Every gamer's dream is to make a successful streaming career, but just how do you do that? With Twitch providing multiple ways to make money on their platform, people often ask which is the best way. Here are all the ways you could earn money streaming on Twitch.

large_image4_cacb39b13f.webp

medium_image4_cacb39b13f.webp

small_image4_cacb39b13f.webp

thumbnail_image4_cacb39b13f.webp

image4_cacb39b13f.webp

Every gamer's dream is to make a successful streaming career, but just how do you do that? With Twitch providing multiple ways to make money on their platform, people often ask which is the best way.

Here are all the ways you could earn money streaming on Twitch.

There are multiple ways in which Twitch helps payout creators, with each one having its own unique perks. 

Their three most popular forms are **subscriptions, bits, and ads**.

Being one of the largest streaming platforms for gamers alike, Twitch has dominated the industry when it comes to making live-streaming a career. Streamers can utilize the website for their own personal funding. 

![image3_ce655bb850.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/image3_ce655bb850_f72686daea.webp)


Subs, Bits, and Ads: Everything you need to know

One of Twitch’s most popular forms of payment is subscriptions, also known as “subs”. Subscriptions cost $4.99 for viewers and give them special perks.

In some regions, Twitch has set special prices for subs. The idea behind this is to adapt to the different purchase power all over the world. Make sure you check the Local Subscription Pricing so you can inform your viewers accordingly.

Fans that subscribe to their favorite Twitch streamer will be able to utilize ad-free viewing and emotes can only be used by subscribers. Each subscription will last a month and then will have to be renewed.

Having specialized emotes that viewers can use within Twitch after they subscribe to you helps add that unique feel to your stream. It allows you to leave your mark on Twitch. 

Subscriptions can be utilized in multiple ways, whereas players will do subscription-only games or different challenges with their viewers to earn subscriptions from them.



Subs: What are they and what do they do for you?

If you really want to support your favorite streamer, you can gift multiple subscriptions, which will be given to other viewers. These subscriptions will not renew at the end of the month.

Make sure to take into account though, that Twitch does take a portion of the subscription payment. You will not get the full amount that was spent on you.

![image5_1abd77ae59.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/image5_1abd77ae59_6487710e6b.webp)

Viewers can also gift tier 2 and tier 3 subscriptions for additional perks, they just cost a bit more.


Gifting Subs and Sub Tiers

Twitch is part of Amazon, and there are a bunch of deals that both viewers and streamers can take advantage of. Every Amazon Prime account grants a free “Prime-Sub” to use.  So, if you are in the business of streaming, you might want to remind your audience that they can sub to your channel for free if they have Amazon Prime.

You must make a habit out of this since Prime Subs don’t renew every month automatically. Your viewers need to re-sub manually using their free Prime-sub every month.

Furthermore, if you see that your audience is interested in your gear, you can sign up for Amazon’s Associates Program. This program allows you to share Affiliate links to promote some products, like the ones you use on your set-up, and earn a commission for those sales.




Amazon Prime and Amazon Affiliate links

It is wise to incentivize your viewers to sub, setting up goals to reach. This way they will feel part of your progress and, at the same time, get something in return. How to set up sub-goals? Well, that is something that you should analyze depending on the stage of your channel.

As a general rule, it is better to set up multiple subsequent small goals that an enormous one. If the goal is reachable in the short term, viewers will be more incentivized to subscribe.   

![small_image1_354829adc1.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/small_image1_354829adc1_e2d4e8528e.webp)

If you have an established audience and want to go big, you can think of a “Subathon”. Subathons are special events with special rules like time incentives for each subscription and specialized goals.

Every subscription in a subathon will add extra time to your stream, with a series of sub-goals with challenges and a larger goal at the end. That larger goal could be something like “shave your head at 500 subscriptions”, or anything else that seems unique to you and your community. 

Overall, just try to stand out and do something different from other streamers. Just make sure you don’t go against Twitch's terms of service.

Sub-Goals and Subathons

Another form of revenue that Twitch has on their platform is “bits”. Bits are a form of payment that viewers can give their favorite streamers.

Bits do not provide as big of a perk for subscribers, other than a text-to-voice that comes along with their bits notification, but Twitch does not take a cut from the bits you earn.

![image6_6516726932.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/image6_6516726932_a8cc82c66f.webp)

Each bit is worth a cent, so when someone gifts 100 bits, the streamer gets a dollar. Top bits gifters will receive a badge within the chat that allows them to show off how many bits they have gifted.

Bits: What do they do and how to use them!

Another easy way to earn money through Twitch is through ads. Ads offer an incentive where a streamer can play more ads for more money or fewer ads for less money.

On top of the usual revenue that playing ads give, Twitch currently has an Ads Incentive Program. This program sets up goals for streamers to achieve stated in ads per hour. 

![Twitch ad program.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/Twitch_ad_program_ad28670124.webp)

Each streamer gets a different deal depending on their size. Upon fulfilling the goals, the streamer will earn a small bonus on top of the regular money for the ads rolled.

This all depends on the streamer and how often they want to play ads. The amount they pay their streamers varies by the size of the creator but is not a whole lot.

A Twitch partner will take a larger cut from ad revenue than an affiliate would receive. 

Make sure you balance how many ads you play and that you have control over them. For example, a good practice is to roll ads in between games, or in parts of your stream that aren’t prime content. This way your audience won’t miss the best part of your content and will more likely support you.


Ads: Run them during your stream and make some dough!

All your subs, ads and bits money will add up to your Twitch account balance. Twitch offers various payment methods for you to choose from. However, you need to remember that for a payment to be processed you need to reach the minimum threshold.

To claim Twitch payments, you need a $100 minimum balance to cash out. Recently, Twitch has lowered the amount to $50 for some creators in Argentina, Italy, Japan, Mexico, Spain and Taiwan (Twitch says more countries will be added to the list through November).

How to collect your Twitch money

The revenue stream does not stop there. Softwares such as OBS or Streamlabs OBS have also integrated their own donation system. This allows viewers to donate a specific amount of money that goes directly to the streamer.

There is no percentage taken from twitch with these donation alternatives. The streamer gets to walk away with all of it, minus the payment processing fee (~3%).

![small_image2_dd9b971684.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/small_image2_dd9b971684_8809a0d9d3.webp)



Donations: Another form of payment for creators!

Revenue income isn’t exclusive to everything listed above. As you start to grow as a creator, you will find yourself making money in various other ways.

A popular way that bigger streamers will gain income is through brand deals. A brand deal is when a specific company will pay a creator to advertise their product for them.

The larger your numbers are, the more a company may pay you. This is an easy passive form of income that streamers can utilize to help grow their finances. Make sure you have a presence on other social media platforms for brands to notice you!


Brand deals and more!

Do not let how much you are making or how much other creators are making on Twitch discourage you. There is no competitive race in the content-creating world. We are all working at our own speed, and there is nothing wrong with that.

If you focus on delivering high-quality, entertaining and engaging content, in the long run, people will notice and support you. Work hard, and the money will come. 

Final Thoughts: Money is not everything!

Start Earning Money Streaming on Twitch

Nowadays, everyone is looking to find a career streaming on Twitch. The popular platform, which reported 7.5 million streamers within its database in 2021, has seen an influx in numbers recently.

large_image4_1d9565ca63-2.webp

medium_image4_1d9565ca63-2.webp

small_image4_1d9565ca63-2.webp

thumbnail_image4_1d9565ca63-2.webp

image4_1d9565ca63-2.webp

Nowadays, everyone is looking to find a career streaming on Twitch. The popular platform, which reported 7.5 million streamers within its database in 2021, has seen an influx in numbers recently.

