Twitch Streamer Taxes in Wisconsin - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Wisconsin

From the shores of the Great Lakes to the vibrant gaming communities across the state, Wisconsin Twitch streamers are building exciting careers – and with that comes the responsibility of understanding tax obligations.

As a self-employed individual, all income earned through Twitch streaming is subject to federal income tax. This income must be reported to the IRS on Schedule C (Profit or Loss from Business) as part of your Form 1040. Furthermore, earnings exceeding $400 require the payment of self-employment tax, covering both Social Security and Medicare contributions.

How Wisconsin Handles Gig Worker Taxes

As a resident of Wisconsin, a state income tax return is required even if your federal tax liability is zero. Wisconsin utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Wisconsin’s primary form for reporting self-employment income and calculating state income tax is Form 1040-WI, along with Schedule 1 (Wisconsin Adjustments to Federal Adjusted Gross Income) and potentially Schedule Z (Wisconsin Self-Employment Tax). Wisconsin also requires you to report your federal Schedule C income on Form 1040-WI.

Wisconsin offers several deductions and credits that can reduce your state tax liability. These include a deduction for federal income tax paid, and various credits for things like educational expenses or property taxes. It’s important to note that Wisconsin’s tax laws often mirror federal rules, but there can be differences, particularly regarding deductions and credits. For example, Wisconsin has its own rules regarding the treatment of certain business expenses. Accurate record-keeping is crucial to ensure you claim all eligible deductions and avoid potential issues during an audit. Wisconsin also has a minimum tax calculation that may apply if your deductions significantly reduce your tax liability.

For the most up-to-date information and resources, please visit the Wisconsin Department of Revenue: https://www.revenue.wi.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 cannot 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, such as your computer, webcam, microphone, and lighting, is generally deductible. Software subscriptions directly related to streaming, like Adobe Creative Cloud for creating thumbnails or a streaming hosting service, are also deductible business expenses.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your Twitch streaming activities. Carefully track your usage to accurately determine this percentage.

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, gaming conventions, or to purchase essential equipment, you can deduct those business-related miles.

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 withheld from an employee’s paycheck, but as a self-employed individual, you are responsible for paying both the employer and employee portions.