Twitch Streamer Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in South Carolina

From the vibrant gaming communities around Clemson University to the growing esports scene in Columbia, South Carolina is becoming a hub for digital entertainment – and that means more Twitch streamers navigating the complexities of tax season.

As a Twitch streamer operating in South Carolina, the IRS considers income earned through streaming as self-employment income. This necessitates reporting earnings 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. Accurate record-keeping throughout the year is paramount for a smooth tax filing process.

How South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, a state income tax return is required, regardless of income level. South Carolina employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, the rates are expected to remain similar to prior years, ranging from 0% to 6.4%. The primary form for self-employed individuals to report income and calculate their South Carolina income tax liability is Form SC1040. It's important to note that South Carolina also allows for certain deductions and credits that can reduce your overall tax burden. These include, but are not limited to, standard or itemized deductions, and potential credits for things like charitable contributions. South Carolina also has a use tax on certain online purchases, so keeping records of those transactions is important. Furthermore, estimated tax payments may be required throughout the year if your tax liability is expected to exceed $100. Failure to make these payments could result in penalties. Staying informed about changes to South Carolina tax law is crucial; the South Carolina Department of Revenue provides comprehensive information and resources on their website: South Carolina Department of Revenue.

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 cannot 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 like your computer, webcam, microphone, and streaming software (including subscription costs for services like Adobe Creative Cloud or streaming 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 its useful life.
• 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 essential to support this deduction.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Twitch streamers. However, if you occasionally travel for client meetings, promotional events, or to purchase equipment specifically for your stream, you can deduct those business-related 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 components: 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 (AGI).