You entertained your audience this year. You got to do what you love and made money off of it. You got those subs, you got those bits, you got those tips, and maybe even some sponsorships and ad revenue. Maybe you have a great merch store that is doing well. It’s great when the money is coming in, but not as fun when you have to pay the taxes on it. The good news is that what you do is a profit generating enterprise, meaning you have a trade or business where you can deduct business expenses against your revenue. Here are some deductions for streamers that you should be keeping track of so you can reduce your tax liability.
Games
The games you purchase to entertain your audience are tax deductible. Without the games themselves you have no way to make money. Imagine you are a painter and you don’t have a paintbrush. The keyway to think about some of your unique deductions are as long as they meet the definition of “ordinary and necessary” per the IRS then you have a business deduction. This also includes an DLC and in-game purchases. So make sure to keep track of your spending.
Software
Your software costs required to record, edit, store data, etc. are all necessary to your streaming business. This also includes ancillary software such as Microsoft 365, bookkeeping software, chatgpt, etc.
Equipment
Bought or built that sweet gaming PC you have been dreaming of this year? Fancy new microphone? Did you buy soundproofing for the room where you record? As long as you are using those for business it is tax deductible. Note that more expensive equipment may need to be capitalized and depreciated over time (typically purchases over $2,500). However, there are accelerated depreciation options as well.
Travel
If you are traveling for business you may be able to write off a portion of your travel costs. For example, if you are traveling to a gaming convention or tournament where you will be participating, doing a panel, or setting up a booth, you will be able to write off your airfare, lodging, and transportation, plus any other costs associated with the event. If there are days not associated with business, say if you are staying a few extra days for vacation, you would need to prorate those costs to be sure only the costs associated with the business are deducted. Make sure to maintain very good documentation, as travel is one of the most challenged line item on a tax return.
Merchandise Costs
If you have a merch store there are going to be costs associated with making the merchandise, shipping, website maintenance, and more. Make sure to track all of these costs so you can take the deduction.
Service Costs
When you have grown to any kind of notoriety you probably have a team behind you helping you out. You probably have a professional video editor at the very least. Any cost you pay to a 3rd party for services that are helping you is a write off. Make sure you collect a form w9 from your providers, as you may need to provide them a form 1099 each tax year.
Conclusion
Entertaining fans with gaming streams would not be considered your typical business twenty years ago. But it is a fun and well known legitimate business in 2025 where you are capturing people’s attention and providing enjoyment. Once you start profiting from what you do you need to make sure you are planning on how to grow your business and minimize your taxes along the way.
We love working with streamers. If you need help managing your accounting and taxes for your streaming business, we would love to help. Reach out to us today at High Impact CPA and learn what we can do for you.
