Figuring out taxes in a digital era
April 18th – or, as some like to call it, Tax Day – is fast approaching. 2021 saw a boom in cryptocurrency, online creators, and NIL deals that has left many young adults asking whether anyone knows the right way to file taxes. Today, we’re covering the modern era of taxes in a world where viral online moments and decentralized currencies rack up millions in revenue.
The excitement of NIL student-athlete deals is turning into a bit of panic as tax season shines a light on the financial ripple effects. As student-athletes receive expensive gifts like cars, clothes, and crypto – all of which must be claimed on tax returns – CPAs specializing in college athletic deals worry students are unaware of the need for cash to cover the taxes on these perks. Furthermore, some students have to pick between NIL deals and financial aid (yes, the aid that helped them get to college) as NIL deals look like capital gains on parent tax forms for which many students are still dependents. There’s a dire need for a sweeping rethink of taxes for Gen Z student-athletes as we enter this new NIL monetization era.
THE ONLY CONSULTANT
With 1.5 million OnlyFans creators, some entrepreneurs seek tax assistance from those who know the NSFW industry best. Specializing in assisting the modern-day sex worker, The Only Consultant delivers judgment-free tax assistance that helps empower creators through education on everything from tax ride-offs to wealth building. Founder Katherine Studley focuses on allyship as she provides CPA-certified tax consulting to over 100 clients made up of Gen Z and Millennial women seeking approachable, modern-day tax help. As the sex industry evolves and expands – and other types of niche entrepreneurs cash in – we see personalized financial consulting multiplying.
For the roughly 1 in 4 Americans owning bitcoin, tax season this year is extra confusing. So, brands like TurboTax and CoinBase are teaming up with CoinTracker, a software that currently tracks $50 billion in crypto assets (or 3% of the global crypto market) and produces IRS tax forms for easy filling. With a comprehensive breakdown built to help investors understand what crypto transactions are taxed from 2021, CoinTracker’s pricing model even makes it free for those with 25 or fewer crypto transactions. As the global society moves deeper into cryptocurrencies, we expect brands like CoinTracker that are built off engagement to lead the way within the Gen Z-led industry.
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