By Editorial Staff February 20 2023
Americans are turning to social media for tax advice, but some tax professionals are concerned about the accuracy of the information being shared.
TikTok has emerged as a top platform for sharing tax advice and tips, with hashtags such as #taxes trending on the app.
The content on social media ranges from genuine tax-saving strategies to misinformation, with some advice being misleading or incorrect.
Tax experts warn that the one-size-fits-all approach of social media advice might oversimplify the intricacies of tax deductions or credits, which can vary from person to person.
Some of the advice on social media, such as deducting 100% of business entertainment expenses in 2022 or using luxury cars for business, can be misleading and not legitimate.
Some of the advice, such as doing a 1031 exchange on cryptocurrencies, is incorrect and could cost taxpayers in penalties.
While social media can provide financial advice, the best way to ensure that the information is credible and reliable is to check the IRS website.