Twitch Streamer Taxes in Rhode Island - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Rhode Island

From the shores of Narragansett Bay to the bustling streets of Providence, Rhode Island’s growing community of Twitch streamers are building audiences and businesses. However, alongside the fun and engagement comes the responsibility of understanding and fulfilling tax obligations.

As a Twitch streamer operating as an independent contractor, the IRS considers income earned through streaming as self-employment income. This means all revenue exceeding $400 for the 2025 tax year must be reported on Schedule C (Profit or Loss From Business) with your federal income tax return (Form 1040). Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions.

How Rhode Island Handles Gig Worker Taxes

As a resident of Rhode Island, filing a state income tax return is required, even if no federal tax is due. Rhode Island employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Rhode Island residents earning income as self-employed individuals will primarily use Form RI-1040NR to report their earnings. This form allows for the calculation of your adjusted gross income, deductions, and ultimately, your Rhode Island income tax liability. It’s important to note that Rhode Island also has a minimum tax calculation that may apply, particularly if you have significant deductions. Furthermore, Rhode Island allows for itemized deductions similar to the federal level, which can help reduce your overall tax burden. Be sure to keep accurate records of all income and expenses to maximize potential deductions. Rhode Island also offers various credits that may be applicable to self-employed individuals, such as credits for certain business expenses or investments. Staying informed about these changes and utilizing available resources is vital for accurate tax filing. The Rhode Island Division of Taxation provides comprehensive information and resources for taxpayers; you can find more details at https://www.ri.gov/taxation/.

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 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 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 like your computer, webcam, microphone, and streaming software (including subscription costs for services like Adobe Creative Cloud or stream hosting platforms) are generally deductible as business expenses. If an item has a useful life of more than one year (like a computer), it may need to be depreciated over several years.
• 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 streamer, mileage deductions are less common. 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).

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 employer and employee portions of these taxes when you are traditionally employed. You are responsible for paying both portions as a self-employed individual. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income.