I stream on twitch, how do I do taxes for the money I make or donations I receive?
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 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:
- Go to Federal Taxes Tab
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