{"id":14049,"date":"2019-01-14T11:35:33","date_gmt":"2019-01-14T09:35:33","guid":{"rendered":"https:\/\/seoblog.taxback.com\/?p=14049"},"modified":"2019-01-14T11:35:33","modified_gmt":"2019-01-14T09:35:33","slug":"do-i-have-to-pay-taxes-on-my-twitch-stream-income","status":"publish","type":"post","link":"https:\/\/www.taxback.com\/blog\/do-i-have-to-pay-taxes-on-my-twitch-stream-income\/","title":{"rendered":"Do I Have to Pay Taxes on my Twitch Stream Income?"},"content":{"rendered":"<p>Whether you\u2019re an avid gamer or you don\u2019t know your Super Mario from your Red Dead Redemption, you probably know the gaming industry is worth a hell of a lot of money.<\/p>\n\n<p>In fact, market research from Newzoo.com has shown that the global games market could potentially grow from $137.9 billion to more than $180.1 billion in 2021. To put things into perspective, in 2013 worldwide, box-office revenue for the film industry was\u00a0<a href=\"https:\/\/www.mpaa.org\/wp-content\/uploads\/2014\/03\/MPAA-Theatrical-Market-Statistics-2013_032514-v2.pdf\" target=\"_blank\" rel=\"noopener\">$35.9 billion<\/a>, while the gaming industry generated around\u00a0<a href=\"https:\/\/newzoo.com\/insights\/infographics\/global-games-market-report-infographics-2013\/\" target=\"_blank\" rel=\"noopener\">$70.4 billion<\/a>. That\u2019s almost twice as much revenue as the film industry.<br \/>\n<iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/jBJJmvjMyCY?si=BhTIILONPiuXGM-W\" width=\"100%\" height=\"350\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2 id=\"pro-gaming-and-e-sports\"><b>Pro-gaming and e-sports<\/b><\/h2>\n<p><i>But<\/i>, did you know that there are people out there making a pretty decent living from gaming? Come to think of it, \u201cpretty decent\u201d is an understatement. Take Chinese pro gamer Chen \u201cHao\u201d Zhihao for instance. In 2014, Zhihao set the Guinness World Record for the most prize money earned through gaming tournaments.<\/p>\n<p>And it\u2019s not just e-sport tournaments that bring in the big bucks, you can now earn from the comfort of your own home by live streaming and recording your gameplay. Gamers everywhere are now using platforms like YouTube and Twitch (more on that in a moment) to reach an audience and make money from their talents.<\/p>\n<p>One of the most popular Twitch streamers is a user named\u00a0<a href=\"https:\/\/www.twitch.tv\/loltyler1\">Loltyler1<\/a>. At just 23 years of age, Tyler Steinkamp rakes in a whopping $5k a day in donations alone. Despite having a reputation as the \u2018most toxic player in North America\u2019 Steinkamp\u2019s fan base is enormous. After being banned for 2 years from his game of choice (<i>League of Legends<\/i>) for disruptive behaviour, his first Twitch stream when the ban was lifted reached over 382,000 viewers, a record-breaking number.<\/p>\n<h2 id=\"what-the-hell-is-twitch-anyway\"><b>What the hell is Twitch anyway?<\/b><\/h2>\n<p>Twitch is an immensely popular app and website amongst passionate gamers. It enables people to sign up, live stream their gameplay and broadcast it to the world. Viewers can then send money to the gamers they favour. It takes more than just talent to become a popular Twitch user, you need a certain amount of charisma or likeability. It isn\u2019t just for gamers, you can share art, talk shows and music, but gamers make up a big percentage of Twitch partners. Before Twitch recruited a large gaming audience, the company was on the brink of failure. Now, it\u2019s one of the biggest streaming sites in the world and has been purchased by Amazon for $917 million in 2014.<\/p>\n<p style=\"text-align: center;\" class=\"orange-cta-btn\"><a style=\"padding: 15px; text-align: center; border-radius: 30px; font-size: 20px; font-weight: bold; background-color: #e74632; color: #fff; margin: 25px 0px 25px 0px;\" href=\"https:\/\/www.taxback.com\/user\/#\/application\/ireland\/essentials\">Get Your Irish Tax Refund Now!<\/a><\/p>\n<p>Twitch Partners and Twitch affiliates are users with a significant following who pay a monthly fee and receive money from ads, donations and other sources via the Twitch platform. This model is used on other platforms like Medium.com and Patreon.com and is similar to the practice of crowdfunding.