Skip TikTok for Tax Advice
Tax time is here, and that can mean pocketing a juicy tax refund. But experts are warning about taking tax advice from social media platforms like TikTok.
- Social media is not a reliable source for tax advice – be careful of misinformation and false claims.
- Following bad advice can lead to serious consequences such as fines, audits or legal trouble.
- Get professional tax help instead to ensure you claim deduction correctly and maximise your refund.
Key points:
Social media may be great for tips on the latest fashion, how to feed a family of 10 on a budget, or what to see and do in Tokyo.
But when it comes to tax time tips, it’s not so red hot.
Around 8.5 million Australians use TikTok1, and while it can be a fun online community, it’s not always an accurate source of tax advice.
Accounting body CPA Australia is warning that if you see a TikTok account suggesting you can claim your dog on tax, it’s probably time to put your phone down2.
The Tax Office won’t buy it.
Clicks can translate to dollars for social media accounts.
But having a large following doesn’t make someone a tax expert.
CPA Australia says it has seen multiple TikTok finfluencers – some with large followings – make outrageous claims about potential work-related tax deductions.
Some of the whackier claims include:
- Claiming the cost of a pet pooch as a guard dog even though you work from home
- Claiming luxury designer handbags as a work laptop bag, and
- Claiming thousands of dollars in fuel costs without needing receipts.
CPA Australia’s Jenny Wong, says it’s a worry that many Aussies will view this sort of online content and assume they are getting free expert advice.
Yet, she says the advice is often just plain wrong.
In other cases, the content may have an ounce of truth but would apply only to a very small group of workers.
The thing is, as the Australian Taxation Office (ATO) is concerned, pleading “TikTok said I could claim it” is no excuse at all.
Worse still, following bad tax advice could mean missing out on legitimate tax breaks, or, facing big fines or even jail time.
Separating fun from fact isn’t always easy.
Tax law is complicated.
So, the best way to play it safe this tax time is by speaking with a licensed tax agent.
Registered tax agents will know all the legitimate deductions you can claim – including plenty you may not even be aware of.
Even better, their fee can be claimed in next year’s return.
Professional tips for tax time 20252:
CPA Australia offers some handy tax time tips to help you maximise your refund while still meeting ATO rules:
- Be thorough: Take time to gather your receipts, logbooks and any other evidence to support your work-related expense claims.
- Check what type of expenses you could claim that are relevant to your work. The ATO has a comprehensive guide to industry and occupation types.
- Don’t rush. Lodging your tax return early does not mean you’ll get your refund first, but could mean you make mistakes.
- Remember: the cost of seeking professional tax advice for your tax return is tax deductible.
Sources:
1 https://newsroom.tiktok.com/en-au/celebrating-our-thriving-community-of-australians
2https://www.cpaaustralia.com.au/about-cpa-australia/media/media-releases/ignore-tiktok-tax-advice-from-finfluencers