Taxes Archives - Page 3 of 3 - Pajama Pants Finance

08May 2017 by Galen

Is Your Stream a Hobby or Business?

Hey streamers, are you running a hobby or a business? I recently wrote an article for StreamerSquare discussing how to prep for the Twitch Affiliate program. In it, one of the major steps was deciding your streaming was a hobby that you did for fun or a business that you intend to grow and derive income from. Why is this important? There are some tax implications but there are much, much bigger goal oriented reasons. Let’s get in to it. Hobby It’s awesome to have a hobby. They’re great for relaxing and you can learn some useful, fun skills from them. If you’re planning on streaming being a hobby there are some practical steps you should take. First, you may want to consider not putting donation buttons on the screen…

27Mar 2017 by Galen

The 1099

Taxes

We’ve reached it- the last part of our tax document series. There’s still more tax stuff to talk about (there’s always more tax stuff to talk about!) but this is the last of the relevant documents. Today we’re talking about the 1099. This is the form that you’ll fill out if you paid someone to do something for you (like video editing) and the form that someone will pay if you did contract work for them. Don’t worry, this is a short one! Luckily, if you keep very good records the form itself also only takes a short time to complete. The 1099 If you paid someone over $600 as a contractor not an employee, and let’s be honest here unless you’re really, really big it’s a contractor, you need…

20Mar 2017 by Galen

How Should Streamers Use a Tax Refund?

Personal Finances, Running a Business, Taxes

If you got a tax refund this year, that’s both good and bad news. It’s good news because you got some extra cash that you can use to grow your stream or keep you up and running. It’s bad news because it means that you gave the IRS an interest free loan last year. Would you really give anyone who isn’t family or a really close friend the benefit of a no interest loan? I highly doubt I would. So how can you best use your tax refund to help you improve your business? Let’s take a look. Invest in Your Business You just got a couple of hundred and maybe even a couple thousand dollars. There’s something that you have had your eye on for improving your stream- perhaps…

13Mar 2017 by Galen

Streamer Taxes- The Schedule SE

Running a Business, Taxes

We’re getting to the not so fun part of our series. First, we covered the 1040 which is the basic tax document for individual. Then we talked about the Schedule C, which is where you as a business owner get the chance to get some large tax benefits. Now, we’re going over the Schedule SE. SE stands for self-employment and this is where you fill out your info to calculate how much you owe in self-employment taxes. Boo! Overview We’ve talked about self-employment taxes before but let’s go through a quick refresher. The self-employment tax is the government’s way of making sure you’re still paying for Social Security and Medicare. You may have noticed that on your paychecks from an employer you had a line for FICA deductions. That’s your…

06Mar 2017 by Galen

Streamer Taxes- The Schedule C

Taxes

TAX FORMS HAVE CHANGED SINCE THIS BUT IT'S STILL RELEVANT. Last week we discussed the IRS form 1040 which is the central place for an individual's tax return. This week we're continuing with the Schedule C. As a small business owner you absolutely should not skip over this document unless you really like IRS audits. Hint: you don't like IRS audits! If you're in a partnership, and by that I mean you legally set up a partnership, then this isn't the document for you. You'll need to fill out the K-1. I don't know of many streamers who have partnerships so I'm not planning a full write up on that document. If you'd like to know more about it leave a comment! Overview of Schedule C The Schedule C is…

27Feb 2017 by Galen

Streamer Taxes- The 1040

Taxes

One of the most frustrating things all Americans have to do each year is file their taxes. Shoot, I’m someone who has spent more time than is sane studying taxes and I hate actually going through the process. Unfortunately, as someone earning income from streaming your taxes are going to be more complex than if you just worked for someone else. If you want some tips on your taxes check out our tax basics article and our business class article. Today we’re looking at the basic tax form, the IRS 1040. Overview The 1040 is the form you file for an individual (as opposed to business) tax return. As a streamer, this is the form that you’ll be filling out. If you use something like TurboTax to do it yourself…

30Jan 2017 by Galen

How Streamers Should Use Extra Money

Personal Finances, Running a Business, Taxes

Ok, so you followed some good advice (hopefully ours with reverse budgeting) and you’ve built up a solid emergency fund. Maybe you’re someone just looking to go full time so you built up enough to give yourself a the runway you need. Or you’re a full time streamer who recognizes that you income is totally based on you so you need to have a buffer in place for illness, unavailability, or just slow times. You've gotten to the point where you have some extra money (yes, it can happen!) so what do you do next with your earnings? Goals The first thing to consider is your goals. Hard to know what to do with your money if you don’t know what it is you want to do! Do you want…

21Nov 2016 by Galen

Choose Your Own Taxes Adventure

Taxes

So you’ve read our basics on taxes for streamers article but came away scratching your head. That’s great, you say, but how does it apply to my business? Some of those things seem way too complex for the $100 I’m earning each month! Alternatively, you know that your tax headaches far outstrip the ideas we discussed and you’re really looking to optimize. Choose your own adventure! The next three sections have a bit more detail based on where you fall in your streaming life. The first section is if you’re just starting out, the second is if you’re transitioning to full time, and the final one is if you’re killing it and running a full time business. Just Starting Out You are probably safe to assume that you won’t have…

14Nov 2016 by Galen

Taxes: Not the Final Boss

Taxes

You’re happily streaming, building that view count, getting tips, maybe even trying for partner! After tons of work and months or years of low viewer count you’re finally turning the corner. You have a core group of dedicated viewers who welcome in first timers and you’re even considering starting your own Discord channel. You take a break and walk out to get your mail… weird, you don’t normally get thick envelopes from the IRS. You’re being audited! Ah crap! Did you know you’re supposed to pay taxes on the income you make from streaming, even if it’s a side gig? If you’ve got that under control, congrats! You’re way ahead of most streamers. If not, there’s a whole world of things you need to learn but we’ll walk through them…

Category: Taxes