<\/p>\n<h2 id=\"tax-liability\"><b>Tax liability<\/b><\/h2>\n<p>I know what you\u2019re thinking; hold on just a sec, you mean to say playing Fortnite with my friends could make me a millionaire?<\/p>\n<p>Well, yes but what a lot of people don\u2019t realise is that if you\u2019re an Irish resident and you use gaming as a source of income, you\u2019re obligated to pay tax on that income\u00a0in Ireland. Just because it\u2019s a relatively new profession doesn\u2019t mean streamers are exempt from paying tax. Bummer, I know.<\/p>\n<p>You see, a lot of people are self-employed or earning extra income outside of their PAYE salary through unconventional things like YouTube channels and sites like Patreon or Twitch. The problem is, that they might not think of it that way. There are people all over the world making money from everything from live-streaming computer coding sessions or through the Korean practice of Mukbang aka live streaming yourself eating large amounts of food. The fact is, the employment landscape is changing to include all sorts of strange new things and people might not be knowledgeable when it comes to associated tax implications.<\/p>\n<p>Many streamers, bloggers, social influencers, and YouTubers seem to overlook their legal duty to pay taxes in this kind of scenario, and sometimes other factors can impact whether they\u2019re filing taxes. For instance, some might avoid taxes because they feel it\u2019s too complicated and they don\u2019t know where to start. Another factor is a lack of knowledge about taxes and the penalties associated with failing to pay them. Streamers are quite often very young, sometimes as young as 13. Now, I don\u2019t know about you, but I certainly had no notion of taxes when I was a teenager. That\u2019s why parents whose children are streamers must look into the appropriate tax filing obligations or seek help from a qualified tax agent like Taxback.<\/p>\n<p style=\"text-align: center;\" class=\"orange-cta-btn\"><a style=\"padding: 15px; text-align: center; border-radius: 30px; font-size: 20px; font-weight: bold; background-color: #e74632; color: #fff; margin: 25px 0px 25px 0px;\" href=\"https:\/\/www.taxback.com\/user\/#\/application\/ireland\/essentials\">Get Your Irish Tax Refund Now!<\/a><\/p>\n<p>If you earn over \u20ac5k, a self-assessed tax filing is necessary, if you earn under that amount you can file it under your PAYE.<\/p>\n<p>If you are receiving a PAYE income\u00a0<i>and\u00a0<\/i>making money from streaming, it is taxable through the PAYE system. If your income comes from streaming alone, it\u2019s not taxable through the PAYE system, even if it\u2019s under \u20ac5,000. In this scenario, you\u2019ll be required to report it through self-assessment.<\/p>\n<p>The fact is, if you\u2019re making money via Twitch or a similar platform, your tax obligations are no different to any other self-employed individual.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14050\" src=\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes.jpg\" alt=\"Why bother pay taxes\" width=\"2121\" height=\"1414\" srcset=\"https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes.jpg 2121w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-270x180.jpg 270w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-300x200.jpg 300w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-768x512.jpg 768w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-1024x683.jpg 1024w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-1536x1024.jpg 1536w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-2048x1365.jpg 2048w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-380x253.jpg 380w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-800x533.jpg 800w, https:\/\/www.taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Why-bother-pay-taxes-1160x773.jpg 1160w\" sizes=\"auto, (max-width: 2121px) 100vw, 2121px\" \/><\/p>\n<h2 id=\"why-bother-paying-taxes\"><b>Why bother paying taxes?<\/b><\/h2>\n<p>It\u2019s illegal to avoid taxes and every year that passes without paying them, a surcharge (an annual fee) is added on to the amount you owe for each year you fail to pay. You may also be liable to pay interest. If you fail to disclose your earnings, non-voluntary disclosure can add additional penalties of \u20ac3,000 or more.