You could be considering whether to file taxes as the year comes to a finish. Your income and work status are just two of the variables that will determine the answer. What you need to know is outlined here.
If your income is at least $12,400 and you are a single filer under 65, you must file taxes. The amount required is $24,800 if you are married and filing jointly. Even if your income is below these criteria, you could still need to submit taxes if you are self-employed or have other sources of income.
Twitch streamers are not needed to have an LLC, however it may be advantageous for liability and tax reasons. As an LLC, you can benefit from specific tax advantages while having your personal assets secured in the event of legal disputes. However, creating an LLC can be a difficult procedure, so you should speak with an attorney or accountant before taking any actions.
A dba (doing business as) is optional but may be beneficial for branding reasons. You can register a dba with your state if you wish to use a name different than your own on Twitch. By doing this, you can utilize a business name without creating an LLC or another type of corporate entity.
Yes, you can deduct Twitch donations as business costs on your taxes. To substantiate your deductions, you must, however, keep precise records and receipts. You can write off charges for hardware, software, and internet linked to your Twitch streaming business.
The answer is that Twitch streaming counts as self-employment. You are liable for paying self-employment taxes as a Twitch streamer, which include Social Security and Medicare taxes. Depending on your income, you can also be required to pay anticipated taxes throughout the year.
In conclusion, a number of variables, such as your income and work status, affect the minimum amount of money you must earn to file taxes. Although creating an LLC or dba is not necessary for Twitch streamers, it can be advantageous for liability protection and branding. Because Twitch streaming is regarded as self-employment and Twitch donations are tax deductible as business costs, it’s important to keep detailed records and file your taxes appropriately.