Twitch Streamer Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Arkansas

From the rolling hills of the Ozarks to the bustling city of Little Rock, Arkansas is becoming a hub for digital creators, and Twitch streaming is no exception. However, alongside building a community and entertaining viewers, Arkansas Twitch streamers have tax obligations to consider.

The IRS considers income earned through Twitch streaming as self-employment income. This means all earnings over $400 must be reported to the IRS on Schedule C (Profit or Loss From Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions.

How Arkansas Handles Gig Worker Taxes

As a resident of Arkansas, a state income tax return is required, regardless of how much income is earned through Twitch streaming. Arkansas utilizes a graduated income tax system, meaning the tax rate increases as income increases. For the 2025 tax year, Arkansas’ tax brackets are expected to remain similar to prior years, ranging from 0% to 5.9% depending on filing status and income level. The primary form for self-employed individuals to report income and calculate Arkansas state income tax is Form AR1040. It's important to note that Arkansas allows for itemized deductions similar to the federal level, which can help reduce taxable income. Additionally, Arkansas offers a standard deduction, which may be more beneficial depending on individual circumstances. Arkansas also has specific rules regarding pass-through entity income, which may apply depending on how the streaming business is structured. Staying current with changes to Arkansas tax law is vital, as rates and regulations can be updated annually. Resources are available to help navigate these complexities, and professional tax advice is always recommended.

For more information and access to forms, please visit the Arkansas Department of Finance and Administration: Arkansas Department of Finance and Administration

Key Tax Deductions for Home-Based Twitch Streamers

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for your Twitch streaming business. “Exclusive use” means that portion of your home is only used for streaming – it cannot double as a guest room or family room. “Regular use” means you use the space consistently for streaming activities. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of essential hardware and software used for streaming is generally deductible. This includes computers, cameras, microphones, lighting, and subscriptions to services like Adobe Creative Cloud, streaming software, or website hosting. If an item has a useful life of more than one year (like a computer), it may need to be depreciated over several years.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. For example, if you use your internet 75% for streaming and 25% for personal use, you can deduct 75% of the cost. Maintaining detailed records of usage is crucial.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Twitch streamers. However, mileage can be claimed for any occasional trips taken specifically for business purposes, such as attending gaming conventions or meeting with sponsors.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from employees’ paychecks. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes.