Twitch Streamer Taxes in Indiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Indiana

From the bustling gaming communities of Indianapolis to the dedicated streamers across the Hoosier State, generating income through Twitch requires careful attention to tax obligations. As a self-employed individual, Twitch streamers in Indiana are responsible for reporting all income earned and paying the appropriate taxes, both federal and state.

The IRS considers income earned through Twitch as self-employment income. This means all earnings over $400 must be reported 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 Indiana Handles Gig Worker Taxes

As a resident of Indiana, a state income tax return is required regardless of whether you owe any tax. Indiana operates under a flat income tax rate, currently at 3.15% 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 Schedule SE (Self-Employment Tax) and then transfer the net profit to Form IT-1040, Indiana Resident Income Tax Return. The primary form for self-employed individuals in Indiana is Form IT-1040, along with Schedule IN-SE, which calculates your adjusted gross income from self-employment. Indiana also requires estimated tax payments if you expect to owe $1,000 or more in state income tax. These payments are typically made quarterly. Failure to make timely estimated tax payments can result in penalties. Indiana’s Department of Revenue offers resources and tools to help calculate and pay estimated taxes. It’s important to note that Indiana conforms to many federal deductions, but it’s always best to verify specific deductions with the state guidelines. Indiana also offers a business entity tax search tool to verify your business's tax standing.

For more information and resources, please visit the Indiana Department of Revenue: https://www.in.gov/dor/

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 the area is only used for streaming – no family activities or other business purposes. “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, such as computers, webcams, microphones, and lighting, is deductible. Software subscriptions directly related to streaming, like Adobe Creative Cloud for graphics or streaming software licenses, are also deductible. These are generally considered Section 179 expenses, allowing for full deduction in the year of purchase (subject to limitations).
• 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, or to purchase equipment, you can deduct those business miles using the standard mileage rate (set annually by the IRS) or actual expenses.

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 covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).