Some streamers are making thousands of dollars a month playing video games with hundreds of viewers. But, just how easy is it to achieve that high amount of viewership?

Looking to grow your Twitch? We have got you covered.

When beginning your streaming journey, there are always those first moments of trying to figure out how to set everything up. What software do you use? How do you add overlays? These questions can easily stress you out if you do not know what you are doing.

First off, every streamer needs software to go live. Popular streaming softwares include OBS, Streamlabs OBS, and Streamelements OBS. Although each version of OBS has similar integrations, each still has features unique only to itself.

For basic information, these tips should apply to all three of these softwares.

Starting out on Twitch: The basics

Every stream needs its own overlays. If you are not familiar with what an overlay is, they are the pieces of artwork scattered throughout the screen on a stream. This could include a webcam overlay, a sponsor overlay, social media overlays, and more.

Overlays are an easy way to pull in viewers. Streamers with eye-catching overlays tend to grab the attention of people scrolling through Twitch. People want something that grabs their sites easily.

![twitch-prime-themes.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/twitch_prime_themes_2aadafe356.webp)

Most overlays can be made in editing softwares such as photoshop, but if you are not an editor, you can always find some for cheap on sites like Fiverr.

After getting your overlays, all you have to do is click on "add image" within obs. This will redirect you toward your files, and you can click on your overlays from there. You then can size them to your liking.

Overlays: How to use them

When scrolling through Twitch, one of the major deciding factors in whether someone clicks on your stream or not is a webcam. People love to be able to see your face when watching your stream.

This creates a more personable and enjoyable experience for both the streamer and the viewer. Inexpensive webcams such as the [Logitech C920](https://www.amazon.com/Logitech-Widescreen-Calling-Recording-Desktop/dp/B006JH8T3S?source=ps-sl-shoppingads-lpcontext&ref_=fplfs&psc=1&smid=A168SXAFD6K1OK) on Amazon for around $60 USD.

![amazon-webcams.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/amazon_webcams_c333b8b0bb.webp)


After buying your webcam, all you have to do is plug it in and click the "add video streaming device" on your version of OBS that you have.


Webcams: Be sure to have one!

When getting ready to go live, you must first think about what your stream is going to be about. To be successful as a streamer, you have to make yourself stand out. Finding your niche is just as important as actually going live.

![ninja-twitch-streamer.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/ninja_twitch_streamer_4199375ef0.webp)

Are you a pro player looking to show off your high-skilled gameplay? Or are you an entertainer who plays casual games while attempting to make others laugh? These are questions that should be in the mind of every streamer when starting out.

Each unique part of your niche will help grab the audience you need to build your community.


Getting started: Find your niche

To grow an audience and turn it into a community, you need consistency. This consistency could come in many forms. A good way is to set up a content calendar. This way, people can expect to find you live on certain days or hours.

Moreover, you should consider streaming for not less than three hours at a time. [Alkali](https://twitter.com/alkali_layke), a well-known community manager and social media marketing expert, recommends it for the following reasons.

During the first hours, you will have your regular and loyal viewers. Then, after the second hour, you will start to be discovered by other people. This might not turn into a direct follow. People want to know you before following. What's more, it's essential that you build some viewership for that to happen, sometimes, viewers are afraid to stand out and would be more likely to join if there is a mass.

"Not everyone likes a spotlight so sometimes it's awkward for anyone who likes to blend in to join a group of fewer than ten people because their presence is noticed. You'll see more people join your stream when more people are watching. Hence, why you need to get past 2hrs." ([source](https://twitter.com/alkali_layke/status/1431758046905077761))

How long should you stream?

So, streaming is cool, but that content is only live when you are live. To successfully grow your Twitch career, it's a must that you have a presence in more than one social network. Every content creator is different but here you have some tips to take the most out of your content.

Whenever you finish a stream, try to do a short recap and clip any highlights or epic moments. Then you can post them on Twitter or as a short / reel on YouTube or Instagram. This way, you are promoting yourself on multiple platforms without needing to create extra content.

Insert Tweet with a Highlight play (don't want to put a Hearthstone one)

Furthermore, to increase your discoverability, you could post on YouTube parts of your streams. Depending on how much effort you want to put into this, you have different alternatives. You can:

-   Edit and post a cool game you had

-   Go over a guide you made or a series of tips

-   Prepare a topic to cover on stream and deliver it as if you were recording for YouTube

This way, once again, your content will transcend the stream and not die when you turn off your computer.


Be present on more than one platform

Once you have established yourself, a good way of growing is trying to interact with other creators. You don't need to get DisguisedToast or Ludwig, aim for someone your size and be a part of their community so they can be a part of yours too.

Doing co-op streams, videos or simply interacting on social media will expose you to a brand new audience. You can even go out of your comfort zone and look for streamers that play other games within a similar category. Rarran is a great example of that.

Rarran's YouTube video feed featuring several content collaborations with other creators from different games


Network and be a part of the greater Twitch community

Sites like Twitch have multiple features within their integration that allows streamers to create a more fun and pleasant experience for their viewers. One of these integrations is Twitch's channel points feature.

Channel points are a unique feature that allows viewers to gain points within their favorite streamer's channel by having a high watch time. The streamer can then create rewards that viewers can spend their channel points on.

![twitch-channel-points.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/twitch_channel_points_48386cbd20.webp)

People can spend points on anything you choose. Examples are song requests, game choices, and more. You can also hold predictions, where people can predict on whatever you choose with their points. If they win, they gain points and lose them if they lose the prediction.

The channel point rewards setup is located within your dashboard on Twitch. Head there to add your newest incentives to help give your viewers the best experience possible when enjoying your stream.



Adding features like channel points in your stream to grab more viewers

When streaming, the most important thing a streamer can do is have fun. If you are miserable on stream, your viewers will be miserable too.

Streaming is a tough industry, and there will always be ups and downs. The streamers that take those low moments and let that fuel their excitement for getting better are the streamers that set themselves apart from others.

![twitch-streamer.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/twitch_streamer_910b312a27.webp)

Find what game you enjoy instead of playing whatever is popular. If what is popular is the game you enjoy, then even better.

Good luck and maybe you will be the next big Twitch partner.

The final rule: Have Fun!

Growing your Twitch: How to gain more viewers

Take content creation to the next level and make a name for yourself with our 5 tips to improve your content and grow your following.

small_1591392927751-5 tips.png.jpeg

thumbnail_1591392927751-5 tips.png.jpeg

1591392927751-5 tips.png.jpeg

small_5tips.webp

thumbnail_5tips.webp

5tips.webp

5 Tips to Improve Your Content and Grow Your Following:

1. Learn basic video editing skills through YouTube
2. Establish your personal brand
3. Follow a schedule, be consistent
4. Market your content on social media
5. Network and Collaborate

Whether you’re a streamer, YouTuber, ASMRtist, or you just like sharing clips to socials, everyone knows that content is king. Consistently creating and properly distributing content can be a hard and time consuming task, but the payoff is well worth it when you begin to see growth and pass milestones one by one. Below, we will dive into 5 tips you can use to improve your content and grow your following. While these are only a few of the many ways to go about doing so, these pieces of advice can take YOU to the next level.