<\/p>\n<p>If you are in a profession like this, it\u2019s a good idea to set aside some money (figure out the right percentage for your country) so that when you file your taxes, you have enough money to pay them. The more you earn, the more you owe. If you made it big and started earning as much as someone like Loltyler1, you would owe a substantial amount.<\/p>\n<p style=\"text-align: center;\" class=\"orange-cta-btn\"><a style=\"padding: 15px; text-align: center; border-radius: 30px; font-size: 20px; font-weight: bold; background-color: #e74632; color: #fff; margin: 25px 0px 25px 0px;\" href=\"https:\/\/www.taxback.com\/user\/#\/application\/ireland\/essentials\">Get Your Irish Tax Refund Now!<\/a><\/p>\n<p>If you&#8217;re serious about what you\u2019re doing you\u2019ll likely have expenses like say equipment, which might be consoles, headphones, cameras or any other necessary tools. In some cases, business expenses like these can be written off against your earnings let\u2019s look at some examples relevant to the gaming industry.<\/p>\n<p>First of all, there are two types of business expenditure \u2013 revenue and capital:<\/p>\n<ol>\n<li><b>Revenue<\/b>\u00a0expenses are allowable if they are incurred wholly and exclusively for the purposes of the trade. This would include your electricity, internet, accountancy and legal fees.<\/li>\n<li><b>Capital<\/b>\u00a0expenses may qualify for capital allowances relief at 12.5% over 8 years. These expenses include things like consoles, headphones, camera equipment and so on.<\/li>\n<\/ol>\n<p>And another thing, if your streaming work happens to be inconsistent or infrequent, it won\u2019t be considered trading which means you cannot access relief for capital allowances.<\/p>\n<p style=\"text-align: center;\"><strong>We take the hassle out of filing your Irish tax return<\/strong><\/p>\r\n<p style=\"text-align: center;\" class=\"orange-cta-btn\"><a style=\"padding: 15px; text-align: center; border-radius: 30px; font-size: 20px; font-weight: bold; background-color: #e74632; color: #fff; margin: 25px 0px 25px 0px;\" href=\"https:\/\/www.taxback.com\/user\/#\/application\/ireland\/essentials\"; target =\"_blank\" rel=\"noopener\";>GET STARTED<\/a><\/p>\n<p>We know that this kind of thing can be a bit of a headache, so why not let us take care of it? That way, the only challenges you\u2019re up against are the ones in your favourite game!<\/p>\n<p>You\u2019re obligated to file an annual tax return and report your earnings so why not contact us today for help with filing your taxes. Your tax return can also be used to claim any tax allowances that can be offset against your tax bill. You can talk to our team at\u00a0<a href=\"https:\/\/www.taxback.com\/en\/ireland\/self-assessed-tax-return\/\">Taxback<\/a>\u00a0to save yourself a big headache with the taxman.<\/p>\n","protected":false},"excerpt":{"rendered":"Pro-gamers and streamers are earning big, but did you know gaming income is taxable in Ireland? From Twitch donations to YouTube ads, here\u2019s how to stay tax-compliant while maximizing your earnings!\n","protected":false},"author":388,"featured_media":14051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"yes","_lmt_disable":"no","footnotes":""},"categories":[368,361],"tags":[],"class_list":{"0":"post-14049","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tax-tips-ireland","8":"category-tax-tips"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pro-Gaming Income &amp; Tax Explained | Streamers, Gamers, &amp; Twitch Revenue<\/title>\n<meta name=\"description\" content=\"Making money from gaming? Learn how to handle taxes for Twitch, YouTube, and pro-gaming income. Avoid penalties and discover tax relief for gaming expenses!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.taxback.com\/blog\/do-i-have-to-pay-taxes-on-my-twitch-stream-income\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pro-Gaming Income &amp; Tax Explained | Streamers, Gamers, &amp; Twitch Revenue\" \/>\n<meta property=\"og:description\" content=\"Making money from gaming? Learn how to handle taxes for Twitch, YouTube, and pro-gaming income. 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