Fact Finders: Growing tax refunds with social media hacks
April 11, 2024 – Published on CBS News 13 Tucson, AZ
Anyone on social media has probably seen clickbait telling you there are ways to make money from your tax return this year, by misusing certain forms.
13 Fact Finders checked with the IRS and a longtime security expert and found there is no “secret” way to increase your refund without setting yourself up for trouble.
Several schemes are circulating. The IRS Commissioner said the biggest, and potentially most criminal, is adding extra income and withholding to your W-2.
This scam encourages you to use false income information, make up a large income, larger withholding, and made-up employer, so you’ll supposedly get a refund for that large overpayment. This is illegal. Some influencers claim taxpayers can use Form 7202 to claim sick and family leave credits. These credits were for the pandemic period only, so such a claim would be fraudulent.
Another scheme involves filing a Schedule H form to increase your refund, by making up household employees you claim to have paid in cash. Obviously, this is also fraudulent.
“The problem is, this person doesn’t exist,” said Paul Keener, Field CISO, Southwest of Guidepoint Security. “The hope is, because the money is small, the IRS will not follow up on it. It’s a mistake…there’s one thing the IRS is very good at: getting their taxes.”
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