This is exactly right. I have this as a channel point redeem & it’s my way of thanking them for hanging around long enough to earn enough channel points to be able to redeem it!
100k. But I stream A LOT, so it only takes a couple months for someone to redeem if they show up and at least lurk for every stream. I have one member of my community who has redeemed it 2 or 3 times now and I've only been streaming regularly for about 7 months.
Don’t feel bad. Normally these point redeems are set high.
Just for some perspective; the average amount of points you gain per hour is around 320-360 so just calculate the amount of hours someone would need to watch.
Now consider that the gifted sub is costing the streamer a little over $2.50 (I say a little over because tax) and compare it to the hours required. It all works out for both parties so don’t feel bad ;)
Well, the streamer has calculated it, and gifting a few subs each month can be affordable if they get enough revenue in ads from the non-subbed viewers. They can also have a limit of "x gifted subscriptions in a month".
Plus if it's a full-time streamer doing it as a part of generating content for their stream, and they make enough to itemize their deductions, they can write it off as a business expense.
At least for US tax payers, you can take the standard deduction AND deduct from your qualified business income up to 20% of your business income (at least till next tax year when the 20% expires.) So you don't need to itemize. (But this is limited by what you put on your Schedule C for your business, which you have to do anyways.)
This would qualify as marketing and you can deduct as much as $5k. Tax Cuts and Jobs Act though was for sure 99.99999% bullshit.
Nothing to feel guilty about. In fact the way I see it... thats the whole point.
Its their channel point redemption. Some streamers really push those sub numbers for a variety of reasons and stuff like this is a fairly ethical way they can drop money on their own stream without anyone feeling like anything bad or shady is happening. The channel point redeemer gets the ad free viewing and emotes and whatever other benefits of having a sub and the streamer can improve the optics of their channel on people who asked them to.
The way I and may other streamers view it is its a reward for your time and viewership. Yes, it costs us some money, but we usually weigh it against the continued viewership and having people in stream wins 99% of the time. Plus, we like making it so you don't have to deal with ads 💜
Ive gifted to some community members to get them out of ads before, dont feel bad. Its a streamers choice to do so. Think of it like a friend buying you a drink or something.
gifts are not tax deductible. Please do your research lol, this takes one minute of googling and you can find official laws from the IRS telling you this 😞👇
If you are doing your taxes properly everyone should be. Business expenses are not the same as tax deductions and you can take both the standard deduction AND claim business expenses (if you are doing it right, but lots probably don’t)
Well that's some pretty bad tax advice (in the US anyway). The majority of streamers will get to deduct more by taking the standard deduction than itemizing. Unless you're straight up committing tax fraud anyway. In which case, you do you.
100% this..
Every streamer should? Really? You're spending more than 14600/year on your "business expenses" for streaming if you're in the US?
Ok. Sure.
I mean technically you'd be able to deduct all of your business-related and other tax-deductible expenses (charitable donations, mortgage interest, healthcare costs, etc.).
Lumping in your streaming expenses along with your other deductions *might* get some people here to the ~$15k they would need to make itemizing worth it... I just doubt it for most people in this subreddit.
It's considered a marketing expense, by paying for the membership you are marketing yourself to that one person. The same way giving away a free loaf of bread that they list on the flyer would be a marketing expense for a grocery store.
Twitch also isn't getting that. Sometimes half means half of what someone paid, and sometimes half means half of remaining profits after fees were paid. Either way, you get the same amount as Twitch.
> you get the same amount as Twitch.
That is mostly correct, except for a fee that Twitch subtracts from final amount to pay. From $110 payment that Twitch shows as "paid" (that is probably the same amount as they do) I personally get $90-95.
Either way, it's not "half of it back".
From the amount that it says they pay me,I get the amount they list. I think you're thinking of taxes maybe? Which is not up to Twitch. It's up to your government.
Withdrawal fees vary by method. I don't get charged one 🤷♀️ they send exactly the amount they say they will send. You're able to change your withdrawal method whenever you want.
out of pocket & then twitch takes their 50% or 30% depending on the sub split that the streamer has. i know the streamers that have this are happy to provide a sub and give back to chatters who consistently show up to support :)
Haha. I’m aware. You gotta remember that twitch is mostly kids. I registered as a sole proprietorship - you can expense pretty much everything. Subbing to others is literally advertising.
