Make 2023 the year where you get the maximum return on your taxes. As taxes are due on April 18th, it’s time to start planning and preparing for filing season. And what better way to learn everything you need to know about filing, tax deductions and refunds than short and to-the-point TikToks by financial creators?
Not only are these videos concise and engaging, but they are also jam-packed with taxes advice you might not find on Google or YouTube. With filing hacks for everyone from first-time filers to students and those who drive business vehicles — TikTok has you covered with the latest insight.
Keep reading to discover six TikTok tax tips that will leave you more prepared and at ease during this year’s tax season.
4 Easy Steps To Filing
If you have never filed for taxes before, it might seem like a daunting task. However, breaking down the process into feasible steps can help streamline the process and ease the learning curve.
TikToker, GECU Credit Union’s @mygecu breaks down the steps in this TikTok. She recommends first gathering all the important documents you’ll need for filing. This includes an ID card, a Social Security card, W2 forms, 1099 forms and student loans.
Secondly, you’ll want to be prepared with your routing and account numbers in order to receive a tax refund via direct deposit. Next, you’ll want to account for any major changes that have happened in your life since you filed last. This might include new real estate, marriage or retirement. Finally, you can submit your tax return through taxation software or through an online tax filing form.
File Your Taxes for Free
According to the IRS, If your adjusted gross income is under $73,000, you are eligible to file your taxes for free. Simply head to this IRS website to get started browsing free online providers.
There are 11 websites the IRS features on this site that users can choose from to file for free. If you are finding the number of options on this site overwhelming, you might find it helpful to focus on the income bracket, age range and state to which each site caters. According to the IRS, 70% of American taxpayers qualify for this program.
Watch the TikTok by @keziamw, here.
Take Our Poll: How Much of a Tax Refund Do You Expect in 2023?
Business Vehicle Deductions
If you use a vehicle for your business, you might be eligible for some major tax returns. Simply take a picture of the odometer on your vehicle’s dashboard at the beginning and the end of the year in order to track your mileage.
When obtaining a tax reduction for a business vehicle, it’s essential to know how much of the vehicle’s mileage is related to the business. You can enjoy some major financial return for your vehicle as vehicle deductions for 2023 is $2,000 higher than 2022 with deductions of up to $36,000.
Check out this TikTok by Rony Fogain, @rfogain, to find out more.
Student Tax Write-Off
If you are a student, you’ll definitely want to be aware of this tax tip by @princesstay on TikTok. Students can claim 20% of the first $10,000 that went toward their tuition yearly. Called the lifetime learning credit, this write-off opportunity applies to undergraduate, graduate and non-vocational students.
Additionally, if you are the parent to a college student helping your child pay for college and your child is a dependent, you can also apply for this tax opportunity.
Self-Employed? Here’s What You Need To Know
If you are self-employed, there are a few key things you want to be aware of them filing your taxes. This TikTok by @wilsonrogersco breaks down everything freelancers and self-employed people need to know this tax season.
If you were self-employed last year, the first thing you want to do is total your income from bank statements and cashless payments. You’ll also want to have your form 1099s prepared and totaled.
It’s important that when you report your revenue you include these accounts. Next, it’s best to organize all of your expenses by category, including, rent, advertising and food. After compiling income and expenses, simply complete schedule C which can be found on form 1040 to report your business activities.
What Is Avoidance Versus Tax Evasion?
No one wants to be hunted down by the IRS for avoiding taxes. However, it’s incredibly easy to make a major mistake when filing taxes due to the many forms and requirements you need to be aware of. When it comes to understanding the difference between tax avoidance versus tax evasion, this TikTok by @taxtipswithacpa breaks down the distinction between the two.
Tax avoidance entails using tips and strategies in order to maximize your after-tax profit. Tax evasion, on the other hand, is underreporting your income or failing to pay your taxes. While tax avoidance is completely legal; tax evasion is illegal. If you find yourself questioning the legality of a tax strategy and want to avoid the IRS coming after you, be sure to ask a CPA for their insight.
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