Twitch Streamer Taxes in Minnesota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Minnesota

From the shores of Lake Superior to the bustling Twin Cities, Minnesota’s thriving streaming community contributes to a vibrant digital landscape – but with that success comes tax responsibility. As a Twitch streamer operating within the state, understanding your tax obligations is crucial for staying compliant with both federal and Minnesota regulations.

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) as part of your Form 1040. Furthermore, this income is subject to self-employment tax, covering both Social Security and Medicare contributions.

How Minnesota Handles Gig Worker Taxes

As a resident of Minnesota, a state income tax return is required even if your federal tax liability is zero. Minnesota utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Minnesota residents filing as self-employed individuals will primarily use Form M1, Minnesota Income Tax Return, along with Schedule 1, which is used to calculate adjustments to income. It’s important to note that Minnesota’s tax rates and brackets are subject to change annually, so consulting the Department of Revenue website for the most up-to-date information is essential. Minnesota also has a specific form, Schedule IN, for calculating income tax due from net earnings from self-employment. Unlike the federal level, Minnesota does not have a separate self-employment tax calculation; your self-employment income is simply added to your other income and taxed at your applicable marginal rate. Minnesota also offers various credits and deductions that may reduce your overall tax liability, such as the Working Family Credit, so thorough research is recommended. Remember to keep accurate records of all income and expenses throughout the year to ensure accurate filing. You can find comprehensive information and resources on the Minnesota Department of Revenue website: https://www.revenue.state.mn.us/

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 streaming business. “Exclusive use” means that portion of your home is used solely for streaming – it cannot double as a guest room or family room. “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 computers, cameras, microphones, lighting equipment, and subscriptions to services like Adobe Creative Cloud, streaming software, or website hosting.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your streaming activities. For example, if 80% of your internet usage is for streaming, you can deduct 80% of your internet bill.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Twitch streamers. However, you can claim mileage for any occasional trips taken specifically for business purposes, such as attending industry events 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 covers contributions that are typically handled by an employer in a traditional employment situation. It’s applied to your net earnings (income minus business expenses) exceeding $400.