TikTok creators are sharing filing advice as tax day draws near, including advice on what sorts of items to deduct. However, financial experts warn against taking the advice that seems to be spreading on social media platforms since it may not be sound.
TikTok creators are sharing filing advice as tax day draws near, including advice on what sorts of items to deduct. However, financial experts advise against taking the advice that seems to be spreading on social media platforms since it may not be sound. (Photo : by Drew Angerer/Getty Images)
Claims that taxpayers may hire their own children for a tax return or deduct their pets' costs as business expenses are two of the most well-known yet incorrect pieces of advice.
The Internal Revenue Service has also issued a warning to taxpayers, warning them against taking questionable advice from social media platforms as gospel and that doing so might result in penalties.
Professor of finance at Bryant University Mara Derderian stated that although it's great that young people are being exposed to financial topics through social media, it's crucial for consumers to know from whom they're receiving guidance.
Experts advise against adopting these three tax tips that are making the rounds on TikTok and are attributed to so-called "finfluencers," or financial influencers.
1. You may deduct your vehicle's expenses from your business
Taxpayers do not have the authority to purchase new cars and immediately deduct them from their taxes, even though a car might be a justified business cost. To begin with, you must be able to demonstrate that you really utilize it for commercial purposes. Maintaining a mileage journal and adding it up at the end of the year is one method to do this.
2. You may employ your children and deduct their pay
Once more, parents are legally allowed to hire their own children, but in order for their salary to be deducted from their company expenses, the children's work must truly be essential to the firm's operation. Furthermore, withholding a $4,000 income for your 9-month-old child, whom you represent as a model, is an example of a dishonest deduction that will probably set the IRS on edge.
3. Your dog may be claimed as a guard dog
Citing tips from TikTok, Dallas-Fort Worth-based certified financial planner Katie Brewer said she's been getting more questions from clients asking if they can claim their dogs as protection dogs. Most of the time, the response is no.
She clarified, "Unless you're in professions like dog grooming, dog training, or utilize a therapy pet for counseling purposes, it's unlikely that expenses related to pets will be tax deductible. Having a pet at home, even if it's just a pug hanging out and occasionally barking out the window while you work, typically wouldn't meet the criteria."
