I stream on twitch, how do I do taxes for the money I make or donations I receive?

how do i do taxes

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TurboTax Tax Support

6:24 pm PST February 19, 2015

Since Twitch is part of a third party merchant network and you have a credit card merchant account (Paypal account), Paypal would issue you a 1099-K.

Now in order to receive a 1099-k you must of earned income:

  • from payment card transactions (e.g. debit, credit or stored-value cards), and/or
  • in settlement of third-party payment network transactions above the minimum reporting thresholds of –
    • gross payments that exceed $20,000, AND
    • more than 200 such transactions
Twitch is not considered a recognized charitable organization, the money you received would not be considered donations but instead income.

Twitch would not issue a 1099-MISC because according to IRS rules: Payments made with a

credit card or payment card and certain other types of payments, including third party network transactions, must be reported on Form 1099-K.

Since your Form 1099-K (if you receive one) is for self-employment you would report it on a Schedule C, enter the income along with your other business income in TurboTax.

To Enter 1099-K:

  1. Go to Federal Taxes Tab
  • Under Wages & Income, click I'll choose what I work on.
  • Scroll down to the 1099-MISC and Other Common Income
  • On the Income from Form 1099-K line click Start/Update
  • Answer Yes to did you receive a form 1099-K

    If you made less than $20,000 related to third party merchant transactions, the IRS does not require you to report it. Its a loophole in the system that still being worked out.

    Source: ttlc.intuit.com

    Category: Taxes

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