Since 2022, misleading tax advice shared on social media platforms, including TikTok, has resulted in $162 million in penalties for taxpayers, according to the IRS.

Social media “tax experts” often promote schemes and credit claims that are inaccurate or inapplicable to most taxpayers, causing confusion and financial harm.

The big picture: Common misleading advice includes promises of large refunds, easy tax savings, or eligibility for tax credits that do not apply broadly. • Two particular credits frequently misused due to social media misinformation are the Fuel Tax Credit and the Sick and Family Leave Credit. • The Fuel Tax Credit mainly applies to farming and off-highway business use and is not applicable to most individuals, contrary to claims made online. • The Sick and Famil

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