Scammers are using fake online tools to promise big refunds. The IRS urges filers to only use trusted, official tax calculators.
Tax tips for the April 15 filing deadline
Tax Day is just around the corner and FOX 13’s Craig Patrick shares the latest information ahead of the April 15 deadline.
Fox – 13 News
- The IRS is warning taxpayers to be wary of calculators and websites that promise big paydays or unexpectedly large refunds.
- Meanwhile, as of March 27, the IRS had issued more than 62.9 million tax refunds. The average refund amount was $3,521, an increase of 11.1% ($351) year over year.
We’ve all used online calculators for a variety of purposes, including estimating our mortgage payments, figuring out how inflation has reduced our purchasing power, and figuring out how much we can afford to make monthly car loan payments when buying a car or truck.
But wait, the Internal Revenue Service is warning you about questionable online calculators that some people are using to reap massive tax relief benefits. The IRS said some “fake tax credit calculators” are abusing the new tax law under the One Big Beautiful Bill Act online.
“Some scammers may attempt to defraud taxpayers by making false promises about eligibility for new or expanded tax credits or deductions,” the IRS said.
Of course, many taxpayers are researching every detail they can right now to reduce the amount of taxes they owe when they file their 2025 federal income tax returns. Or get a bigger income tax refund.
There are less than two weeks left until the April 15th deadline.
IRS tax season by the numbers
So far, the Internal Revenue Service has received 88.4 million individual income tax returns through March 27, a decrease of 1.3%, based on the IRS’s latest seasonal statistics.
The IRS processed 87.5 million returns through late March, down 1.1% from the same period last year.
As of March 27, the IRS has issued more than 62.9 million tax refunds. The average refund amount was $3,521, an increase of 11.1% ($351) year over year.
Overall, the IRS has issued $221,697 million in tax refunds through March 27, an increase of 13.6% from the same period last year.
There’s a lot of talk about increased refunds, but many people won’t qualify for the new tax breaks, and the additional refunds won’t be that large. But that doesn’t stop scammers from promising months and days to get your ID information or cash.
How fake tax calculators lure taxpayers with promises of huge refunds
The IRS received several complaints last fall about several questionable calculators on the Internet that falsely promised to help people find higher refunds.
Scammers know how to create online tools and “calculators” that make it appear as though you are entitled to an unusually large income tax refund when in fact you are not.
According to the IRS warning, “It’s best to always be cautious with your financial data. Use only official and trusted sources for tax calculations and information, especially when using online tax credit calculators and software.”
How to protect yourself from tax calculation scams
This tax season, the IRS tells taxpayers to:
Don’t be fooled by wild claims. “Be wary of calculators and websites that promise big paydays or unusually large unexpected refunds,” the IRS says.
“Tools that promise big paychecks are likely phishing attempts that trick people into revealing personal information such as their date of birth, Social Security number, or bank account information,” the IRS said.
Please understand that no one can guarantee: Taxes are complicated. No one can guarantee a refund. Legal calculators provide estimates, but those estimates depend on the accuracy of the information entered by the taxpayer. According to the IRS, results are only reliable if the starting point of the data is correct. According to the IRS, “expect estimates, not guaranteed calculations.”
Look at the URL carefully. “For official government resources, only use sites that end in .gov. Watch for misspellings such as irsgov.com or irs-gov.org instead of IRS.gov,” the IRS warns. The IRS recommends that you only use the official IRS website or the sites of well-known, established tax software companies.
The IRS has a withholding estimator and a sales tax credit calculator, and IRS.gov has a page dedicated to credits and deductions for individuals.
Think carefully: If you suspect a scam, don’t click on any links or open any suspicious messages. You can forward the fraudulent site or email to phishing@irs.gov or file a complaint with the Federal Trade Commission or Treasury Department.
What you need to know about the new tax credits under the One Big Beautiful Bill Act
Millions of people are receiving more tax refunds, or a reduction in the taxes they currently owe, by claiming four new credits that are part of the One Big Beautiful Bill Act. New auto loan interest deduction. Deduction for qualified tip income. Deduction of eligible overtime pay. New enhanced deductions for taxpayers age 65 and older.
But you don’t want to find yourself in a situation where you jump on a half-truth you find on a social media post or a random website with a tax-related calculator and try to increase your refund.
The new tax credits listed in Schedule 1-A are fraught with complex limitations and income limits. These are not a one-size-fits-all solution to saving on taxes.
Contact personal finance columnist Susan Tompol: stompor@freepress.com. follow himr X @tompor.