In an ideal situation you would have your very own video editor, but many of us aren’t able to afford that, nor is it necessary when you’re only starting to create content. Fortunately, YouTube is filled with hundreds of helpful tutorials no matter your prior video editing knowledge.

As for editing software, look no further than DaVinci Resolve 16, a FREE to download program with an easy to use interface and all the capabilities of Adobe Premiere Pro, which is what most high-level video editors use. While at first glance the program can be daunting, it only takes a couple tutorials to get a good grasp of the essentials. 

Once you have the basics down, adding things like cut-scenes, transitions, intros, outros, and tweaking the audio can make a world of difference in the final product. All in all, the time you put into editing your content can switch someone from just passing by, to clicking on that link and subscribing. 

#1 Learn basic video editing skills

Establishing your personal brand is what makes people remember your name and more importantly, YOU. The first step here, one that you probably completed years ago, is creating your alias or deciding to go by your actual name. Creating an alias can be fun, but be sure to make it something memorable and appropriate...no mom should ever have to hear her son or daughter say “I want to watch PoopyIdiot247’s stream”. While it’s best to keep it simple, it’s also ideal to have the same username across all socials, so you do have to be creative when landing on a name because most will already be taken. 

Now that you’ve decided on your alias or name, you’ll need a logo to give it an identity. Whether you want a mascot logo, a text logo, or just a letter, that’s up to you, but you may need to shell out some cash to get one professionally made. There are a lot of talented graphic designers in the industry that create beautiful logos at prices ranging from $50 all the way up to $500+, but spending the money for your own personal brand is something you will need to do at some point, so you might as well establish your branding now. That way, your audience will always remember you as you continue to grow.

#2 Establish your personal brand

Consistency is key when it comes to streaming and producing content. While the scale is much different, the biggest streamers can lose out on thousands of subs and followers by taking a couple days break. This isn’t to say that you have to stream or produce content everyday, but a schedule certainly does help, and there should be a healthy balance. Even if you are only able to stream for say 8 hours a week, decide that you will stream 2 hours on Monday and Wednesday, and 4 on Friday, and let your followers know this. One way you can do this is by adding a Streamlabs Stream Schedule & Countdown to your stream, which only involves a few steps.

Consistency isn’t only needed when it comes to actually producing the content though, you also have to be consistent with who you are and the community you wish to create. Unless you’re so good that people will watch just for the pure skill, your personality is what gets people to come back and become lifelong supporters. Be true to yourself through everything you do, and be careful to not let the clout get to your head if you do begin to take off.    

#3 Follow a schedule, be consistent

Unfortunately this will be hard to hear for some, but social media should be your best friend if you want to grow your stream and following. Growing your stream and socials go hand-in-hand and only pursuing one can leave some serious growth on the table...but most of you already know that. What’s hard is being active on your socials, and knowing what to post and when to post it. This can become time consuming. While eFuse may be working on some tools to make this process easier, your best bet is to avoid spreading yourself too thin, and instead heavily focus on one or two social media platforms. While eFuse is a given, Twitter, Instagram and Facebook are the most popular platforms in terms of what socials you should be on for gaming and esports related content specifically. 

Now, what kind of content should you post to these socials? If you said “just post your stream link”, unfortunately that generally isn’t very effective, although done way too often. Give your followers a reason to engage with your stream link posts by including a short 15-30 second clip from a previous stream, a meme that you find funny, or even a brief explanation of what your stream is all about. Think of Youtube, everyone recognizes how click baity thumbnails can be, and that’s just what your social posts need, some clickbait. No, you don’t need to type out “INSANE CRAZY AMAZING STREAM 1V4’S ONLY”, but including a Call of Duty graphic or GIF might be just what the timeline needs. 

Good stream promotion:
![Screenshot (4).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/Screenshot_4_51064d5c48.webp)
 

Bad Stream Promotion:
![0497a3e73ae33dae726c6867849c350a.webp](https://efuse.s3.us-east-1.amazonaws.com/cms/0497a3e73ae33dae726c6867849c350a_bad9864224.webp)


#4 Market your content on social media

While consistency and patience is almost always needed to make it as a content creator, networking and collaborating will give you the best chance to “growth-hack” your way towards the top. While it’s not easy, properly networking can open up opportunities that would be quite hard to stumble across alone. The key to networking is making genuine connections with people who share similar interests and similar goals with you. Other content creators should not be seen as competition, but instead as friends that you can meet along the way and maybe even collaborate with. Collaboration is not only a good way to network and make new friends in which you can learn from, but it also helps both creators as their audiences are introduced to one another.

So how do you network as a content creator? Well, there’s a number of ways but most come down to interacting and engaging with the community, usually through social media. Instead of spending that 2nd hour in a row watching TimTheTatMan fail to identify states from cities, spend an hour stepping into small and mid-tier streams, and make some new friends. Instead of mindlessly scrolling through Twitter, search #esports and reply to the first 10 tweets that come up. Don’t sit back, get involved. Connect with people on LinkedIn, follow people on eFuse, Twitter, and Instagram. Don’t worry about your following to follower ratio, being an active member of the community is what it’s all about.

#5 Network and Collaborate

While you may have already known some of this, hopefully you still found value in our 5 tips to improve your content and grow your following. Have any questions about esports, the gaming industry, getting a scholarship, or getting a job in gaming? Tweet us with #eFuseLearning for a chance to have us answer it here.

Final Thoughts

5 Tips to Grow Your Following on Twitch

As a streamer, there are a handful of ways to earn income. As I’m sure you know well. Often it can be confusing to understand what needs to be reported on your yearly tax return as income. 

large_kelly-sikkema-xoU52jUVUXA-unsplash.webp

medium_kelly-sikkema-xoU52jUVUXA-unsplash.webp

small_kelly-sikkema-xoU52jUVUXA-unsplash.webp

thumbnail_kelly-sikkema-xoU52jUVUXA-unsplash.webp

kelly-sikkema-xoU52jUVUXA-unsplash.webp

As a streamer, there are a handful of ways to earn income. As I’m sure you know well. Often it can be confusing to understand what needs to be reported on your yearly tax return as income. The short answer is — all of it. However, I know there are plenty of conversations circulating about whether some income, such as donations or “tips”, really need to be reported. To be honest, it’s a fair question considering there are few educational pieces out there. Unless you’re working closely with a CPA, it can be hard to understand what’s the true answer. Hopefully, this article will tackle some of the lingering questions & provide context to help you better understand **why donations are 100% taxable income for streamers.**

Overview

As you may hear from your fellow streamers & gaming community, there is a belief that donations/tips don’t need to be reported as taxable income on your tax return. The common viewpoint/argument is because they are called “donations”, so people consider them to be “charitable”. Unfortunately, this isn’t the case at all. Nor would it hold up during an audit by the IRS — if that were to happen to you.

To set the stage for examining this in the streaming world, let’s talk about how we would traditionally think of donations. Let’s also assume it’s a qualified charitable transaction where all requirements for it to be considered charitable are met. The donor, the person donating money to the organization, can “write-off” that donation on their tax return — up to a certain threshold. For us in the streaming world, think of it as the viewers in your channel.

The organization receiving the donation, isn’t taxed on this income because they are either a nonprofit or qualified organization. For us in the streaming world, we tend to think that would be the streamer. However, this is where the misconception begins.

Are Twitch Donations Taxable?

To not be taxed on income from “donations”, you must be a select organization. Those select organizations must meet specific requirements to be considered a “qualified organization” in the eyes of this IRS.

