Do child actors pay taxes?

Do child actors pay taxes?

A look into how young performers are taxed and protected by the law

(By Javier Guerra)

(Photo: Karolina Grabowska | Pexels)

Yes, Child Actors Pay Taxes — Here’s Why

Many people assume that child actors are exempt from paying taxes due to their age, but in reality, the Internal Revenue Service (IRS) treats them just like any other working individual. If a 10, 12, or 15-year-old actor earns income through acting jobs — whether it’s a commercial, movie, or TV show — they are legally required to pay taxes on that income.

The IRS defines taxable income as “all income from whatever source derived,” and this includes wages earned by minors. Whether the income is paid directly to the child or placed in a trust account (such as a Coogan Account), it must be reported.

Tax professional Jennifer Adams explains:

“The moment a child earns more than $1,250 in unearned income or over $14,600 in earned income in a year [as of 2025], they must file a federal income tax return. That surprises many parents of child actors.”

The IRS does not make a distinction between adults and children when it comes to earned income. If a child actor earns money, it is their responsibility — with parental help — to report that income and pay any taxes due.

There are two types of income for children:

Earned income: money received for performing work (e.g., acting).

Unearned income: money received from investments, interest, or royalties.

Child actors typically have earned income, but many also receive residuals or royalties, which count as unearned income. Both are taxable.

Tax accountant Leo Tran explains:

“Residuals from past TV work or movies count as unearned income and must be declared. Even if a child earns only a few hundred dollars a year in residuals, it still needs to be reported.”

For example, if a child actor earned $20,000 from acting in a single movie and another $3,000 in residuals from past projects, they would need to pay taxes on the full $23,000.

Most child actors don’t file their taxes themselves — their parents or legal guardians typically do it on their behalf. If the child earns more than the IRS threshold for that year, the family must file a tax return using the child’s Social Security number.

The child’s income is not added to the parent’s return (unless they choose to do so under specific conditions allowed by IRS Form 8814 for unearned income), and the child may owe federal and state income taxes, depending on how much they earned and where they live.

Some parents file separate returns for their children to avoid higher tax rates that could apply if all the income were reported on the parent’s return.

As child actor mom Sandra Welch shares:

“Our daughter made $18,000 one year. We hired a tax professional to file her return separately. It saved us money and helped us stay legal.”

The Coogan Account is a special blocked trust account required in states like California and New York to protect a portion of a child performer’s earnings. Named after Jackie Coogan, a child star whose parents squandered his fortune, this account holds 15% of the child’s gross income until they turn 18.

But here’s a crucial point: the money in a Coogan Account is still subject to federal and state income tax — it’s not tax-free just because the child can’t access it.

Financial advisor Raymond Coles clarifies:

“A common misunderstanding is that since the child can’t touch the money in a Coogan Account, it doesn’t need to be taxed. But the IRS sees it differently — they tax it because it was earned, regardless of access.”

So even if a child only receives 85% of their earnings in-hand and 15% is locked away, 100% of the earnings must be reported and taxed accordingly.

Just like adult actors, child actors (or their guardians filing on their behalf) can deduct legitimate business expenses to lower their taxable income. These deductions include:

Acting classes and coaching

Headshots and photography

Wardrobe specific to roles

Travel for auditions or filming

Union dues (SAG-AFTRA, etc.)

Agent and manager commissions

If a 12-year-old actor made $25,000 in a year but had $5,000 in expenses, they would only be taxed on the $20,000 net income.

Child actor manager Tasha Greene states:

“I always advise parents to keep every receipt. Classes, haircuts for roles, mileage — it adds up. A good tax preparer can help reduce what the child owes.”

However, personal expenses (like regular clothing, schooling, or family vacations) are not deductible, even if related loosely to the child’s career.

Depending on how they are classified, some child actors may be considered self-employed by the IRS. This typically applies to those who are not treated as employees of a company or production.

If that’s the case, they may be responsible for self-employment tax, which covers Social Security and Medicare contributions. For 2025, the self-employment tax rate is 15.3% on net earnings over $400.

Even minors must pay this tax if they meet the income threshold — yes, even a 10-year-old.

Tax expert Daniel Wu explains:

“Some parents are stunned to find out their child owes thousands in self-employment tax. If they’re working on multiple freelance-style gigs without being a formal employee, this comes into play.”

That’s why many young actors prefer working on union sets where they are considered employees — Social Security and Medicare taxes are automatically withheld by the employer.

Child actors who work in multiple states may owe state income taxes in each of those states, depending on how much time they spend filming or performing there.

For example, a child who lives in Texas (which has no state income tax) but works on a show filmed in California will likely owe California income tax for the duration of the shoot.

Multistate tax filings can get very complicated, especially for touring performers or children who work on multiple national commercial campaigns.

Tax lawyer Elaine Dunn warns:

“If your child worked in three states last year, you’ll probably need to file three state tax returns. Each state wants its share of that income.”

Since minors cannot legally enter into contracts or file taxes on their own, the burden falls on their parents or guardians. This includes not only helping the child comply with tax laws, but also ensuring they don’t miss filing deadlines or underreport income.

Parents who fail to pay taxes on behalf of their child actors can be audited or fined by the IRS, and in rare cases, face legal penalties.

Actor parent Brian Castellanos shared this cautionary tale:

“We didn’t know our daughter’s residuals from a national ad were taxable. Two years later, the IRS hit us with penalties for not filing. It was a wake-up call.”

To avoid this, many families work with accountants who specialize in entertainment industry taxes.

Some famous child actors have publicly discussed their experiences with taxes.

Macaulay Culkin, star of Home Alone, was one of the highest-paid child actors of the 1990s. He later revealed that taxes and legal battles over his earnings taught him to be extremely cautious about money management.

Aubrey Anderson-Emmons, known for playing Lily on Modern Family, had part of her paycheck set aside in a Coogan Account. Her mother once said in an interview, “We still paid a good chunk of taxes every year, even though she couldn’t touch her earnings.”

Then there are everyday child actors, like 13-year-old Nathan Willis, who earned $17,000 last year in a recurring role on a Disney show. His parents had to file federal taxes, California state taxes, and open a Coogan Account.

“We didn’t expect to pay almost $4,000 in taxes,” said his dad, Mike. “But it’s part of the business.”

In summary, child actors do pay taxes, and in many cases, they pay a substantial amount. From federal income tax and state tax to self-employment and Social Security obligations, the IRS views their income just like any adult’s.

It’s important for parents to educate themselves, track every dollar earned and spent, and work with professionals to ensure everything is done correctly. Mistakes can be costly and even threaten a child’s financial future.

As tax consultant Jennifer Adams put it best:

“A child actor’s paycheck may be small or large, but it always matters to the IRS. Handle it with the same care you’d give to any professional income — because that’s exactly what it is.”

Understanding the tax landscape is just one more way to protect child actors, ensuring that their talents not only shine on screen, but are preserved off-screen as well.

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