Influencers and content creators have tax obligations, and these days, more and more are starting as children.
You may have seen families on popular social media platforms like YouTube, TikTok, or Instagram featuring their children and expanding their online footprint. People under 18 have also grown more active on social media, making money from sponsored posts, affiliate marketing, brand representation, and subscribers, just to name a few examples.
For instance, Ryan Kaji is a content creator who started off by conducting toy reviews on his YouTube channel Ryan’s World. By age 6, Ryan had earned more than $10 million. Now 12, Ryan has amassed over 39 million subscribers and was worth $35 million as of 2024, according to Forbes.
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The number of “kidfluencers”, or children who are social media influencers, has been growing over recent years. On a smaller scale, CBS News reports that a child with at least 1 million followers could earn as much as $10,000 per sponsored post.
But the cash earned by being an influencer isn’t a “free lunch.” If your child or children are earning income, they may need to file a tax return this year. Those earnings may also impact your tax liability.
Furthermore, some states have recently passed landmark laws providing child influencers with protections similar to those for child actors. Those pieces of legislation, which come in the wake of several scandals involving kidfluencers being taken advantage of, give children legal rights to a share of the profits earned.
Here’s what families need to know about handling taxes if their children earn income from social media.
How much does my kid have to make to file taxes?
Some child influencers may have little to no earnings and won’t have to file a return this tax season. However, other minors may earn incomes high enough that they must meet tax filing obligations.
As reported by Kiplinger, if a child only has earned income from wages, they must file if their income exceeds the standard deduction for the tax year ($14,600 for 2024 and $15,000 for 2025).
The filing threshold is much lower for other types of income:
- Minors must file a 2024 federal income tax return if they received $400 or more in tips or self-employed income.
- For unearned income (such as dividends or interest), the filing threshold is $1,300 for the 2024 tax year.
- Unearned income that exceeds $2,600 is taxed at the parent’s rate unless the child’s rate is higher (often referred to as the kiddie tax).
There’s one caveat: Even if a minor doesn’t earn enough to file taxes, they may opt to file a return to receive a refund of tax withheld from their earnings. Parents or guardians can also claim a child as a dependent regardless of whether they file, except for a few exceptions.
For more information: Does Your Child Need to File a Tax Return This Year?
Some states offer more protections to child influencers
Most states across the country don’t have many legal protections for child social media influencers, according to the University of Chicago Law School.
However, as family influencer and parent-facilitated child influencer content has become more common, some states have stepped up to safeguard minors from being exploited for profit.
Many of these families make thousands of dollars annually from associated brand deals, merchandise, and paid subscription models. Videos or vlogs often showcase families’ day-to-day activities, vacations, and more.
A report from CNBC showed that you need a minimum of 5,000 Instagram subscribers and about 308 sponsored posts a year to generate $100,000. The draw has led some parents to abandon traditional jobs and become full-time influencers featuring their families.
Here are some states paving the way for children to safeguard their finances.
California
In California, Gov. Gavin Newsom signed legislation in September 2024 that protects children and teenagers featured in online content from financial abuse.
The legislation expands the Coogan Law (California Child Actor’s Bill) to include minors who are employed as online content creators. Essentially, parents and guardians must create a trust for their children and contribute to the account based on how often they appear in content.
- Marketers and those hiring child influencers must verify the existence of Coogan trust accounts and deposit 15% of earnings directly into those accounts.
- If the minor is featured on 30% of monetized digital content, 65% of their gross earnings must be put into a trust account.
The new law became effective January 1, 2025.
Illinois
Illinois passed a state Child Labor Law that requires parents of influencer children to set a portion of their earnings in a trust account, mirroring California’s Coogan Law.
- Under the law, if a child appears in at least 30% of a parent or guardian’s social media content over a 30-day period, and gathers enough views to receive compensation, the minor is entitled so some of those earnings.
- A trust fund must be made in the minor’s name, to be accessed once they turn 18.
- Parents must keep records of the content created.
The legislation has been effective since July 1, 2024.
Minnesota
The state of Minnesota stepped up its protections for children influencers in several ways.
- The Minnesota House passed legislation in 2024 that prohibits parents from including children under 14 in their vlogs or videos.
- On their own, minors under 14 are also barred from “engaging in the work of content creation.”
- If your child is age 14-17 and appears in at least 30% of content creator’s material over a 30-day period, they are entitled 30% of the generated revenue.
- Modeling California’s Coogan Law, the income must be placed in a trust account for the minor and be accessible once they reach adulthood.
The law on children influencer content will be effective on July 1, 2025.
Keep track of your child’s earnings
If you or your child is social media content creator, make sure you keep track of any earnings as they may be subject to taxes this tax season. With the April 15 federal tax deadline around the corner, you don’t want to accidentally file late and incur unwanted penalties or fees.
As mentioned above, some states have enacted or are slated to issue new protections for child influencers this year. This could change how you report some earnings on your tax return, so it’s recommended that you talk to a trusted certified public accountant (CPA) or tax professional.
Likewise, even if your child earns enough income to file a tax return, you can still claim them as a dependent on your tax return. You could still be eligible to claim popular tax breaks for families like the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC).
