Twitch Streamer Taxes in Wyoming - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Wyoming

Trading virtual worlds for real-world income as a Twitch streamer in the Equality State requires understanding the tax landscape. While Wyoming’s wide-open spaces and independent spirit are appealing, the IRS still expects timely and accurate tax filings.

As a Twitch streamer, the IRS considers income earned through streaming, subscriptions, donations, and sponsorships as self-employment income. This means it must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, earning $400 or more as a self-employed individual triggers the requirement to pay self-employment tax, covering both Social Security and Medicare contributions.

How Wyoming Handles Gig Worker Taxes

Wyoming stands out as a particularly tax-friendly state for independent contractors and gig workers. Notably, Wyoming is one of the few states without a state income tax. This means streamers won’t be filing a state income tax return, unlike their counterparts in many other states. However, this does not exempt streamers from federal income tax obligations. The IRS still requires reporting of all income, regardless of where it’s earned.

Wyoming’s lack of state income tax can be a significant benefit, allowing streamers to retain a larger portion of their earnings. However, it also means there are fewer state-level deductions or credits available to offset federal tax liabilities. Wyoming does have a sales tax, but this generally doesn’t apply directly to digital services like Twitch streaming. However, if a streamer were to sell merchandise or physical goods related to their stream, they would be responsible for collecting and remitting Wyoming sales tax. Given Wyoming’s reliance on mineral taxes, the state’s fiscal health isn’t directly tied to income tax revenue, contributing to the continued absence of a state income tax. Streamers should still maintain meticulous records of all income and expenses for accurate federal tax reporting.

For more information on Wyoming’s tax laws and business regulations, please visit the Wyoming Department of Revenue: https://revenue.wyo.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 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 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 and software used for streaming is generally deductible. This includes computers, cameras, microphones, lighting, streaming software, and subscriptions to services like Adobe Creative Cloud or hosting platforms. These are typically depreciated over their useful life, or, under Section 179, potentially expensed in the year of purchase (subject to limitations).
• 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 70% of your internet usage is for streaming, you can deduct 70% 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 client meetings, promotional events, 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 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 employees’ paychecks. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).