Twitch Taxes in 2023, Explained (For Youtubers, Twitch Streamers, & Content Creators)

[@ringgate]

Thank you 😊

[@CMDRMitchcraft]

Welcome!

[@bluemoonkraken8410]

this may seem dumb but. I am a first timer. I haven't even made 200 yet. well below 600, do u still need to file taxes....is filing different from paying? ive seen many sources that say I still need to pay but many other sources say I dont unless. I reach 400-600. IRS all quite confusing....

[@bluemoonkraken8410]

its....its all confusing

[@bluemoonkraken8410]

do note that I have not received any emails or any forms in the physical mail. no notifications. the only form I can find by manually going to my twitch dashboard is the 1099 misc

[@kyuirah]

Twitch taxes are very scary for me , Ive wanted emotes but once I unlocked the slots I started asking people not to sub/cheer. So is there no standard deduction if you make $600+ on Twitch and dont have any other income? Like if I just stream casually as a HOBBY, but I also happen to make $1,000 in the tax year but dont have any other income do I still need to worry about paying taxes?

[@CMDRMitchcraft]

I'm not a tax professional, but my understanding is that if you make more than $400 (according to this comment's timestamp) in net earnings, you have to file. You may not have to PAY, but you should still definitely file - the standard deduction still applies unless you've itemized out receipts and other expenses. Which, if you are a hobby streamer, is less important than if you run your stream like a true business. Source: www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return

[@sweatygamergainz870]

Great video. I planning turning my stream into an official business. Lower the music a bit on your next videos.

[@CMDRMitchcraft]

Thanks for the feedback! I've been trying to get my audio levels just right, and I'll make sure to take that into consideration for the next video. And good luck turning your stream into a business! 👍

[@lovesickfungus]

Is the set amount (the $600 to $800) a yearly thing or is it an accumulation of income over multiple years? Say I make $200 in the year 2022, $300 in the year 2023, then $500 in the year 2024. Would all of that income from multiple years add up together or it only be based on that set year then the next year it resets almost? I really enjoyed your video and it really brought some comfort to me as you explained everything very well, thank you :)

[@CMDRMitchcraft]

That's a great question, and I appreciate the feedback! This is per calendar/tax year, so all of those years you would be fine. Now in 2025 if you made it gangbusters and got $1000, you'd have to pay, but in 2026 if you only made $500, you'd be fine.

[@ofr1kon482]

I have a question does twitch take the tax out of the payments that they do or is it sperate?

[@CMDRMitchcraft]

Great question! If you are an affiliate, Twitch does not take out taxes. That's something you have to do separately. I can't speak for partners because I'm not one, but if anyone sees this and wants to chime in please do.

[@ofr1kon482]

@@CMDRMitchcraft ok yeah thank you I just got affiliate and was wondering if twitch automatically pays it

[@ofr1kon482]

@@CMDRMitchcraft I have another question though if you don't mind how much money do you have to make on twitch to get taxes

[@CMDRMitchcraft]

@@ofr1kon482 ANY money you make technically has to be reported, but you only really ever have to PAY taxes if income from all your sources is more than $600 (merch sales, twitch payouts, Ko-Fi/Patreon payments, donations - all those count toward that)

[@Gamerszo]

uhm what about value added tax? Does Twitch already pay it to the government or do you still have to pay it.

[@CMDRMitchcraft]

Good question. VAT is passed through to the subscriber. YOU shouldn't have to pay it because it's been paid at the point of purchase. Again, I'm not a financial advisor, so I'd double-check this, but from what I researched this is what I found.

[@Gamerszo]

@@CMDRMitchcraft Yeah I tried to figure it out since a friend of mine wants to become big -_-. But he knows jack about taxes. Tried to ask Twitch if they transfer the money with VAT included or not. And all I got was, well we pay our taxes..... for the love of, they cant even give a proper answer.

[@Rugratboy]

So im looking to get into streaming on twitch. If I ever to make around lets say 400. (based on what I've read else where) and I'm 13. Does that mean my parent does the taxes for whatever it is? or is there none? Would I be the one to be payed in full on lets say paypal. Or would my parents get around 30% as taxes? sorry for asking a lot of questions just rather not find out I'm breaking a law in the future xD

[@CMDRMitchcraft]

So, I looked it up here because I wasn't sure myself: www.quora.com/I-just-got-an-affiliate-on-Twitch-but-I-am-a-minor-How-do-I-set-up-the-tax-aspect#:~:text=A%20minor%20must%20file%2C%20for,tax%20return%20for%20this%20year. Basically, if you make over 12k a year, THEN you file/pay taxes. Otherwise... you're good to go... at $400. More than that? You will probably get a 1099 and you'll need to file taxes yourself - which is fine. No laws broken.

[@Rugratboy]

@@CMDRMitchcraft ah alrighty thanks for the help!

[@CMDRMitchcraft]

@@Rugratboy Happy to help - good luck!

[@BigExlo]

How much money do you need to make in order to pay taxes? 😔😔😔

[@CMDRMitchcraft]

Good question! Reminder: I'm not a tax pro, so this isn't advice. To FILE your taxes, if you make -any- money you are technically supposed to file taxes. You usually will not PAY any taxes until you've reached $800 in income (revenue - deductions). That may vary depending on location and stuff, but that's a pretty standard formula for looking at it.

[@BigExlo]

@@CMDRMitchcraft so what if I’m a affiliate on twitch and I use a parent guardian Ssn and the adult does her taxes normally. Will I be fine and receive the money from twitch?

[@CMDRMitchcraft]

@@BigExlo You should, yes - that's all bank account driven and not based on SSNs. HOWEVER... the adult would need to claim the income if it's over $800 (really, they need to claim all of it, but they'd have to pay taxes on any income made over $800). Again, not a pro, but that's how I see it based on that.

[@BigExlo]

@@CMDRMitchcraft so if I make $100 dollars the adult won’t pay taxes and I would get the money on my PayPal?

[@CMDRMitchcraft]

@@BigExlo based on what you told me, that is correct. Your taxes and your payouts are different things. as long as you have your payout information correct, you should get it. Taxes are what's paid from you to the government, and are dependent on how much you make and where you live.