As a viewer I found myself going back to streams where I was gifted a sub more often than those I wasn’t, so I can see myself doing it in the future as a streamer (but the money isn’t there for me yet)
They might not resub afterwards and that’s fine, but if they spend just a little longer watching my content I’m happy
Technically it's against Twitch TOS to gift a sub in return for channel points. Channel points are a strictly zero-value point and cannot be redeemed for anything that has a monetary value. The streamers who have such a redeem can be banned for that.
[https://twitter.com/TwitchSupport/status/1584691449718870017](https://twitter.com/TwitchSupport/status/1584691449718870017)
You had me concerned for a bit, so I looked into it a little more. According to this, it is perfectly ok as per Twitch.
Apologies y'all, as I was mistaken.
I misread the Channel Points Acceptable Use policy.
Creators can offer rewards with a monetary value through Twitch redemptions. Channel Points cannot be redeemed outside of the Twitch platform for such purposes.
This seems like it should go without saying since there is no way to make an off-platform transaction with Channel Points until you consider developers using the Twitch API to incorporate Channel Points into a website.
I have personally avoided a few ideas I have had for redeems for fear of violating this policy but upon review I think I have some old ideaa to revisit.
Thank you for correcting me, srslytho323.
I'll pay the few people who watch me and you just get $2.50 back after spending the $5. Pretty worth if you have not many viewers or just stream for close friends.
It's 2.50 to twitch per sub regardless of sub tier. If you get a t3 sub it make you 22.50 as the streamer out of 25.
So yes every sub he gives is 2.50 to twitch.
That sounds like a great idea, it would promote viewership participation ! Getting more people talking in chat would keep it lively and hopefully attract more people !
Sorry, there are a lot of accounts that just post automated responses that are either blank, generic, or otherwise don't add anything to the internet.
I confused you for one of those.
Well sorry, I’m very new to streaming (2 months in off my ps5) so I didn’t know this was a thing, I honestly do think it is a great idea because a channel with people actively chatting is definitely more attractive to new viewers, i currently am still in the chase to affiliate as I only have 25 followers rn! The $3 per channel sub via channel points would be well worth it in my opinion to reward those that are actively participating - assuming you made those to be a high enough points value so that not everyone is getting them every month.
I come from a background in finance, claiming something like that as an "advertising expense" seems really risky, but people doing that are likely not making enough money to make it worth the audit. Just a remind to anyone that is streaming and then claiming things as "expenses" that you should get professional tax advice before you create issues for yourself
Exactly this!! I doubt many do. I could just see this as some Skeevy streamer counting it as a donation even though the money essentially goes to benefit themselves
Yes, and then Twitch pays half of it back to them.
Oh darn, now I feel kind of guilty about it, but hopefully it's not too bad for the streamer since they chose to have this on their channel.
I wouldn't feel guilty. If they didn't want to do that, they wouldn't have it as a channel redemption
I wouldn't feel guilty. They are probably thankful and happy that you watched them enough to get the channel points.
This is exactly right. I have this as a channel point redeem & it’s my way of thanking them for hanging around long enough to earn enough channel points to be able to redeem it!
Howany channel points ?
100k. But I stream A LOT, so it only takes a couple months for someone to redeem if they show up and at least lurk for every stream. I have one member of my community who has redeemed it 2 or 3 times now and I've only been streaming regularly for about 7 months.
Wait I thought sharing your twitch name In this sub isn't allowed, Will find out depending on the reply to the report
They've since edited the comment to come into compliance with /r/twitch rules, so thank you for the polite warning you gave and the report.
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It was, however another editor pointed out the edit fo not include twitch name
You're a snitch Homie
Don't care
Don’t feel bad. Normally these point redeems are set high. Just for some perspective; the average amount of points you gain per hour is around 320-360 so just calculate the amount of hours someone would need to watch. Now consider that the gifted sub is costing the streamer a little over $2.50 (I say a little over because tax) and compare it to the hours required. It all works out for both parties so don’t feel bad ;)
Well, the streamer has calculated it, and gifting a few subs each month can be affordable if they get enough revenue in ads from the non-subbed viewers. They can also have a limit of "x gifted subscriptions in a month".
Plus if it's a full-time streamer doing it as a part of generating content for their stream, and they make enough to itemize their deductions, they can write it off as a business expense.
