As the Supreme Court has just upheld a law that could effectively ban TikTok by January 19 unless ByteDance sells the app, some creators have threatened a controversial response: refusing to pay their taxes.
Several influencers have taken to the platform to voice their intentions:
"If the government bans TikTok, I'm not gonna pay my taxes. TikTok is my job, alright. I get money from this," declared Spencer Hudson in a video that has since gone viral.
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TikToker Patricia Walker echoed this sentiment, questioning, "My place of employment no longer exists. What taxes? Uncle Sam, I'm sorry to tell you this, but what money?"
These and others on the app argue that if the government eliminates their primary source of income, it shouldn't expect to collect taxes from earnings that no longer exist.
With 170 million U.S. users, data show TikTok generated $18.49 billion in net advertising revenue in 2024. Top creators can earn substantial amounts, in at least one case, reportedly up to $23 million a year.
But while a potential TikTok ban will devastate some people’s livelihoods, not paying taxes isn’t an option. Here’s more of what you should know.
TikTok tax revolt erupts after Supreme Court ruling: ‘I’m not gonna pay my taxes’
A bipartisan law requires TikTok's Chinese parent company, ByteDance, to divest its ownership or face a ban from operating in the U.S. This legislation is set to take effect on January 19, President Biden's last full day in office, coinciding with President-elect Trump's inauguration.
As Kiplinger has reported, on Friday, the U.S. Supreme Court upheld the potential nationwide TikTok ban, which could dramatically alter the app's future in the U.S. and the lives and livelihoods of millions of users and content creators.
Key considerations for the court included whether the law infringes on First Amendment rights by limiting free speech for TikTok users and creators and if the government's national security concerns about data access and content manipulation by the Chinese government justified the ban.
Related: TikTok and the Supreme Court: Five Key Facts to Know
It’s unclear whether TikTok will actually “go dark” Sunday, but since the Supreme Court affirmed the ban, several TikTok creators have said they can't or won't pay their taxes.
Influencer @itsnickholiday posted a video saying, “If they ban this app, we are not paying taxes this year.” This creator added, “Besides the fact that rent is at an all-time high and so is food and so is gas prices, the people that are in charge of banning this app are literally paid by our taxes.”
Unfortunately, tax obligations don't disappear simply because a particular platform or business shuts down. The IRS requires individuals to report all taxable income, regardless of its source.
Some creators worry that without access to TikTok, they won't be able to retrieve their tax documents because they say their 1099s are uploaded to the app.
As @michellebellexo expressed, "...How will they know what I earned? They won't. They simply won't know."
It's worth noting that financial institutions and payment processors, not just TikTok itself, maintain earnings records and are required to report earnings to the IRS and taxpayers via a 1099-K form.
What happens if you don’t pay taxes?
The consequences of failing to report income or pay taxes can be significant, including penalties, interest charges, and potential legal action. The IRS has various methods to track unreported income, and deliberate tax evasion can lead to criminal charges.
Also, the threatened tax boycott doesn't account for income earned before any potential ban. Taxes on 2024 earnings, for instance, would still be due in April 2025, regardless of TikTok's status.
- Creators must report all taxable income from TikTok, including sponsorships, Creator Fund payments, virtual gifts, and advertising revenue.
- Many TikTok creators are self-employed, meaning they're responsible for income and self-employment taxes, often requiring quarterly estimated tax payments.
- To help offset this tax burden, creators can generally deduct reasonable and necessary business expenses, which, in some cases, can significantly reduce tax burden.
TikTok going dark: Bottom line
While creators' frustration at losing the platform is understandable, it's important to focus on tax strategies that don’t involve tax evasion.
Consider diversifying your income streams, exploring alternative platforms, and consulting tax professionals and financial advisors to navigate the transition if the app is ultimately banned in the U.S.
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