Procrastinators, take note: The 2023 tax season is nearing its final month. But don't let that fast-approaching deadline lead to you making mistakes on your return. The Internal Revenue Service (IRS) has issued multiple warning about the tax errors to avoid this year—and when it comes to incorrectly claiming certain credits, the penalties could be serious. Now, a new alert warns about credits that could get you audited and fined. Read on to find out what you'll want to steer clear of on your tax return.
As taxpayers know well, credits can really help you out come tax time—which is why financial experts advise against letting those you're eligible for go unclaimed.
"Credits can reduce the amount of tax you owe," the IRS explains. This means you could end up significantly lowering how much you have to pay in taxes when filing your return, according to the agency.
Some credits may also be refundable or partially refundable, meaning you could actually end up getting money back from the IRS. If you claim certain credits on your tax return, "you may be able to get a larger refund, while others may give you a refund even if you don't owe any tax," the agency states.
Credits don't come without risk, however. In fact, claiming credits you're not eligible for could get you in major trouble with the IRS.
Scammers have been steadily pushing people to claim credits they aren't actually eligible for this year. In a March 23...
The Department of the Attorney General says the man claiming to be the state’s chief technology officer at national conferences and on online platforms is not affiliated with the state of Hawaii a...