Twitch Streamer Taxes in Michigan - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Michigan

From the shores of the Great Lakes to the vibrant gaming communities across Michigan, Twitch streaming has become a popular avenue for entertainment and income. However, alongside building a dedicated fanbase, Michigan streamers must navigate the complexities of self-employment taxes.

As a self-employed individual, the IRS requires reporting all Twitch income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, if net earnings (income minus expenses) exceed $400, self-employment tax applies, covering both Social Security and Medicare contributions. Maintaining meticulous records of income and expenses is paramount for accurate tax filing.

How Michigan Handles Gig Worker Taxes

As a resident of Michigan, a state income tax return is required regardless of income level. Michigan operates under a flat income tax rate, currently at 4.05% for the 2025 tax year. This means all taxable income is taxed at the same rate. Twitch streaming income is considered taxable income and must be reported on the Michigan Individual Income Tax Return, Form MI-1040. Self-employed individuals will also need to file Schedule 1 (Additional Income and Adjustments) to report business income and deductions. Michigan also offers various credits and deductions that may reduce your tax liability, such as the Earned Income Tax Credit. It’s important to note that Michigan does not have local income taxes levied by cities or counties, simplifying the state tax landscape. Accurate record-keeping of all income and expenses is vital to ensure compliance with Michigan tax laws. The Michigan Department of Treasury provides comprehensive resources and forms online, including detailed instructions for self-employed individuals. Failure to file or pay taxes on time can result in penalties and interest.

For more information and access to forms, please visit the Michigan Department of Treasury: Michigan Department of Treasury

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 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 directly related to your Twitch stream is deductible. This includes computers, webcams, microphones, lighting, streaming software, graphic design programs (like Adobe Creative Cloud), and any subscription fees for services used in your stream (e.g., hosting providers, music licensing).
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. For example, if 80% of your internet usage is for streaming, you can deduct 80% of the bill. Accurate tracking of business vs. personal use 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 vehicle expenses.

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