Twitch streaming donations?

[warriorgleek444]

I start streaming on twitch a couple of weeks ago, and i do so three times a week now, and i wanted to set up a donation box thingy for it to pay of my car repairs ($500) how would this all work into my taxes? some places say that you dont have to file anything for this until I make like $20k or some number, but i wanted to make sure before I started this incase something bad happens.

[rjs · Accepted solution]

Form 1099-K is issued by a payment processor, not by the person who receives the payments. A payment processor doesn't have to issue a 1099-K unless the total is over $20,000. You are not a payment processor, so that $20,000 threshold doesn't apply to you. You have to report all your income, no matter how little it is, whether or not you get a 1099-K, 1099-MISC, or any other form.

By taking money for streaming, on Twitch or anywhere else, you are in business for yourself. The money you get is business income, not gifts or donations. You have to report it as business income on your tax return. You have to report all of it, no matter how little it is. And you have to report it even if you don't get any kind of 1099 form.

The second link that SweetieJean posted, from streambig.net, has very good information. Read it.

[warriorgleek444]

okay, so if I make under $20k how would I input that into my taxes in turbo tax? would I need the business version of the software or something?

[rjs]

When you posted your question you indicated that you are using the CD or download TurboTax software, not TurboTax Online. If that's correct, you can enter business income in Deluxe. TurboTax Home & Business (not TurboTax Business) would give you a more detailed interview, and more help, for business income and expenses, but if your situation is fairly simple you don't need it.

Here's how to enter business income in TurboTax Basic, Deluxe, or Premier CD/Download software.

- Click the Federal Taxes tab.
- Click Wages & Income.
- Click "I'll choose what I work on."
- On the screen "Your 2016 Income Summary," scroll down to the Business Items section.
- Click the Start or Update button for "Business Income and Expenses (Sch C)."

You will get to a screen that asks you whether you received a Form 1099-MISC. Answer No, and the next screen will have a box to enter income that was not on a 1099-MISC.

[warriorgleek444]

okay, but I also do work a real job for someone, would it let me enter both? I'm sorry for so many questions, but im a tax noob as they would say.

[rjs]

Yes, you can also enter your "real job" the same way you always do. In your real job are you an employee (W-2) or a contractor (1099-MISC)? If you get a W-2, just enter it under Wages and Salaries, the same as you would without the Twitch income. If you get a 1099-MISC for your real job, or no form at all, that's also business income. Unless the real job is also streaming, you should enter them as two separate businesses.

[warriorgleek444]

okay, thanks so much

[SweetieJean]

https://ttlc.intuit.com/questions/2725927-i-stream-on-twitch-how-do-i-do-taxes-for-the-money-i-make-...

[SweetieJean]

"Twitch is not considered a recognized charitable organization, the money you received would not be considered donations but instead income."  However, I am not sure I agree with this statement, as I see it more like a gift, ala Go Fund Me.  SuperUsers?

[warriorgleek444]

I just wasn't sure if that thread was still up to date is all.

[warriorgleek444]

but would I only need to fill out a 1099 if I got over $20k?

[xmasbaby0]

Posted to catch attention of any SuperUsers who might be more familiar.

[SweetieJean]

<a rel="nofollow" target="_blank" href="http://www.streambig.net/stream-big/streaming-and-taxes">http://www.streambig.net/stream-big/streami...>