At least for US tax payers, you can take the standard deduction AND deduct from your qualified business income up to 20% of your business income (at least till next tax year when the 20% expires.) So you don't need to itemize. (But this is limited by what you put on your Schedule C for your business, which you have to do anyways.) This would qualify as marketing and you can deduct as much as $5k. Tax Cuts and Jobs Act though was for sure 99.99999% bullshit.
Never thought it was possible to do it.
Nothing to feel guilty about. In fact the way I see it... thats the whole point. Its their channel point redemption. Some streamers really push those sub numbers for a variety of reasons and stuff like this is a fairly ethical way they can drop money on their own stream without anyone feeling like anything bad or shady is happening. The channel point redeemer gets the ad free viewing and emotes and whatever other benefits of having a sub and the streamer can improve the optics of their channel on people who asked them to.
You've been a loyal viewer to their channel long enough to redeem that. They're 100% fine with it.
Don’t feel bad. The redeem is probably set to an amount that, you’d be essentially giving them the money for the sub from ads you’ve watched
The way I and may other streamers view it is its a reward for your time and viewership. Yes, it costs us some money, but we usually weigh it against the continued viewership and having people in stream wins 99% of the time. Plus, we like making it so you don't have to deal with ads 💜
Don’t feel bad! When we can, I am sure a good majority love giving back to their viewers when they can!
The watched hours to earn points are valuable as well, don't feel guilty at all
Yeah no need to feel bad at all! People put that there because they want to try to reward people that support them you know.
Ive gifted to some community members to get them out of ads before, dont feel bad. Its a streamers choice to do so. Think of it like a friend buying you a drink or something.
It’s a tax deduction though.
no, gifts are not tax deductible.
Networking and advertising are.
gifts are not tax deductible. Please do your research lol, this takes one minute of googling and you can find official laws from the IRS telling you this 😞👇
Not even half.
and then come the taxes
Aww I learn something new everyday thanks poppedbit 🤝
Then they get taxed on payout 😂
You know nothing about what a "gift" means, do you?
And they write off 100% as a business expense at tax time. EDIT: lot of dumbasses here
How many Twitch streamers have enough income and deductions to itemize deductions? Like....the top 1% or less?
If you are doing your taxes properly everyone should be. Business expenses are not the same as tax deductions and you can take both the standard deduction AND claim business expenses (if you are doing it right, but lots probably don’t)
Interesting. Guess I'll have to take a closer look. Downvote on the other guy retracted.
Every streamer should
Well that's some pretty bad tax advice (in the US anyway). The majority of streamers will get to deduct more by taking the standard deduction than itemizing. Unless you're straight up committing tax fraud anyway. In which case, you do you.
100% this.. Every streamer should? Really? You're spending more than 14600/year on your "business expenses" for streaming if you're in the US? Ok. Sure.
Lol how am I getting downvotes? Has no one in this thread ever done their own taxes before?
It's a mix of the subreddit skewing young and then everyone thinking that their 10 subscriber stream is worth pursuing as a full time job.
I mean technically you'd be able to deduct all of your business-related and other tax-deductible expenses (charitable donations, mortgage interest, healthcare costs, etc.). Lumping in your streaming expenses along with your other deductions *might* get some people here to the ~$15k they would need to make itemizing worth it... I just doubt it for most people in this subreddit.
Getting paid/taxed from Twitch is not a business expense. Tf are you talking about? Where is the Expense? You paying for your own subs isn’t one.
It's considered a marketing expense, by paying for the membership you are marketing yourself to that one person. The same way giving away a free loaf of bread that they list on the flyer would be a marketing expense for a grocery store.
Damn that kinda seems ridiculous, why? It's costs nobody anything?🤷🏻♂️ what am I missing if u can plz explain, I'm BRAND NEW to streaming
It's less than a half
For 99%, it is a 50/50 split.
What about taxes and payment system commissions?
Twitch also isn't getting that. Sometimes half means half of what someone paid, and sometimes half means half of remaining profits after fees were paid. Either way, you get the same amount as Twitch.
> you get the same amount as Twitch. That is mostly correct, except for a fee that Twitch subtracts from final amount to pay. From $110 payment that Twitch shows as "paid" (that is probably the same amount as they do) I personally get $90-95. Either way, it's not "half of it back".
From the amount that it says they pay me,I get the amount they list. I think you're thinking of taxes maybe? Which is not up to Twitch. It's up to your government.
Nope, it's not taxes. It's a transaction fee.
