Online Tax Advice Can Steer You Wrong

I’m going to make a statement that I realize is deeply ironic: be very careful with online tax advice.

For those of you who haven’t closed the browser already since I give online tax advice, let me explain.

It Always Depends

One of the first things that tax accountants learn in their studies is that the answer to nearly every tax question is “It depends.”

It’s a good answer if you want to rack up the billable hours. it also happens to be true. Most tax advice, including mine, focuses on generalities. For example, moving expenses are no longer deductible. If you’re moving and you look up online if you can deduct it, you’ll probably walk away sad and upset.

Except, of course, it depends. Those in the military can deduct moving expenses if they meet certain requirements. Does that mean every Marine transferred from San Diego to North Carolina gets the deduction?

Again, it depends. Digging into the right online tax advice might get you the answer, but no good tax accountant will say it absolutely applies to you unless we have a signed engagement letter and money coming our way. Otherwise, the best you’ll find online are guideposts.

Taxes Are Complicated

The bigger issue with online tax advice is that taxes are complicated, and people get tax rules wrong all the time.

I’m not going to point fingers, but I was inspired to write this post after reading an article from a major, reputable news site that reported on a tax change about as accurately as your Uncle Cleo on Facebook.

The tax advice was worse than useless. If you followed what this person said, you’d get in trouble with the IRS.

Taxes are complicated, and a typical news service isn’t going to have fact checkers on the substance of the tax law because—and I know this is going to blow your mind—neither the reporters nor the editors really understand the tax law.

It’s not just reporters. When the 2017 TCJA Tax Reform came out, CPAs were writing while they were still putting the facts together. If you took some of the early tax advice, you probably got it wrong since THEY got it wrong.

How To Get Good Online Tax Advice

The best place for tax advice is to hire a personal CPA. They’ll look at your whole situation. Of course you’ll want to hire a GOOD CPA, but that’s a topic for another time.

CPAs are expensive, though. I know, I’ve sent out plenty of those bills.

If you’re just looking for a bit of guidance, do a few checks to get some confidence in the writer. Writers that have one or two articles about tax and a million other articles about something else (usually it’s finance, budgeting, or investing) are probably not experts. If, however, they write mostly about tax, it’s probably safer.

When I’m going for online tax advice not from my paid sources, I’ll go to The Tax Advisor, which is a journal put out by the AICPA (plus I’ve written for it, so it must be good!). I’m also a big fan of fellow Coloradan Tony Nitti. Though both write for tax practitioners more than for individuals.

If you’re looking for someone who writes more for the individual, check out Kelly Phillips Erb.

 There’s certainly more out there, but those are ones I can recommend. If you find someone else, do a little background checking before you take what they advise at face value.