Twitch Streamer Expenses?

[justabrain]

Hello, I was wondering what count as deductible expenses when it comes to streaming on Twitch. Do games that you bought for streaming on the platform count? Another similar question that I have is: how do I file the expense of a streaming mic?

[AnnetteB6]

The answer depends on whether you are operating a business with the intent to make money as a Twitch Streamer or whether you are doing this as a hobby.

If you are treating it as a hobby, you cannot deduct any expenses on your Federal return (but you can deduct them in certain states).  You would only report your income.

If you are treating this as a business, then both your income and expenses will be reported on Schedule C.  Then any ordinary and necessary expenses that you incur in the operation of your business would be deductible.  The cost of games you purchased for business use would be a business expense.  The streaming mic would be entered as an Asset to be depreciated if its useful life is greater than one year.

To learn more, take a look at the following similar question.  The information provided by Tax Expert BillM223 is very detailed.

I stream on Twitch, how do I report my 1099-MISC as a hobby? I do not consider it to be a business e...

[justabrain]

Could I still report this under "Supplies Expenses" on TurboTax? It said something similar to what you said about not being deductible under Federal taxes but deductible in certain states? I wish it mentioned what states allow this type of deductions.

[HelenC12]

Please clarify so we can try and answer your questions. Will you be claiming your income as self-employed income or hobby income? Are you referring to "unreimbursed job expenses" when referring to claiming a deduction in certain states? What start are you in? 

[justabrain]

I don't know how it's being filed in terms or self-employed or hobby income. The income was from a 1099-MISC, under "Royalties", so I inputted it in TurboTax as such. As for the state deduction, I was referring to this help bar on the side (attached screenshot). I assume you mean "What state are you in?", to which the answer is CA.

[ColeenD3]

This information is for W-2 employees. You are not an employee. From the way you are describing your situation, i.e. claiming job expenses, you consider this your job.

You would enter the income and expenses on Schedule C.

Enter your self-employment income and expenses which will be reported on Schedule C of your tax return, do the following steps:

1. After signing into TurboTax, select "Take Me to My Return"
2. Type "Schedule C" in the search field at the top right hand of the screen.
3. Select "Jump To Schedule C" and you will be brought to the section of TurboTax where you can enter or have entered your business income and expense information