Taxes for Professional Gamers – A Quick Guide

If you’re pursuing a career in gaming, knowing how to manage your money can be complicated. While some gamers have one full-time position, many more make their gaming careers through various opportunities and have several different sources of income. Having separate income streams is a good idea. Since it allows you to have options and remain afloat if one or two of them don’t work out. These opportunities can include; sponsorships on social media, providing gaming lessons to others, commentating or hosting e-sports competitions, and many other roles within the gaming ecosystem. However, it’s essential to learn how to manage the money you make. Would you mind keeping reading to discover more about taxes for professional gamers need to know when it comes to paying?

What careers can you pursue in gaming?

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It’s necessary to decide early on if you’re comfortable working as a freelancer; or if you’d prefer to have a salaried position. The latter is much harder to find if you want to pursue a career in professional gaming.

Full-time jobs often include things like being a host or a commentator; or taking a role at a video game studio. If you’re looking to get paid for just playing games, streaming is the most logical path.

Streaming can be highly competitive, especially with the number of platforms available for gamers to choose from today. You’ll require to put in the effort to ensure that you stand out. Having the right equipment is a huge part of finding success.

Take the time to look for the best microphone for streaming, as there’s nothing more important than your viewers being able to understand you. The Blue Yeti X is one of the most consistently recommended mics out there; primarily because of its high audio quality and ease of use.

If you’re planning to start live streaming on Twitch; the Blue Yeti is a great option, and it’s as simple to use as any other USB microphone.

Also Read: Looking For The Best Tax Planning For Wealthy Individuals

How do taxes for professional gamers work?

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How your taxes for professional gamers work depend entirely on what your job is and how you’re paid. Most professional gamers work in streaming or by making videos on YouTube; which means they’re responsible for submitting a 1040 tax form for their earned income on their own.

Even if you do not receive 1099 from the platform you stream on, whether Twitch or Mixer or Facebook; you will still need to report any income you earned to the IRS. Self-employed people and freelancers also need to keep track of their business-related expenses to deduct them accurately. Prize money from e-sports competitions also needs to be reported.

It’s a good idea to invest in tax folders to help keep your records straight when the time of taxes for professional gamers come around; especially if you’re a freelancer who will need to self-report.

It isn’t easy to keep records of all your purchases and deductions in an orderly way; without investing in some office supplies to help you do it. Make separate envelopes to keep your receipts in and track your expenses all year. So you don’t find yourself scrambling when tax time comes.

Also Read: 14 Tips and Life Hacks for Accountants to Stay in Shape During Tax Season

Conclusion:

The gaming industry has been rising exponentially for decades. Also, the advent of the internet has made it even easier for gamers to connect with other fans.

Jobs in gaming tend to be freelance jobs or jobs that work on a short-term contract; rather than a standard full-time employment gig. This means that managing your money can be a little more complicated, especially when it comes to doing your taxes.

Though you can learn a lot on your own, it’s often best to enlist a professional; to help ensure you don’t miss any deductions or end up paying more than you need to.

While gaming is an exciting and rewarding career, players need to be conscientious about keeping track of their finances; if they want to ensure that they’re able to continue to make money and do what they love.

Must Read: Opening A Bank Account in Dubai For Non-Residents – Process, Tips, Tricks

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