Twitch Streamer Taxes in Connecticut - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Connecticut

From the vibrant gaming communities of New Haven to the dedicated streamers across the state, Connecticut’s growing digital entertainment scene means more residents are earning income through platforms like Twitch. However, alongside the fun comes the responsibility of understanding and fulfilling tax obligations.

As a Twitch streamer, the IRS considers income earned through the platform 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 Connecticut Handles Gig Worker Taxes

Connecticut, known for its strong economy and diverse population, requires all residents to file a state income tax return, regardless of income level. As a self-employed individual earning income through Twitch streaming, you are obligated to report your net earnings to the state of Connecticut. Connecticut operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, the rates are tiered, ranging from 3.0% to 6.99%. It’s important to accurately calculate your adjusted gross income (AGI) and taxable income to determine your correct tax liability.

The primary form for self-employed individuals to report income and calculate Connecticut income tax is Form CT-1040, Connecticut Resident Income Tax Return. You will likely also need Schedule 1 (Connecticut Adjustments to Federal AGI) to report any state-specific adjustments. Connecticut also allows for certain credits and deductions that may reduce your tax burden. Be sure to explore these options to maximize your tax savings. Furthermore, Connecticut requires estimated tax payments if your tax liability is expected to be $1,000 or more. Failing to make these payments can result in penalties. Staying organized with income and expense records is vital for accurate filing.

For detailed information and resources regarding Connecticut state taxes, please visit the official Connecticut Department of Revenue Services website: https://portal.ct.gov/DRS

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 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. 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 your computer, webcam, microphone, lighting, streaming software subscriptions (like OBS Studio Pro), and any professional editing software (e.g., Adobe Creative Cloud).
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. If you use your internet and phone for both personal and business purposes, you need to determine the percentage of time it’s used for streaming. For example, if 50% of your internet usage is for Twitch, you can deduct 50% of the bill.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Twitch streamers. However, if you occasionally travel for work-related events, client meetings, or to purchase equipment, you can deduct those business miles using the standard mileage rate (set annually by the IRS).

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two components: 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. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).