If you don’t fall into the category of a nonprofit/charity or qualified organization, you get taxed on almost any income you might consider to be “donations” and/or “tips”.

[Here’s the official guidelines straight from the IRS website](https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions) regarding who is considered a qualified organization. However, because that can a boring and confusing read, I’ll break it down.

A streamer is streaming to receive compensation for the entertainment they are putting on — playing video games, being funny etc. They are not streaming for charitable purposes. Therefore, a “donation” doesn’t act in the same way we picture a donation in the traditional world. Though the terminology sounds the same. Streamers take that “donation” from their viewers & personally financially benefit.

When a qualified nonprofit organization receives a donation, that money is not used for personal financial gains. This is why they are a charity — they are using funds received to help someone or something, without their interest in mind.

Which is why they don’t get taxed on that income.

To further support the argument & make the line very *clear* as to who counts as an organization who doesn’t have pay taxes from donations, let’s look at this [description from Investopedia](https://www.investopedia.com/ask/answers/08/nonprofit-tax.asp) — 

 > “A [nonprofit organization](https://www.investopedia.com/terms/n/non-profitorganization.asp) is an organization that engages in activities for both public and private interest without pursuing the goal of commercial or monetary profit.” 

In simpler terms, what I said above. They don’t take the donation and personally financially benefit from it.

Further the article reads.

>“To be exempt from federal taxes, nonprofit organizations have to meet certain rules.”

The important words here are “to be exempt from federal taxes”. Which is what we’re all wondering and trying to better understand, right? Do streamers have to pay taxes on “donations” from viewers? Let’s keep going — 

Two of those rules are the following (still quoting from Investopedia) — “Be organized and operated exclusively for charitable, scientific, religious, or public safety purposes.” AND “Collect income and turn over the entire amount (minus expenses) to organizations or individuals who are lawfully recognized as legitimate charities.”

Of which a streamer does neither.

IRS Qualified Organizations

Now, I know that was quite a bit of information and can possibly be difficult to swallow. Hopefully, I broke it down enough & pointed out the important parts that provide context to your understanding & education.

To bring it full circle it’s as simple as this — A streamer is streaming & working to receive “donations” and/or “tips” from their audience (viewers, subs etc.). You’re essentially an entertainer. You’re going to take that money and use it for your own personal benefit. A **true** charitable & qualified nonprofit is **not** going to take that money and use it for their own personal benefit.

That’s why they don’t have to pay taxes on donations received. Plain and simple.

If that money is going to be used for personal gain it cannot be considered a real donation and it does not qualify as nontaxable income.

Unfortunately, 99% of the time streamers use donations for personal gain. It’s considered taxable income that **every streamer must report on their tax return.**

Disclaimer: *None of the information above is intended as financial or tax advice in any way, shape, or form. Everything is for educational purposes only. Every individual has a different situation & should appropriately seek a professional for guidance.*

WRITTEN BY

[Juan Rodriguez, CPA](https://efuse.gg/u/lodgz)
Gaming, esports & content creator CPA. Founder of Lodgz Financial.

Are Twitch Donations or Tips Taxable for Streamers?

 As a streamer, it’s best practice to open a business checking account for all streaming related transactions.

large_jonathan-cooper-0O2Pp6-mOkY-unsplash.webp

medium_jonathan-cooper-0O2Pp6-mOkY-unsplash.webp

small_jonathan-cooper-0O2Pp6-mOkY-unsplash.webp

thumbnail_jonathan-cooper-0O2Pp6-mOkY-unsplash.webp

jonathan-cooper-0O2Pp6-mOkY-unsplash.webp

The basis to keep in mind while reading this article is — As a streamer, it’s best practice to open a business checking account for all streaming related transactions.

You may have heard the phrase before — “It’s important to separate business & personal”. Or, maybe this is your first time hearing it. In either case, it’s an important principle that should be at the business foundation of any content creator.

So what does that phrase really mean? It’s a short & simple way of saying that anything you do in the course of your business (streaming), from a financial perspective, needs to be separate from what you do on a personal basis. A simple example would be this — buying a new pair of kicks with your business debit card. I’m willing to assume that purchase most likely has nothing to do with your stream. So, you wouldn’t want that purchase to be charged to your business debit card, which in turn pulls money from your business checking account. You’d want to make that purchase with your personal debit card, which in turn pulls the money from your personal checking account.

Now, you might be thinking, “I don’t even have a business debit card/checking account. I only have one bank account that everything goes through”. No worries, that’s the point of this article — to help you better understand why you, a streamer, should have separate accounts. As well as how to go about creating this separation.

Let’s dive into it. There are really two main reasons to separate business & personal — for financial & legal purposes. I’ll touch lightly on the legal implications, but for the most part I’m going to focus on the financial perspective.

Why Streamers should Separate Business & Personal

Let’s briefly knockout the legal reasoning. When you go to open a new business checking account, the bank will ask whether you’d like to open the account under a business entity, such as an [LLC](https://www.investopedia.com/terms/l/llc.asp), or under your personal name. When you’re doing it 100% the correct way, the best practice is to open the account under an entity you’ve created. For many streamers that should be an LLC. The reason behind this is to protect [your personal assets](https://www.investopedia.com/terms/a/asset.asp#:~:text=An%20asset%20is%20a%20resource,or%20benefit%20the%20firm%27s%20operations.) (car, house, money in personal checking account, anything else of value you own) from debt or lawsuits. If you don’t operate under an LLC, your personal assets are at a much higher risk of being taken in the case that business debt or a lawsuit were to occur. I’ll dive deeper into legal implications in a later article. But, back to opening the bank account. Even if you open a new business checking account under your name, you’re still beginning to create separation between your business & personal transactions.

After you’ve opened your new account, you’ll be given a debit card that goes along with that account. This becomes the card you’ll use when making any purchases related to your stream. Purchases such as a new gaming PC, headset, camera, chair etc. All purchases that count as **business expenses**. This is important because it provides an easy way to keep track your [deductions](https://www.investopedia.com/terms/t/tax-deduction.asp) throughout the year. Deductions help lower the amount of taxes you pay each year. Definitely something worth paying attention to!

Another important piece of your new business checking account is having all your income from streaming get deposited there. That’s right, you’d want all your income to get deposited & processed through this account. Now you might be asking, “If all of my income from streaming gets deposited into my new account and I can only use this account for streaming purposes, how am I going to use any of this money for personal things?”. Great question. Best practice would be to have your personal checking account open at the same bank your business checking account is. That way, you can transfer money (typically for free) you’d like to spend for personal things to your personal checking account. Which usually is done within seconds via the bank app. You typically have both accounts pop up when opening your app. 

With all that being said, here is the key reasoning behind it all. Your new business checking account is now processing all transactions strictly related to streaming. Whether that be income deposited in the account or purchases made from the account, as mentioned above. 

Legal Reasoning

You are now actively practicing separating business from personal & are better organizing yourself from a financial & legal perspective. Let’s wrap up with some tax benefits. 

Having all of your streaming transactions occur in only one account helps you & your accountant when you get to tax season. Instead of spending hours reading through your personal bank statements to decide what transactions did or should count as business income/expense, you’re looking at it all in one place. As long as you’ve practiced good habits throughout the year, everything in this one account is streaming income/expense related. While it sounds super simple, I promise your accountant will be thanking you when it comes time to file your tax return. 

