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Experts warn almost 80% of youth get tax advice from social media

Scripps News

Tax season is here and deadlines are quickly approaching, but experts have warned taxpayers to be careful with tax advice they find online.

Recent data indicates a majority of young people are getting financial and tax advice from social media.

The market research company Prolific compiled data from respondents showing that 79% of American millennials and those considered Gen Z have gotten advice about their finances and tax returns from social media.

The study also found that nearly 80% have found that the prevalence of financial advice on social media has made the topic easier to discuss.

Respondents said they take tax and financial advice from a number of sources, including the popular social media platform TikTok — with Instagram, Twitter, Facebook and LinkedIn coming in on the list behind that.

MORE: Is the financial advice on YouTube and TikTok safe?

Reddit and Youtube topped the list, with most respondents saying they get financial and tax advice from those social media sources.

The IRS and other experts warn that while there is accurate information that can be found on social media, if it seems too good to be true, beware.

The attraction of social media for advice is that it’s readily available and searchable from the devices that we use every day. Despite the allure of quick and seemingly trustworthy advice, the IRS said it has seen multiple examples this year of misleading information about the U.S. tax code and how tax filers should submit tax forms.

IRS Commissioner Danny Werfel said, “People should remember that there is no secret way to fill out a form and simply get a larger refund that they aren’t entitled to.”

A Kiplinger report details how some on social media have advised filers to fill out an IRS 8944 e-file form meant as a hardship waiver. The misinformation claims that those who use the form might be able to receive a tax refund even if they aren’t due one. The claim is untrue, and experts say it cannot be used to get a larger refund.

The IRS has published what it calls its “Dirty Dozen” list, which is what the agency has found to be the “worst of the worst” tax scams.

Tax professionals say that while this is not a list revealing the agency’s enforcement priorities, it can be a good guide for social media users to know which clues to watch out for on social media so they don’t fall victim to bad information.

By Douglas Jones, Scripps News.

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Scripps News

Scripps News delivers compelling, context-driven news, fact-based reporting and a deeper look at the "why" of each story with objective, impactful storytelling. Scripps News is available over-the-air 24/7 and on leading connected TV platforms. More.


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