Twitch Streamer Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Mississippi

From the banks of the Mississippi River to the rolling hills, building a community on Twitch is becoming an increasingly popular way for Mississippians to share their passions and earn income. However, alongside the fun and engagement comes the responsibility of understanding and fulfilling tax obligations.

As a Twitch streamer operating in Mississippi, the IRS considers income earned through streaming as self-employment income. This means it must be reported on Schedule C (Profit or Loss from Business) with your federal income tax return (Form 1040). Crucially, any net earnings exceeding $400 are subject to self-employment tax, covering both Social Security and Medicare contributions.

How Mississippi Handles Gig Worker Taxes

Mississippi, known for its hospitality and rich cultural heritage, requires all residents with taxable income to file a state income tax return. As a self-employed individual, even if your primary income source is Twitch streaming, you are obligated to report your earnings to the Mississippi Department of Revenue. Mississippi operates under a flat income tax rate, currently at 5% for the 2025 tax year. This means regardless of your income level, the tax rate remains consistent. The primary form used for filing state income taxes as a self-employed individual is Form 83-101, Individual Income Tax Return.

Mississippi also allows for certain deductions that can reduce your taxable income, mirroring some of the federal deductions. It’s important to maintain meticulous records of all income and expenses related to your Twitch streaming business. Estimated tax payments may be required throughout the year if you anticipate owing more than $1,000 in state taxes. Failure to file and pay on time can result in penalties and interest. The state also offers resources for small businesses, including information on tax credits and incentives. Staying compliant with Mississippi tax laws is essential for avoiding issues and ensuring the continued success of your streaming career.

For more detailed information and resources, please visit the Mississippi Department of Revenue website: https://www.dor.ms.gov/

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 can’t double as a guest room or family space. “Regular use” means you use it 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 creative software like Adobe Creative Cloud if used for creating stream assets.
• 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 you estimate 75% of your internet usage is for streaming, you can deduct 75% 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 streaming-related events, client meetings, 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 Social Security and Medicare taxes that are withheld from an employee’s paycheck. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes.