Dark
Light
Today: June 15, 2024
April 12, 2024
1 min read

Tax experts caution against following bad tax tips on TikTok

As the deadline for filing taxes draws near, TikTok creators are sharing tips on what expenses to deduct, but financial experts are warning against relying on advice found on the social media platform, which may not be accurate.

One prevalent but misguided suggestion is the idea that individuals can write off their pets as business expenses or hire their own children to boost tax refunds. The Internal Revenue Service (IRS) has advised taxpayers against trusting questionable social media advice, emphasizing that following incorrect guidance could result in penalties.

See also  Politicians continue to seek TikTok votes, users remain unimpressed

Mara Derderian, a finance professor at Bryant University, acknowledges the value of initiating financial conversations through social media but emphasizes the importance of seeking advice from qualified professionals tailored to individual goals.

Here are three dubious tax tips circulating on TikTok from “finfluencers,” or financial influencers, that experts caution against:

Advertisement

Advertisement

Advertisement
  1. Claiming a car as a business expense: While legitimate business expenses include vehicle costs, taxpayers cannot automatically deduct the purchase of new cars. Proof of business usage, such as maintaining a mileage log, is necessary, and deductions may not be applicable if the vehicle is primarily used for personal purposes.
  2. Hiring children and deducting their salaries: While parents can employ their children legitimately, the work performed must be essential to the business. Documentation, such as time sheets, is crucial to validate these expenses and prevent potential audits.
  3. Claiming a pet as a guard dog: Despite suggestions on TikTok, pets are generally not eligible for tax deductions unless they directly contribute to business operations, such as therapy animals or service pets used in counseling. Merely having a pet at home, even if it occasionally alerts the owner, does not qualify for deductions.
See also  New App Alert: Could the Launch of Thread Signal the End of Twitter?

Financial professionals urge caution when considering tax advice from social media, emphasizing the importance of consulting qualified experts for personalized guidance.

Previous Story

“I am not married to Segun Ogungbe,” Omowunmi Ajiboye addresses cheating allegations with MC Oluomo

Next Story

Fubara: Better healthcare drives development

Latest from Blog

NLC, TUC picket IBEDC in Ogun

Members of the organized labour in Ogun State on Monday protested against the federal government’s elimination of power industry subsidies and hike in electricity

Ogun CJ frees 3 inmates

As part of its efforts to decongest correctional facilities across the Ogun state, the state’s Chief Judge, Justice Mosunmola Dipeolu has granted amnesty to

Two killed in Ogun cult clash

Two persons have been reportedly killed on Sunday in a cult clash in Abeokuta, Ogun State capital. The victims, allegedly members of the Eiye

Ogun evacuates, rehabilitates destitute

The Ogun State government has begun evacuation and rehabilitation of destitute with mental disorders who constitute environmental nuisance to communities across the state. Hon.

Pelican valley lights up Ogun communities

Pelican Valley estate has installed industrial solar lights in over ten neighboring communities in Ogun state. The community includes Kobape, Egbeda, Galatia, Masha, Mosunmore,

Ogun  IPAC gets new chairman

Comrade Sanyaolu Abayomi of Action Alliance ( AA) has emerged as the newly elected Chairman of  Inter-Party Advisory Council ( IPAC) in Ogun State.  The

OGHA passes N703.02Bn 2024 budget

The Ogun State House of Assembly has on Thursday passed N703,028,013,431.64 as the Year 2024 Appropriation bill. The bills which was earlier presented to

Ogun set to distribute 5000 CofO

The Ogun state government will distribute 5000 Certificates of Occupancy (C of O) to beneficiaries on Friday, December 1 2023. According to a statement
Go toTop

Don't Miss

Politicians continue to seek TikTok votes, users remain unimpressed

Notably, former President Donald Trump garnered 6 million followers shortly

Owner of TikTok denies willingness to sell amid looming US ban

In a statement released on Thursday via Toutiao, a news