Hamzaturkkol/Getty Images/iStockphoto
Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
Helping you become richer
trusted by
millions of readers
While taking advantage of tax breaks is a smart move to reduce your tax bill or maximize your refund, you could get into trouble if you’re not careful about what advice you follow online.
one in News release Through September 2025, the IRS noted that it had fined taxpayers more than $162 million for abusing tax credits, including some that did not exist.
If you don’t want to deal with rejected returns, expensive penalties or other problems with the IRS, here are four tax breaks you should consider.
fuel tax credit
The fuel tax credit is a valid tax break of approximately 18 cents (gasoline) or 24 cents (diesel and kerosene) per gallon. However, it is not as widely available as many social media posts claim.
according to irs rulesThis credit applies only to businesses purchasing fuel for non-taxable purposes, such as farming or off-highway use (for example, powering tools). Making a claim because you drive to work or operate your personal lawn mower may result in you being delayed or denied a refund and, in the worst case, fined up to $5,000.
Self-Employment Tax Credit
Some social media influencers reportedly spread information about a “self-employment tax credit” of up to $32,000. One ir The news release clarified that no credit exists under this name and instead it relates to the sick leave and family leave credits.
That statutory tax break was only available to self-employed and other eligible business taxpayers who took qualified COVID-19-related leave between April 2020 and September 2021. If you now try to claim a tax credit simply for being self-employed or taking time off due to illness, the IRS could impose hefty fines and even file criminal charges against you.
domestic employment tax claims
If you employ a housecleaner, nanny or any other domestic employee, the IRS may ask you to file this Schedule H Along with details of their income and employment taxes. This generally applies if your employee’s cash salary exceeds $2,800 in 2025 or $3,000 in 2026.
however, Smith Patrick CPA Firm It was noted that some taxpayers fall prey to social media advice that encourages them to create fake domestic workers. They then try to get refunds for payroll taxes or sick and family leave pay. This fraudulent move can mark up your tax return and cost you more money to the IRS.
Write off doubtful business expenses
Having a business means you can claim legitimate tax relief for “ordinary and necessary” expenses ir. Some examples include business-related profits, home office use, advertising and marketing expenses, business insurance premiums, and equipment depreciation.
Social media claims may lead you to blur the line between personal and business expenses. For example, you typically can’t forgive a golf trip with a potential client or everyday household expenses like clothing, groceries and child care. Additionally, you must account for any personal use associated with legitimate business expenses.
Check these to avoid tax fraud IRS Resources And if you have any doubts, ask an accountant.