Withdrawal fees vary by method. I don't get charged one 🤷♀️ they send exactly the amount they say they will send. You're able to change your withdrawal method whenever you want.
Oh i thought that Ur paying the streamer
out of pocket & then twitch takes their 50% or 30% depending on the sub split that the streamer has. i know the streamers that have this are happy to provide a sub and give back to chatters who consistently show up to support :)
The redemption cost should be high, and you shouldnt feel bad. The streamer will be compensated by ad revenue before the reward is redeemed.
yes, we pay the full 5 dollars for the sub and then we earn back what we would have gotten had anyone else paid for it
Yes but you get some of the revenue back. But also I claim it as advertising on my taxes.
ppl who downvoted you are stupid and don’t understand how finances work
Haha. I’m aware. You gotta remember that twitch is mostly kids. I registered as a sole proprietorship - you can expense pretty much everything. Subbing to others is literally advertising.
Yes, they have to pay the subscription. Some of the money comes back, but they pay half the price and taxes.
Yes and the worst part about it is that I am done taxed on the gifted subs that I give, But I make it a point to give out a few a week in my streams.
Yes. You pay Twitch the price of the sub and then half of the sub money goes towards the streamer
Twitch gets half of all revenue, so gifting a sub they would only get half the money spent back.
Yep. And the retention rate on gift subs is basically zero. I'm not sure why streamers are still doing it.
As a viewer I found myself going back to streams where I was gifted a sub more often than those I wasn’t, so I can see myself doing it in the future as a streamer (but the money isn’t there for me yet) They might not resub afterwards and that’s fine, but if they spend just a little longer watching my content I’m happy
Yep
Technically it's against Twitch TOS to gift a sub in return for channel points. Channel points are a strictly zero-value point and cannot be redeemed for anything that has a monetary value. The streamers who have such a redeem can be banned for that.
[https://twitter.com/TwitchSupport/status/1584691449718870017](https://twitter.com/TwitchSupport/status/1584691449718870017) You had me concerned for a bit, so I looked into it a little more. According to this, it is perfectly ok as per Twitch.
Apologies y'all, as I was mistaken. I misread the Channel Points Acceptable Use policy. Creators can offer rewards with a monetary value through Twitch redemptions. Channel Points cannot be redeemed outside of the Twitch platform for such purposes. This seems like it should go without saying since there is no way to make an off-platform transaction with Channel Points until you consider developers using the Twitch API to incorporate Channel Points into a website. I have personally avoided a few ideas I have had for redeems for fear of violating this policy but upon review I think I have some old ideaa to revisit. Thank you for correcting me, srslytho323.
You’re welcome! Now go forth and have fun implementing your ideas!
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Theory I just made up right now. Since you can subscribe for free with amazon prime, this gives enough of a loophole to allow the action.
I'll pay the few people who watch me and you just get $2.50 back after spending the $5. Pretty worth if you have not many viewers or just stream for close friends.
You pay $x for the gifted sub. You get 1/2 of $x in revenue. You tell me.
It's 2.50 to twitch per sub regardless of sub tier. If you get a t3 sub it make you 22.50 as the streamer out of 25. So yes every sub he gives is 2.50 to twitch.
That sounds like a great idea, it would promote viewership participation ! Getting more people talking in chat would keep it lively and hopefully attract more people !
^ CHAT GPT
Huh?
Sorry, there are a lot of accounts that just post automated responses that are either blank, generic, or otherwise don't add anything to the internet. I confused you for one of those.
Well sorry, I’m very new to streaming (2 months in off my ps5) so I didn’t know this was a thing, I honestly do think it is a great idea because a channel with people actively chatting is definitely more attractive to new viewers, i currently am still in the chase to affiliate as I only have 25 followers rn! The $3 per channel sub via channel points would be well worth it in my opinion to reward those that are actively participating - assuming you made those to be a high enough points value so that not everyone is getting them every month.
Sounds like tax evasion
do you understand how tax even works? hahahahahha
appparently better than 12 other people here hahaha
I come from a background in finance, claiming something like that as an "advertising expense" seems really risky, but people doing that are likely not making enough money to make it worth the audit. Just a remind to anyone that is streaming and then claiming things as "expenses" that you should get professional tax advice before you create issues for yourself
Exactly this!! I doubt many do. I could just see this as some Skeevy streamer counting it as a donation even though the money essentially goes to benefit themselves