Galen, Author at Pajama Pants Finance

11Sep 2017 by Galen

Kickstarter and GoFundMe Taxability

Kickstarter and GoFundMe Taxes We’ve already established that money you earn from streaming counts as income for US income taxes. That holds true whether it’s a tip, donation, or a sub from any platform. So what about other sources of money? Sometimes when things go wrong, especially costly medical emergencies, we turn to GoFundMe. Also, if there’s a specific project you want to get off the ground Kickstarter can make sense. GoFundMe GoFundMe is the easier case to talk about. Since with GoFundMe you’re asking people to donate money for a one-time thing they’re generally considered gifts. Gifts are not taxable to the recipient in the US. If you’re giving money on GoFundMe and it’s to a registered charity (under US tax code section 501(c)(3)) then you may be able…

04Sep 2017 by Galen

Why Saving Early is Important

Personal Finances

The simple math of saving There’s a lot of BS/financial porn you can read or find on TV. After all, it can be really, really exciting to look at the potential of finding the next Google or Amazon before it’s big instead of saving. Unfortunately, your odds of actually finding something like that are pretty damn small. Let’s talk about what you can control and how it can make a difference: how much you save. It’s not as sexy but it’s the key to successfully going full time streaming as well as having the kind of money to let you choose what you do with your life. Assumptions Ok, first we’re going to use a couple of assumptions. In this scenario you’re 25, single, and just starting to save money.…

21Aug 2017 by Galen

What if your stream loses money?

Running a Business, Taxes

What if your stream loses money- deducting business losses It’s never fun when your business loses money. However, it’s a fact of life for many businesses, especially in their initial years of operation. Once the machine is running smoothly you’re all set but until then it can be hard! Let’s look at what you can do if your stream loses money in a year. If you need a refresher on tax basics, check here or here! As always, I’m not an accountant so if you feel you may need to take a loss work with a tax professional. Let me know if you need a referral! What counts as a business loss? You have a business loss when the income from your business is less than your expenses. This could…

14Aug 2017 by Galen

Deducting Home Office Expenses for Streamers

Running a Business, Taxes

Can Streamers Write Off Their Home Office? Unless you’re as high profile as the folks at N3RDFUSION I feel safe guessing that you stream from home. It’s super convenient and relatively inexpensive. However, did you know that you might be able to write off your home office for business purposes? I first and foremost want to say that I am not a CPA or tax attorney. While this article is a good guide you should consult with your tax professional (you have one, right?) before taking the deduction. Also, this applies specifically to the US. If you’re outside the US you may have something similar but I won’t know about it. Does your home office qualify? The IRS is pretty leery of people taking advantage of this opportunity. They…

09Aug 2017 by Galen

My Love Letter to Streamers

Galen's musings

My love letter to streamers Don’t tell my wife I’m writing a love letter to anyone besides her, ok? I love you guys. Streamers, broadcasters, content creators: whatever you feel is the most relevant label for you. You do damn good work and you build meaningful, caring, supportive communities out of nothing. You bring people together as friends; people who may never have met without your help. They get an awesome place to hang out, totally for free. That so many of them choose to support you speaks for itself. You’re making a difference. I’m constantly staggered by the pure passion I see fueling Twitch. How many hours do you guys put in? So many of you work full time, stream, produce videos for YouTube, and manage a community. Even…

07Aug 2017 by Galen

Do You Need to Care About Itemized Tax Deductions?

Personal Finances, Taxes

IMPORTANT NOTE: THIS INFORMATION IS OUT OF DATE AS OF 2018 Do You Need to Care About Itemized Deductions? Choosing whether you use the standard deduction or you itemize deductions is one of the key parts of a tax return. That’s a fun sentence, huh? Unfortunately, it’s not always clear which route is best until you do the math. Often, this is a major reason to hire a tax preparer. They’re much more comfortable with the process and can make the decision more quickly. Let’s take a look at your different options and the ones I think will be most relevant to you. If you want to learn more about tax basics before jumping in to this article check out our tax basics! Standard Deduction First, let’s look at what…

31Jul 2017 by Galen

How Streamers can Avoid Getting Screwed by Personal Liability

Insurance, Personal Finances

How streamers can avoid getting screwed by personal liability Today’s topic is how streamers can avoid getting screwed by personal liability. One of your best options is buying umbrella insurance. I’m not an insurance salesman, just someone who through work and study knows this is a big risk. This is one of those things that you just need to do as an adult in the US. However, most people miss it. Let’s look a bit more in depth. What is umbrella insurance? Umbrella insurance is liability insurance that layers over your other insurances, kind of like an umbrella is a layer over you in the rain. Umbrella insurance doesn’t start until your previous insurance ends. For instance, if you have auto insurance that covers for up to $300k for accidents…

24Jul 2017 by Galen

Why Streamers Need an Emergency Fund

Personal Finances

Why Streamers Need an Emergency Fund Do you have enough cash? I don’t mean in your wallet, I mean in your bank account. Also, how do you define “enough”? Perhaps it’s enough to help you make the transition to full time. It could be enough to help you get through seasonal changes in your business income. Most certainly it should be enough to help you get through tough times like injury, illness, or just bad luck. You keep that cash in your emergency fund. What is an emergency fund? An emergency fund is an easily accessible account that holds cash you can access in a moment’s notice. The simplest example is a checking or savings account at a bank. However, it should be separate from the account you use…

17Jul 2017 by Galen

The Importance of Defining Success as a Streamer

Running a Business, Stream Tips

Defining Success We all want to be successful, right? The dictionary has only positive entries: the accomplishment of an aim or purpose, the attainment of popularity or profit, a person or thing that achieves desired aims or attains prosperity. Sign me up! Except… what am I signing up for? How do I define success? Consider what gives you meaning/purpose [caption id="attachment_666" align="aligncenter" width="359"] Hopefully not this[/caption] In my humble opinion, you define success for yourself based on what gives you meaning or purpose. The good news is that makes success different for each of us. The bad news is that it makes success different for each of us, meaning it’s easy to judge someone else for not achieving what you would call success. So what gives you meaning? Yes you…

10Jul 2017 by Galen

Homebuying for Streamers

Personal Finances

Homebuying for Streamers Homebuying has long been one of the expected steps in the American growing up process. You go to college, get a good job, get married, buy a home, have kids, etc. While I’d contend that not everyone needs to own their own home I understand the appeal. Today we’re going to look at the practical steps you should take when you plan to buy a home. Homebuying Logistics This is not a minor decision. Not only does it define where you live for the next several years to your life but it’s also the largest financial decision most Americans ever make. Take the time to do your due diligence and you’ll stave off a lot of future headaches. Just think of what a cool person future…

Author: Galen