Parents Push Back After New IRS Reporting Requirement Targets Some 4-H Youth
The new requirement has prompted questions from some families about how it could affect youth participating in 4-H livestock auctions.
A new federal tax reporting requirement is raising concerns among some 4-H families after Michigan State University Extension announced that youth who receive $2,000 or more from livestock and still exhibit auctions during a calendar year may receive a 1099-MISC tax form beginning with the 2026 fair season.
According to an informational handout distributed by MSU Extension, the change is tied to existing Internal Revenue Service reporting requirements, not a new state policy. The university says it recently identified a gap in its reporting process and is now taking steps to comply with federal law.
The handout states that all payments made directly to a youth, including auction proceeds and add-ons, count toward the $2,000 reporting threshold. Youth who meet or exceed that amount will receive a 1099-MISC from the MSU Controller’s Office, and counties conducting 4-H livestock auctions will require participants to complete a W-9 form before selling animals. The document also says Social Security numbers submitted through the process will be collected using a secure, encrypted system.
Amber, a Michigan mother involved with 4-H, said she believes the requirement sends the wrong message to children participating in the program.
“It’s crap, if I’m being honest. Why are we going after the kids?” Amber said. “We’re trying to raise farmers. We’re trying to get kids interested in the animals.”
She compared the situation to laws designed to protect children operating lemonade stands from tax burdens.
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“We’re going to be like, ‘You know what, little Johnny, you’re six years old, but you sold a $2,000 cow, so we’re going to tax you on that.’ In my mind, that is just asinine.”
Amber also expressed concern about parents being required to provide their children’s Social Security numbers as part of the W-9 process.
“Some of the concern also is turning over Social Security numbers of these children to these fair boards,” she said. “That’s another concern of ours.”
MSU Extension says the Social Security numbers will be digitally encrypted and accessible only to an authorized state-level administrator processing the 1099-MISC.
The university also notes that receiving a 1099-MISC does not automatically mean a child owes taxes. Instead, the form is used to report income to the IRS, and whether taxes are ultimately owed depends on a family’s overall tax situation.
Amber said many children spend months raising and caring for livestock before auction day.
“These kids work really, really hard on these projects,” she said. “For them to just kind of get smacked in the face at the end with the tax bills is quite ridiculous.”
She also argued the new paperwork adds another burden for families already facing rising costs.
“I feel like this is actually taxing the parents at the end of the day because your kids are your responsibility,” Amber said. “Why are we putting one more thing on parents that are already trying to struggle in a world that is full of taxes?”
MSU Extension says the reporting requirement will not be applied retroactively and only affects income earned beginning with the 2026 fair season.