When working with an accountant, it also makes it easier and more stress-free from your perspective. You won’t be getting a dozen calls/texts asking if a transaction from 8–9 months ago was streaming related. Which, if you’ve forgotten, could result in a loss of a business deduction. Because again, everything they see in that account should be related to streaming — so there shouldn’t be many questions for them to ask. 

When you mix business & personal transactions together, you’re doing what is called “[piercing the veil](https://www.thebalancesmb.com/piercing-the-corporate-veil-definition-398410)”. This means you can be held liable from a financial & legal perspective as one “entity”. Though it sounds very corporate & boring, I promise it’s not something you want to expose yourself to if the situation were to arise. 

Now, you just got done reading and might think, “This seems like a long & tedious process”. I promise it isn’t! The easiest way to get started is to open a business checking account with your bank & begin to create separation. As a streamer, you owe it to yourself. 

Disclaimer: *None of the information above is intended as financial or tax advice in any way, shape, or form. Everything is for educational purposes only. Every individual has a different situation & should appropriately seek a professional for guidance.*

Tax Benefits For Streamers

Personal & Business Finances for Streamers

For streamers specifically, it can be extremely easy to fall victim to not building strong credit. Think about it — there’s a good chance you probably run your stream from your parents house.

large_avery-evans-RJQE64NmC_o-unsplash.webp

medium_avery-evans-RJQE64NmC_o-unsplash.webp

small_avery-evans-RJQE64NmC_o-unsplash.webp

thumbnail_avery-evans-RJQE64NmC_o-unsplash.webp

avery-evans-RJQE64NmC_o-unsplash.webp

Growing up, it seemed as if there was always a negative stigma towards credit cards. Personally, nobody really took the time to sit down & talk to me about what separated a debit card from a credit card — it almost seemed mysterious. Maybe you have or are currently experiencing the same as I did. In my personal & professional experience, it’s a major issue. It’s a topic that needs to be spoken about more & that’s what I’m here to do. 

To kick it off let’s quickly explain what each is at a basic level. A debit card is essentially like having cash. Every time you swipe your debit card at a store, you’ll notice it will automatically withdraw money from your bank account. For example — you go online to purchase G Fuel and your total is $100. If you make that purchase with your debit card it will almost instantaneously remove $100 from your bank account. 

In contrast, a credit card operates a bit differently. Instead of pulling money directly from your bank account, a credit card will post charges to your credit card statement. For example — you purchase $100 worth of items from the item shop on Fortnite during the entire month. Each charge will individually get added to your total credit card statement & at the end of the month your total will be $100. Throughout the month no money was withdrawn from your bank account but instead, you pay $100 at the end of the month once your statement becomes due. In simpler terms, it delays money getting withdrawn from your bank account.

So, what’s the big deal with credit cards & why does there often seem to be a negative stigma around them? Let’s discuss.

Debit vs Credit Cards

One example might be this — if you’re late paying your credit card statement (i.e. you don’t pay when the statement is due) you can be charged a late fee. Additionally, if you carry an unpaid balance on your credit card from month to month, not only can you be charged a late fee, but you can be charged an [interest fee](https://www.investopedia.com/terms/i/interest.asp) on the balance you owe. For example — you haven’t paid your $1000 balance at month end and your interest rate is 20%. Because you’re late on your payment you could be charged an additional $200 ($1000 X 20%) for not paying what you charged to your card. So, instead of $1000 being withdrawn from your account for what you actually bought, you have to pay an additional $200 for interest. 

You might be thinking it makes complete sense why your parents don’t want you to have a credit card. Why deal with the issues above when a debit card doesn’t expose you to these risks? That’s a great question. And specifically, **I think what I’ll discuss next is most important for streamers to learn about. **

Negative Stigma Around Credit Cards

Debit cards **do not allow you to build credit**. In comparison, credit cards allow you to build your credit. Credit is what helps you later qualify for home purchases (mortgages), car financing, business loans, lower insurance rates & much more. Without a strong credit score & credit history, the examples listed above become obstacles. 

For streamers specifically, it can be extremely easy to fall victim to not building strong credit. Think about it — there’s a good chance you probably run your stream from your parents house. You probably aren’t paying rent, utilities, wifi or any large costs. Who could blame you? You earn a higher profit and have your parents support. I totally get that. 

However, combine not being responsible for any large costs with strictly using a debit card & you can actually hurt yourself in the long run — **you’ll have little to no credit history**. When it comes time to buy your own house or finance a new car purchase, you could be unintentionally creating barriers. This is because the bank or car company (known as the lender) could see you as a risky customer. Consider the fact that most institutions don’t understand streaming or how it works & you could find yourself in a sticky situation. The last thing you want to do is hold yourself back at a moment in your streaming career where you’re trying to move forward!

The largest risk with credit cards is falling behind on multiple payments which can lead to credit card debt. I wanted to be sure to include this in the article because it is a serious scenario. However, credit cards have tools that can help you avoid this. For example — many credit cards have an “auto-payment” option. Basically, every time you use your credit card it will automatically withdraw money from your bank account for that purchase instead of waiting for the end of the month to pay the entire balance. This makes it acts very similar to a debit card. The difference is, **you’re still building your credit**.

If you learn anything from this article understand that while credit might not be something that immediately impacts your life, it will become an important factor as you become older and grow your career. 

Building Credit

The last important element I wanted to add to the conversation is — security of your money.

If you only use a debit card you increase your chance of financial theft having a direct impact. As I mentioned at the beginning, debit cards operate like cash (sometimes referred to as “checkcards”). If your debit card were to be stolen, that person has direct access to the money sitting in the bank account connected to your card. In contrast, if your credit card is stolen & used, that person does not have direct access to your funds. All upfront payments go through the credit card provider — not you. So, in the case it is stolen, the credit card company will directly investigate the case without money missing from your bank account. With a debit card, though it can still be investigated & resolved, money is directly withdrawn with each purchase the theft makes. Which could leave you with a large chunk missing in the bank & create financial issues if you have bills/purchases coming up.

Another way to add a layer of security is to create a personal & business checking account. If you lose the debit card connected to your personal account, the money in your business account is safe. Only the money connected to your personal account would be at risk. Here’s [an article I’ve written](https://efuse.gg/sidekick/resources/finances-for-streamers) that deep dives into separation of personal & business if that topic interests you!

Security of your Money

To wrap this up, the choice of debit & credit cards is completely a personal decision. However, it’s generally best practice to utilize both a debit & credit card. If you’re a young streamer, maybe begin to make small purchases with a credit card (such as groceries) until you feel more comfortable. Doing so will begin to create your credit history. 

I’ll add this — picking a credit card can be overwhelming. There are lots of different credit cards that offer different benefits, features & terms. If you have questions about which best suites you, utilize an accountant, financial professional or parent.

The key points to take away from this article are — 
1. Understanding the difference between a debit card & credit card
2. Understanding that while credit cards have risks they also have important benefits
3. Understanding how to keep your money better secure. As a streamer, these are all important factors to keep in mind as you grow in your career!


**Disclaimer**: *None of the information above is intended as financial or tax advice in any way, shape, or form. Everything is for educational purposes only. Every individual has a different situation & should appropriately seek a professional for guidance.*

Debit & Credit Cards - What's Ideal for a Streamer?

