Twitch Streamer Taxes in Vermont - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Vermont

From the Green Mountains to the digital world, Vermont Twitch streamers are building communities and earning income – and that income is subject to both federal and state taxes. Successfully navigating these obligations requires understanding self-employment tax rules and available deductions.

As a self-employed individual, meaning you operate as a sole proprietor, all income earned through Twitch streaming must be reported to the IRS. This is typically done using Schedule C (Profit or Loss From Business) attached to your Form 1040. Crucially, earning $400 or more necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions.

How Vermont Handles Gig Worker Taxes

As a resident of Vermont, a state income tax return is required regardless of income level. Vermont utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means your tax burden isn't a flat percentage; it's tiered. Vermont’s Department of Taxes is the primary resource for all state tax information. You can find detailed guidance and forms on their website: Vermont Department of Taxes. The primary form for self-employed individuals to report income and calculate Vermont income tax is Form INC-100, Individual Income Tax Return. Vermont also requires Schedule IN-100, which is used to calculate adjustments to federal adjusted gross income.

Vermont also has a Use Tax, which may apply to purchases made online that were not subject to sales tax. Keep records of these purchases, as they may need to be reported. Furthermore, Vermont offers various credits and deductions that may reduce your tax liability, such as credits for childcare expenses or education. It is important to review the Vermont Department of Taxes website for the most up-to-date information on available credits and deductions. Estimated tax payments are generally required if you expect to owe $500 or more in Vermont income tax. Failing to make timely estimated payments can result in penalties.

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 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 like your computer, webcam, microphone, and streaming software (e.g., OBS Studio, Streamlabs Desktop) are deductible business expenses. Ongoing subscription costs for services like Adobe Creative Cloud or hosting platforms are also deductible.
• 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 dedicated to your Twitch stream. For example, if 50% of your internet usage is for streaming, you can deduct 50% 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 client meetings, conferences, or to purchase equipment specifically for your stream, you can deduct those business-related miles.

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 effectively covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. It’s calculated on your net earnings – your gross income minus business expenses – exceeding $400.