Twitch Streamer Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Montana

From the rugged landscapes inspiring your gameplay to the dedicated community tuning in from across the Treasure State, being a Twitch streamer in Montana offers a unique blend of independence and opportunity. However, that independence comes with tax responsibilities. As a self-employed individual, earnings from Twitch are considered taxable income, and understanding those obligations is crucial for avoiding penalties.

The IRS requires all self-employed individuals earning over $400 in net profit to report their income on Schedule C (Profit or Loss From Business) with Form 1040. This income is then subject to both income tax and self-employment tax, which covers Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential for maximizing deductions and ensuring compliance.

How Montana Handles Gig Worker Taxes

As a resident of Montana, filing a state income tax return is required, even if no federal tax is owed. Montana operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana utilizes Form 17, Individual Income Tax Return, as the primary form for self-employed individuals to report their income and calculate their state tax liability. Montana’s tax brackets are adjusted annually, so it’s important to consult the Montana Department of Revenue website for the most up-to-date information. Beyond the standard income tax, Montana also has a business equipment tax, though this generally applies to larger equipment purchases and may not directly impact most streamers. Furthermore, Montana offers several credits and deductions that could benefit self-employed individuals, such as those related to health insurance premiums. It's important to explore these options to minimize your tax burden. Montana also requires estimated tax payments if you expect to owe more than $500 in taxes for the year. Failing to make these payments can result in penalties. Resources are available through the Montana Department of Revenue to help determine if estimated payments are necessary.

You can find more information and resources on the Montana Department of Revenue website: https://revenue.mt.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 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 creative software like Adobe Creative Cloud if used for creating stream graphics or editing videos.
• 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 home-based worker, mileage deductions are less common for Twitch streamers. However, if you occasionally travel for streaming-related events, client meetings (e.g., sponsorships), 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. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).