Spotting bad tax advice on social media
Let’s be real.
We are OFTEN starting our research on social media.
And, honestly, I’m a fan. Charlatans are everywhere, but there’s also lots of trustworthy foundational content out there. It can be a great starting point for being able to ask more specific questions to a qualified professional.
As you go to TikTok, Twitter, LinkedIn, etc. for your tax knowledge, here’s how you can spot bad - or at least unhelpful - tax advice.
Don’t assume a large following & engagement = accuracy || Some of the worst money “advice” comes from large accounts that got that way either through PREVIOUSLY being accurate or simply by being sensational 🔥 with no regard to accuracy. Dig deeper into the comments and author/creator replies. Are they of quality? Does the author respond well to critiques? Does the author respond…at all? Professionals will be happy to support their opinions with evidence, account for nuance, and admit when they're wrong.
Identify the intended audience || ****Money 💰 is too complicated of a topic for generalities to work for everyone every time. Tax & financial advice that is ACTUALLY helpful will nearly always be customized for the person receiving the advice. Can you tell who the creator is talking to? Look for hashtags & branding that attract a narrow audience. Look for clear indications on & in the post that the creator knows not everyone watching will benefit from this particular piece of advice. If it sounds as if the creator is helping EVERYONE, it could be they’re actually helping NO ONE.
Are you being educated or are you being sold? || This one’s tough. Content creators need to get paid SOMEHOW - even when the advice IS solid. Maybe there’s a paid course or an opportunity for a 1:1 relationship the creator’s promoting. A creator promoting their various revenue streams doesn’t tell you one way or the other if YOU would be helped by what they’re selling. Online reviews & search engine results can be helpful here. Also look for other accounts that support AND refute the creator in question, if available - you’ll learn a lot from both.
Bonus: 3 quick ways you might be able to spot bad tax takes:
LLCs and trusts are promoted as ways to “never pay taxes again”
Intricate diagrams + lots of tax buzzwords meant to dazzle & confuse
Phrases such as “your CPA doesn’t know” or - even catchier - “your CPA doesn’t WANT you to know”. Sure, dude. My clients pay me for ::checks notes:: withholding applicable & viable tax strategies
