That tax calculator promising a big refund? The IRS says beware
That tax calculator promising a big refund? The IRS says beware
Susan Tompor, Detroit Free PressTue, April 7, 2026 at 10:02 AM UTC
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We've all turned to online calculators for one thing or another — estimating a mortgage payment, crunching out how inflation has cut into our purchasing power, figuring out the possible monthly payment for a car loan when we're shopping for a car or truck.
But wait, the Internal Revenue Service now has a warning about some questionable online calculators that some are using for churning out the benefits of a tax break. The IRS says some "fake tax deduction calculators" are online exploiting the new tax law under the One Big Beautiful Bill Act.
"Some scammers may try to trick taxpayers by making false promises about eligibility for new or expanded tax credits and deductions," the IRS said.
Many taxpayers, of course, are digging up every detail they can at this point to try to cut down on how much they might owe in taxes when they file a 2025 federal income tax return. Or fingers crossed, get their hands on a fatter income tax refund.
The April 15 deadline is less than two weeks away.
IRS tax season by the numbers
So far, the Internal Revenue Service has received 88.4 million individual income tax returns through March 27, which is down 1.3%, based on the latest IRS seasonal statistics.
The IRS has processed 87.5 million returns through late March, down 1.1% from the same time frame a year ago.
As of March 27, the IRS issued more than 62.9 million in tax refunds. The average refund was $3,521 — up 11.1% or $351— from the same time a year ago.
The IRS issued $221.697 billion in tax refunds overall through March 27 — up 13.6% from the same time a year ago.
While we're hearing much talk about bigger refunds, many people do not qualify for some new tax breaks and aren't seeing too much extra refund cash. But that's not stopping scammers from promising you the moon to get your ID information or cash.
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How fake tax calculators lure taxpayers with big refund promises
The IRS received some complaints last fall about some dubious calculators on the Internet that made false promises about helping people find bigger refunds.
The con artists know how to engineer online tools or "calculators" that will make it seem like you qualify for an abnormally large income tax refund when you really don't.
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"It’s always best to be cautious with your financial data," according to the IRS alert, "especially when using tax deduction calculators and software online. Use only official, trusted sources for tax calculations and information."
How to protect yourself from tax calculator scams
This tax season, the IRS is telling taxpayers to:
Avoid falling for wild claims: "Be wary of calculators or websites that guarantee a big payday or an unusually large, unexpected refund," according to the IRS.
"Any tool promising a guaranteed big payday is likely a phishing attempt to trick people into revealing their personal information, such as date of birth, Social Security number, or bank account information," the IRS said.
Understand that no one can make any guarantees: Taxes are complex. No one can guarantee the size of your refund. Any legitimate calculator provides an estimate and will depend on the accuracy of the information taxpayers put into it. The outcome is only reliable, the IRS says, if the data is correct to start. "Expect estimates, not guaranteed calculations," according to the IRS.
Take a close look at the URL: "Only use sites ending in .gov for official government resources. Be wary of misspellings like irsgov.com or irs-gov.org instead of IRS.gov," the IRS warns. The IRS suggests using only the official IRS website or the sites of well-known, established tax software companies.
The IRS has a Tax Withholding Estimator and Use the Sales Tax Deduction Calculator and a page dedicated to credits and deductions for individuals at IRS.gov.
Think twice: If you suspect a scam, don't click on any links or open suspicious messages. You can forward scam sites and emails to phishing@irs.gov and you can file complaints with the Federal Trade Commission or the Treasury Inspector General for Tax Administration.
What to know about new tax deductions under One Big Beautiful Bill Act
Millions of people are seeing bigger tax refunds — or reducing the amount of taxes they now owe — by claiming four brand new deductions that are part of One Big Beautiful Bill Act. The new deduction for new car loan interest. The deduction for qualifying tip income. The deduction for qualifying overtime pay. The new enhanced deduction for taxpayers 65 and older.
Yet you don't want to get into a situation where you try to juice up your refund by jumping at half-truths that you might spot on a social media post — or random website that features a tax-related calculator.
The new tax deductions found on Schedule 1-A come packed with complex restrictions and income limitations. They're not a one-size-fits-all kind of fix for saving money on taxes.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: IRS warns fake tax calculators are spreading this season
Source: “AOL Money”