While we can’t all have weekly yoga sessions with our squad, there are things you can do to maintain healthy gaming habits as you grind it out with your friends or participate in your own gaming sessions. 

large_rahul-kashyap-1KHnvXsKQxY-unsplash.webp

medium_rahul-kashyap-1KHnvXsKQxY-unsplash.webp

small_rahul-kashyap-1KHnvXsKQxY-unsplash.webp

thumbnail_rahul-kashyap-1KHnvXsKQxY-unsplash.webp

rahul-kashyap-1KHnvXsKQxY-unsplash.webp

It’s no secret that becoming the best at any particular esport requires a massive time commitment. We commonly refer to it as “The Grind” with a bit of pride whenever we talk about it. That we’ve put so much time into this one game that we are better than 99% of the rest of the game-playing population.

When asked how to make it to the pro level in esports, many pros will say you just have to “grind it out” like they once did. While there is truth to this—becoming a pro requires that time investment—what isn’t added in is that you also need to stay physically healthy while you work your way to the top.

In a recent study on [The Association between Esports Participation](https://www.mdpi.com/1660-4601/17/19/7329/htm), Health and Physical Activity Behavior*, researchers found that esports players were more likely to be categorized as normal weight or obesity class 2 and 3. But they further went on to observe that those players ranked in the top 10% were more active than the bottom 90% of players.

At the professional level, this tracks with the empirical data that we’ve seen. Esports organizations around the world prioritize healthy living for their players. In LCS, we have players who work out four to five times a week. Other organizations, such as CLG, have been known to hold weekly yoga sessions with their players.

Professional esports organizations have realized that they want their players to be healthy. A healthy player is likely to have a longer career; a healthy player with a longer career is a much better investment for any esports org. 

While we can’t all have weekly yoga sessions with our squad, there are things you can do to maintain healthy gaming habits as you grind it out with your friends or participate in your own gaming sessions. 

[Career Spotlight: Dr. Dave Amirrezvani, Doctor of Physical Therapy](https://youtu.be/kLzRVVmsCrE)  


Four quick tips for healthy gaming

One, stretching regularly is an important thing to do if you spend all day at the computer. It’s easy to just queue up for the next game and completely forget about stretching. Instead, after two games take a quick five to ten-minute break and stand up and stretch. Since you’re gaming, make sure to do some hand, arm, and wrist stretches, too. This can help make sure you don’t develop [carpal tunnel injuries](https://www.nasef.org/news/blog/preventing-carpal-tunnel-syndrome/). If your friends just won’t wait for you, stretch while you load into a game.


Tip #1 Stretching

Two, physical activity. While the World Health Organization recommends 150 minutes of physical activity a week, not everyone can get there. Start small if you need to. Simple walks every day are a great place to start. After that, see if you can take it up a notch and go on a bike ride or a short jog. Everything will help. If you don’t like walking around in silence, queue up your favorite esports podcast or interview and listen to that on your walk.

Tip #2 Physical Activity

Three, minimize the amount of blue light you’re exposed to before you go to bed. Blue light has a tendency to mess your ability to sleep at night. Our everyday electronics are the biggest producers of blue light. Many computers and phones now have modes that will reduce the amount of blue light the devices put out during the nighttime hours. Use these features. If your computer doesn’t have one built-in, I’m personally a fan of [f.lux](https://justgetflux.com/). There are also other solutions like glasses that block blue light from your electronic devices.

Tip #3 Minimize Blue Light

Finally, try to keep a set schedule. This, more than anything, will likely help you maintain a healthy lifestyle. Professional esports organizations know the power of this and keep their players on strict schedules. That means you don’t stay up till 4AM on Friday because you don’t have to go to work the next day. Keep your schedule as consistent as possible.

Tip #4 Keep a Set Schedule

These four tips, stretching, physical activity, minimizing blue light, and a set schedule, are only the basics of maintaining a healthy lifestyle while gaming. But while they are the basics, they are a good start for many of us. So take a moment and stand up from your computer chair, do a few stretches, and get outside for some physical activity. Your body will thank you.

For more info on how esports organizations approach healthy gaming, check out our[ interview with Misfits Gaming Performance Coach, Robert Yip](https://youtu.be/JSTjP-ecG4o).

*Trotter MG, Coulter TJ, Davis PA, Poulus DR, Polman R. The Association between Esports Participation, Health and Physical Activity Behaviour. International Journal of Environmental Research and Public Health. 2020; 17(19):7329.




WRITTEN BY
[North America Scholastic Esports Federation](https://efuse.gg/organizations/show?id=5e714d08428fb9f14d38d1fd)

NASEF is bringing scholastic esports to high schools and community-based organizations across North America for FREE!

Our mission is to provide opportunities for ALL students to use esports as a platform to acquire critical communication, collaboration, and problem-solving skills needed to thrive in work and in life.

By using esports as a vehicle to meet students where they are, we're able to introduce them to the entire ecosystem that exists within the world of esports.

Four Tips to Maintain Healthy Streaming Habits

Each year, there are games that gain billions of watch time hours on the platform and rise in popularity, but have you wondered which are the top 10 most watched games on Twitch?

large_caspar-camille-rubin-DrL-cwqD6tM-unsplash.webp

medium_caspar-camille-rubin-DrL-cwqD6tM-unsplash.webp

small_caspar-camille-rubin-DrL-cwqD6tM-unsplash.webp

thumbnail_caspar-camille-rubin-DrL-cwqD6tM-unsplash.webp

caspar-camille-rubin-DrL-cwqD6tM-unsplash.webp

Twitch has become a go to destination to watch quality gameplay by some of the best players for each game. Each year, there are games that gain billions of watch time hours on the platform and rise in popularity, but have you wondered which are the top 10 most watched games on Twitch?

If you have, then that's exactly what we’re going to cover in today's article! This list covers games across all genres, so let's get right into it.

Twitch stats provided by [twitchstats.net](https://twitchstats.net/all-time-views/alltime)

Tom Clancy's Rainbow Six Siege is an online tactical shooter video game that was developed by Ubisoft Montreal and published by Ubisoft on December 1, 2015. The game's available to play on all current generation and new generation consoles. Each player plays as an attacker or a defender in different modes such as rescuing a hostage, defusing a bomb, and taking control of an objective within a room.

![1635969767212-images (62).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969767212_images_62_5663c664b9.webp)

Rainbow Six Siege is the 21st game in the Rainbow Six video game series that began back in 1998, with the release of Rainbow Six. With players such as King George, Beaulo, Pengu, Macie Jay and more streaming the game regularly on Twitch, the game maintains its popularity on the platform.

Since the release of the game, it has racked up almost 4 billion total hours in watch time on Twitch, the exact number is just over 3.999 billion.

#10 Tom Clancy's Rainbow Six Siege

Overwatch is a team-based multiplayer first-person shooter game that was developed and published by Blizzard Entertainment on May 24, 2016 for all devices. Overwatch is Blizzard's fourth major franchise and it sees teams work to complete map-specific objectives within a limited period of time.

![1635969785609-images (61).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969785609_images_61_6c400af3d3.webp)

Overwatch has many popular streamers such as Supertf, Jay3, Emongg, mL7support and many more that play the game on stream which has helped them accumulate a lot of watch time hours. Since the game's release in 2016, it has accumulated over 7.767 billion hours in watch time on Twitch.

#9 Overwatch

Minecraft is a sandbox video game that was developed and published by Mojang Studios in 2011. In the game, players explore a blocky generated 3D world with virtually infinite terrain, and may discover and extract raw materials, craft tools and items, and build structures or earthworks.

![1635969817229-images (30).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969817229_images_30_be0a0403e5.webp)

Depending on game mode, players can fight computer-controlled mobs, as well as cooperate with or compete against other players in the same world. Minecraft is one of the most played games of all time and has over 140 million monthly active users and is also the best selling video game of all time with over 238 million copies of the game having been sold across the world.

