Twitch Streamer Taxes in Colorado - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Colorado

From the majestic peaks inspiring your gameplay to the vibrant Denver gaming community, being a Twitch streamer in Colorado offers a unique backdrop for building a dedicated audience. However, alongside the fun and engagement comes the responsibility of managing taxes as a self-employed individual.

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 your Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions.

How Colorado Handles Gig Worker Taxes

As a resident of Colorado, a state income tax return is required, regardless of income level. Colorado operates under a flat income tax rate, currently at 4.40% for the 2025 tax year. This means all taxable income is taxed at the same rate. Twitch streamers operating as sole proprietors or single-member LLCs will report their income and expenses on Colorado’s Form DR 0104, Individual Income Tax Return. Colorado also requires the submission of Schedule CO, Colorado Adjustments, to report any state-specific adjustments to federal adjusted gross income. It’s important to note that Colorado does not have a separate tax form specifically for self-employment income; it’s integrated into the standard individual income tax return. Estimated tax payments are generally required quarterly if your expected tax liability (federal and state) is $1,000 or more. Failing to make timely estimated payments can result in penalties. Colorado’s Department of Revenue provides comprehensive information and resources for taxpayers, including online filing options. You can find more information at Colorado Department of Revenue.

Key Tax Deductions for Home-Based Twitch Streamers

• Home Office Deduction: To qualify for 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 used solely for streaming – it cannot double as a guest room or family space. “Regular use” means you use the space consistently for your streaming activities. There are two methods for calculating this deduction: the simplified method, which allows for $5 per square foot of the space (up to a maximum of 300 square feet), and the actual expense method, where you calculate the percentage of your home used for business and deduct that percentage of your mortgage interest, rent, utilities, and other home-related expenses.
• Hardware & Software: The cost of essential hardware and software used for streaming is generally deductible. This includes your computer, webcam, microphone, lighting, streaming software subscriptions (like OBS Studio Pro), and creative software like Adobe Creative Cloud if used for creating stream graphics or editing videos.
• 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, if you occasionally travel for streaming-related events, client meetings (e.g., sponsorships), or to purchase equipment, you can deduct those business-related miles using the standard mileage rate set by the IRS.

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 employer and employee portions of these taxes when you are traditionally employed. You are responsible for paying both portions as a self-employed individual. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).