Tax season is the worst. Many of us, and this includes me, need a little help handling our taxes.
But be careful. Be careful where you get advice. As Mashable’s Elena Cavendar details, many people use her TikTok as a search engine. The results of paying taxes can be dangerous and completely wrong.
keeper(opens in new tab)Tax App Targeting Gig and Creator Economy Workers, Reveals Detailed Reports(opens in new tab) On the myths and bad advice circulating on TaxTok ahead of tax season. Keeper parsed hundreds of his tax-related TikToks, spoke with tax experts, and compared those insights to his 2022 anonymized purchase and amortization data from the app’s nearly 25,000 users. Did.
Using that insight, Keeper has debunked some of the myths you might come across on TikTok. big one? Those who rely on their appearance for work can write off the cost of appearance. Basically, no, influencers can’t and shouldn’t claim that expensive hair tools and fancy suits are business expenses. There have been many lawsuits that have ruled that if it can be used not only for personal use but also for business expenses, it cannot be written off.
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Another myth spread on TikTok, according to Keeper(opens in new tab)? That influencers can amortize their “living expenses” such as buying clothing. The IRS has a fairly narrow definition of what counts as a necessary business expense for an entertainer. This kind of thing is viral so people everytime We want to beat the system and people love to hear about loopholes. That doesn’t mean these hacks are necessarily good ideas.
“People want to get rich quickly and hope there is a secret formula that only rich people know, but in reality it’s a secret formula designed for rich people, so you “So the personal spending issue is basically saying, ‘Your house is full of tax deductions and you didn’t know that,'” says the CPA. Mr. Tim Owens(opens in new tab) told the keeper(opens in new tab).
new york times wrote an in-depth article(opens in new tab) On influencers getting through the tax season. It’s a difficult world to navigate. For example, gifts sent by brands to brands should be taxed at market value. but Items paid to advertise by them are not taxed.
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This creates room for people to insert themselves as tax “experts,” often “experts” focused on helping influencers file their taxes. Like anything else online, it’s a mixture of genuine professionals and people looking to profit in a timely manner.
If you look around TaxTok, you’ll notice many people promising loopholes.(opens in new tab) or luxury car(opens in new tab) can be written off. In many cases, this advice is either completely wrong or not exactly correct. For example, for a particular heavy luxury car: actual for business. So let’s hope everyone taking advice from TikTok is tracking their miles.
If you’re looking for tax advice and services you can trust, Mashable has reviewed and rated popular software for full-time employees, small business owners, freelancers, independent contractors, and gig workers.
It’s important for people online to navigate tax season with the help of people who know what they’re doing. hack You’ve seen it on TikTok, and it’s not a hack at all. Remember that air fryer recipe that turned out to be terrible as hell? all TikTok — tax included.