Some of the most popular Minecraft streamers on Twitch are TommyInnit, Dream, Quackity, GeorgeNotFound and Wilbur Soot. Minecraft has been one of the most played games for almost a decade. With such popularity, the game has been watched for over 10.072 billion hours on Twitch.

#8 Minecraft

World of Warcraft (WoW) is a massively multiplayer online role-playing game (MMORPG) that was developed and published by Blizzard Entertainment on November 23, 2004. It allows players to create a character avatar and explore an open game world in third or first-person view, exploring the landscape, fighting various monsters, completing quests, and interacting with non-player characters (NPCs) or other players.

![1635969839600-images (59).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969839600_images_59_a0b942702a.webp)

The game has won several accolades such as “Best Mac OS X Entertainment Product” at the 2005 Apple Design Awards and “Best Computer Game" by Computer Games Magazine in 2004. World of Warcraft has been able to bring in over 10.584 billion hours in watch on Twitch.

#7 World of Warcraft

Hearthstone is a free-to-play online digital collectible card game that was developed and published by Blizzard Entertainment in 2014. It's a turn-based card game between two opponents, using constructed decks of 30 cards along with a selected hero with a unique power.

![1635969855042-images (58).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969855042_images_58_aba1e8a7e7.webp)

Hearthstone has won many accolades such as being named the “best digital card game” of 2013 by Forbes, winning “best mobile/handheld game” at The Game Awards in 2014 and winning the title of “Mobile game of the year” by GameSpot in December 2014. The game has been watched for over 13.047 billion hours on Twitch.

#6 Hearthstone

Dota 2 is a multiplayer online battle arena (MOBA) video game that was developed and published by Valve in July, 2013. The game's played in matches between two teams of five players, with each team occupying and defending their own separate base on the map. Each player controls a character, known as a "hero", who all have unique abilities and differing styles of play.

![1635969872197-images (57).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969872197_images_57_a3147b9054.webp)

Dota 2 has a massive esports scene, with teams from around the world playing in various professional leagues and tournaments. Valve manages an event format known as the Dota Pro Circuit, a series of tournaments that award qualification points for earning direct invitations to The International, the game's premier annual tournament.

Internationals feature a crowdfunded prize money system that has seen amounts in upwards of US$40 million, making Dota 2 the most lucrative esports game. Since its release, Dota 2 has been watched for over 18.261 billion hours on Twitch.

#5 Dota 2

Grand Theft Auto V is an action-adventure game that was developed by Rockstar North and published by Rockstar Games in 2013. The game is set within the fictional state of San Andreas, and the single-player story follows three protagonists, retired bank robber Michael De Santa, street gangster Franklin Clinton, and drug dealer and gunrunner Trevor Philips.

![1635969898601-images (19).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969898601_images_19_37b6b25b41.webp)

With GTA Online and GTA RP only growing in popularity over time, more and more popular creators have started making content based around the game which has helped them gain more watch time hours on Twitch. Grand Theft Auto Online was conceived as a separate experience with up to 30 players being able to freely roam across the game world and enter lobbies to complete jobs (story-driven competitive and cooperative modes).

The game's considered to be one of seventh and eighth generation console gaming's most significant titles and among the best video games ever made and is the second best selling video game of all time. With all of that success, they've been able to net about 20.126 billion hours in watch time on Twitch.

#4 Grand Theft Auto V

Counter-Strike: Global Offensive (CS:GO) is a multiplayer first-person shooter that was developed by Valve and Hidden Path Entertainment and published by Valve on August 21, 2012. The game pits two teams, Terrorists and Counter-Terrorists, against each other in different objective-based game modes. It is the fourth game in the Counter-Strike series and has one of the most popular esport scenes in the world.

![1635969916330-images (56).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969916330_images_56_d31f25ff98.webp)

The professional scene consists of leagues and tournaments hosted by third-party organizations, and Valve-sponsored tournaments known as Major Championships. They're considered the most prestigious tournaments in the Counter-Strike circuit and have among the largest prize pools; originally at US$250,000, the prize pools for Majors have risen to US$1,000,000 since MLG Columbus 2016.
Counter-Strike: Global Offensive has been able to maintain its position as one of the most popular games in the world over the years and because of that they've had many players continue to play and stream the game on Twitch. Since the game's release, it has accumulated over 20.343 billion hours in watch time on Twitch.

#3 Counter-Strike: Global Offensive

Fortnite is an online video game that was developed and published by Epic Games in 2017. There are two main modes in the game, Battle Royale and Creative. Battle Royale is a player-versus-player game for up to 100 players, allowing one to play alone, in a duo, or in a squad. Fortnite Creative is a sandbox game mode in which players are given complete freedom to spawn everything that is within the game on an island.

![1635969930175-images (54).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969930175_images_54_1ad4c0e17a.webp)

Fortnite Battle Royale became a cultural phenomenon, with several celebrities saying that they play the game, and athletes using Fortnite emotes as victory celebrations. Epic Games has organized esports competitions around Fortnite Battle Royale, such as the inaugural $30 million Fortnite World Cup tournament that took place in July 2019.
The game has won several accolades such as “Best Game” at BBC Radio 1's Teen Awards in 2018, “Best Competitive Game” and “Ultimate Game of the Year” at the Golden Joystick Awards in 2018. With all of that success, Fortnite comes in with over 26.458 billion hours of watch time.

#2 Fortnite

League of Legends (LoL), is a multiplayer online battle arena video game that was developed and published by Riot Games. In the game, two teams of five players battle in player versus player combat, each team occupying and defending their half of the map. Each of the ten players controls a character, known as a "champion", with unique abilities and differing styles of play.

![1635969949218-images (51).webp](https://efuse.s3.us-east-1.amazonaws.com/cms/1635969949218_images_51_688b573c1e.webp)

It's often cited as the world's largest esport, with an international competitive scene composed of 12 leagues. The domestic leagues culminate in the annual League of Legends World Championship. The 2019 championship had over 100 million unique viewers, peaking at a concurrent viewership of 44 million.

The game has several accolades as well such as winning the title of “Best Free-to-Play Game” at the Golden Joystick Awards in 2011, and “Best Esports Event” at The Game Awards for their 2019 and 2020 League World Championships. This has helped them accumulate a total of over 45.462 billion hours in watch time on Twitch.

#1 League of Legends

Twitch has become one of the main places to go if you're a gamer looking to showcase your talent to others and it'll only continue to keep on growing over time. Only time will tell what the list will look like in the future, as there may be other games that breakthrough but many of these games still have a great grasp of talent on Twitch playing their game every single day.

That's it for this article, I hope you enjoyed reading! Let me know what your thoughts are on the rise of Twitch, and what you think the list will look like in the future. Stay tuned for more articles and until next time, stay ELITE!

Twitch and Their Role in the Gaming Industry

WRITTEN BY

[Adrian Malhiers](https://efuse.gg/u/AdrianMalhiers)

18 year old Indian gamer, discord admin, event moderator and writer for eFuse and Esports, aspiring content creator. adrian.malhiers.business@gmail.com

Top 10 Most Watched Games of All Time on Twitch

Business expenses. What qualifies? What doesn’t? How do I claim them? These are some of the questions I’m most asked when it comes to business expenses for streamers and content creators.

large_markus-winkler-Ber3q-zEhd4-unsplash-2.webp

medium_markus-winkler-Ber3q-zEhd4-unsplash-2.webp

small_markus-winkler-Ber3q-zEhd4-unsplash-2.webp

thumbnail_markus-winkler-Ber3q-zEhd4-unsplash-2.webp

markus-winkler-Ber3q-zEhd4-unsplash-2.webp

**Yes, you can write off video games you purchase.** 

However, these must be games that you play on stream, or intend to play on stream. Common example — you purchase a game from Steam to try out off stream but decide you don’t enjoy it and won’t play it anymore. This game can still be written off because you purchased it with the intent to play on stream.

