Although some gaming income is classified as donations, do not be misled. If you do not receive a 1099, the IRS still requires all income to be reported. The income earned will be reported from hosting websites like Twitch, YouTube, or Facebook Live on tax form 1099. Gamers are responsible for submitting a 1040 tax form reporting their income earned from e-sports. Also, any fringe benefits received from sponsors such as free equipment or mileage is taxed based on the fair market value of the benefit. Any income received from donations, tips, subscriptions, sponsorships, and advertising from gaming or streaming is considered taxable income. Professional gaming has taken off in the past few years with some even making millions! The IRS defines income broadly. Electronic sports, or e-sports, income is taxable to gamers who make money from participating in online gaming.
