IRS warns against viral social media "tax hacks" this tax season

The IRS is warning taxpayers to be cautious about viral tax advice spreading on social media platforms like TikTok, YouTube and Instagram. Many posts this 2026 tax season promise bigger refunds by tapping into "hidden" credits or deductions, from writing off a car or a pet to hiring your children as employees. 

But tax experts say following some of that advice can trigger audits, delays and penalties.

"Just enough truth to be dangerous"

Some online tips are based on real tax rules but leave out critical details.

"A lot of the advice you see does tend to have a kernel of truth to it," said Mike Valenti, tax director at Bryn Mawr Trust. "That said, they're often missing key points that don't make that strategy nearly as attractive or beneficial."

The issue has grown so large that the IRS issued another warning this season, urging taxpayers "to rely on trusted sources … not social media," when filing returns.

The cost of bad advice

Filing returns with false information, or claiming credits taxpayers don't qualify for, can lead to: 

• Refund delays
• IRS audits
• Financial penalties

According to the National Taxpayer Advocate's annual report to Congress, the IRS assessed more than $160 million in penalties last season tied specifically to improper claims linked to social media advice.

Advice to overstate your withholdings or claim a bogus "self-employment tax credit" is common tax misinformation shared on social media, according to the IRS.

Red flags to watch for

Before following online tax advice, experts say to:

• Check the credentials of the person giving it, like a tax attorney, CPA or enrolled agent
• Be skeptical of claims the "IRS doesn't want you to know"
• Question advice that sounds too good to be true

"Your tax return is like a book report, and the IRS already has read the book," Valenti said. "If you deviate from what they have, it's going to raise red flags."

Don't miss legit credits

While warning against risky shortcuts, tax professionals say many people miss out on real money by skipping legitimate credits and deductions.

Jackson Hewitt Chief Tax Information Officer Mark Steber said the IRS looks closely for missing income but does not fix missed credits for you.

"If you leave off a credit or a deduction, the IRS doesn't add it back," Steber said. "You leave it off, it stays off."

That includes credits and deductions tied to: 

• Earned Income Tax Credit
• Tips and overtime income deductions
• Deductions for interest on certain new car loans

Billions left unclaimed

In just one year, the IRS said more than $7 billion in Earned Income Tax Credit money went unclaimed.

Consumer advocates say slowing down, double‑checking sources and working with a qualified tax professional can help taxpayers avoid costly mistakes and make sure they don't leave money on the table.