Let’s use the Cyberpunk release at the end of 2020 as an example. If you purchased the game because it was new and popular and you wanted the ability to stream to your viewers, you can write off that purchase.

There are also times you can write off in-game purchases as well. Battle passes are a great example. This is because though the game itself may be free to play, purchasing the battle pass is what unlocks the full potential of the game and therefore provides the opportunity for better content and a more enhanced viewing experience for viewers.

Purchasing a weapon blueprint in Warzone is another example. If you want to create a YouTube video with a blueprint, that counts as a business expense. It’s ordinary and necessary in order for you to create that YouTube video. 



Can Streamers Write Off Games?

To start, let’s understand what qualifies as a “business expense”. To keep it textbook, here’s what the IRS describes as a [business expense](https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses#:~:text=Business%20expenses%20are%20the%20cost,operates%20to%20make%20a%20profit.), “To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business.”.

However, due to how new the industry is and the lack of official tax guidance from the IRS specifically regarding streamers, it’s difficult for streamers to interpret and understand what a “necessary” expense is. As a result, streamers default to what they randomly find on Twitter or follow what their friend did — either of which can often be incorrect.

Wrestling with what qualifies can lead to not writing off an expense, which means you could end up paying more in taxes. That’s because as a streamer you’re a self-employed individual who is taxed on your net income (Streaming/content creation revenues minus all business expenses). 

In this article we’re going to dive into what qualifies as ordinary and necessary expenses.

Before we dive in, it’s important to note that these write offs are for streamers who are trying to profit from streaming and establish a career. If you’re streaming as a hobby or for fun, the following expenses won’t be deductible on your tax return.

What Qualifies as a Business Expense

Streaming equipment and furniture is one of the larger expense categories that can be claimed on your tax return. PC’s, PC parts/upgrades, PC cords and cables, monitors, monitor mounts, cameras, camera tripod, camera lens, keyboards, mouses, mics, microphone stand, controllers, GoXLR, Elgato lights (or other lights), desks, and chairs are all examples.

Small plug — if you run a dual PC setup, be sure to write off both PC’s. If you don’t run a dual PC setup but had an above average year income wise, consider upgrading to a dual PC setup to lower your tax liability (higher business expenses = lower tax bill)

Streamer Expense #1 - Equipment & Furniture

This is a category that can easily be missed. For clarity — when I say “stream backdrop”, I’m referring to everything your chat sees behind your face while streaming.

Your stream backdrop may contain a small or large amount of space, but either way it’s something you should capitalize on. Your stream backdrop is what creates the vibe and ambience of your stream — it’s often times what can bring a random viewer scrolling through Twitch to your channel. 

Additionally, creating the right ambience in your stream room is what may help you get in the zone to be the best version of you once you’re live. For this reason, *some* items in your backdrop might qualify as a write off. 

Common examples include — spot lights, custom LED signs (such as your streamer name), shelves, items on shelves, posters, oil diffusers, and other items that fit your personality. 

You should thoroughly think through these items and make sure they actually apply to your stream backdrop before claiming them as an expense. For example — don’t write off your bed because it’s in the background. The primary use of your bed is most likely not for streaming related purposes. 

A good rule of thumb is anything you’ve purchased strictly for streaming purposes that can be visibly seen by your chat while you’re live.

Streamer Expense #2 - Stream Backdrop

Discord Nitro — if you’re paying for Discord Nitro and the main purpose is to have better audio quality while streaming, take business calls, or improve your Discord community, write it off. However, if you use Discord for personal purposes as well, allocate an appropriate percentage to business and an appropriate percentage to personal use. 

Streamlabs Prime — Your membership to Streamlabs prime is directly related to streaming and can be included as a write off.

Adobe — Any Adobe membership you pay for that’s needed to carry out streaming related work can generally be written off.

Microsoft Office — If you’re using Microsoft office apps for streaming related business, write it off. This includes using excel to track income and expenses throughout the year or Microsoft Outlook for your business email. 

Royalty free music subscription — We all know how strict DMCA strikes have become over the last year. If you purchased a royalty free music subscription so you can still play music while streaming, you can write it off.

Malware — If you purchase malware protection for your streaming PC(s), you can write it off.

Streamer Expense #3 - App/Software Subscriptions

Contracted work includes graphic designers, lawyers, CPA’s, moderators etc. It’s anyone you’re paying for work directly related to your stream and content. 

For this reason, it’s important to keep track of all documentation when paying someone for outsourced work. I know invoicing isn’t something that’s cool or commonly talked about in gaming, but it’s something I’d recommend doing to keep yourself organized.

Additional note — if you’re paying individuals more than $600 for work performed in one year, you could be subject to issuing them a 1099. This is an article in and of itself, so for this article I’ll just plug it as something to be aware of. 

Streamer Expense #4 - Contracted Work 

If you have a room in your home/apartment that is used strictly for streaming or content creation, you can deduct a portion of your home expenses (or rent costs) on your tax return. 

You’ll file Form 8829 — “Expenses for Business Use of Your Home” to claim the deduction. 

Important note — if you’re not paying the costs of the home or rent for the apartment, you cannot claim your stream room as an expense. In order for a business expense to qualify, it must be money coming out of your pocket. If you’re living at home with your parents rent free, you’re unfortunately excluded from this deduction.

Streamer Expense #5 - Stream Room

Giveaways are a great way to grow your community or thank your current community for their support. Either way, they can be viewed as promotional and are very normal in the course of business for streamers (as we know).

However, to fully comply with tax guidelines, it’s best practice to make sure giveaways are only for followers and/or subscribers. When a giveaway is conducted this way, it can be soundly argued that the giveaway was used to drive business (i.e. gain new followers and subscribers).

If the giveaway is open to anyone, you’re putting yourself in a bad position if audited by the IRS.

Streamer Expense #6 - Giveaways

As mentioned at the start of the article, the third common question I get is “Where do I claim my business expenses?”. All income and expenses related to streaming are reported on Schedule C. However, the key is to keep track of all your activity throughout the year so that Schedule C is easier to fill out come tax time. 

Though this article lists out numerous business expenses to consider as a streamer, it is not all inclusive. The goal of this article is to provide a strong foundation in what business expenses could look like as a streamer or content creator.

Where do I Claim my Business Expenses?

I hope this article will act as a resource and guide you can come back to reference as needed!

**Disclaimer**: *None of the information above is intended as individual financial or tax advice. This article is for educational purposes only. Each individual has a unique tax situation & should appropriately seek a tax professional for guidance.*

WRITTEN BY

[Juan Rodriguez, CPA](https://efuse.gg/u/lodgz)
Gaming, esports & content creator CPA. Founder of Lodgz Financial.

7 Business Expenses Streamers Should Consider Claiming

We’re moving into a new stage for Clippy and so we think it’s fitting to introduce a new name that better represents the product we’re building. So from today, Clippy will be Sidekick.

Read More

Trending Articles

Free Tools