The IRS is warning taxpayers they may need to amend their returns if they filed for three specific tax credits.Many Americans may have fallen victim to misleading tax preparers or social media content that led them to think they qualified for the tax refunds courtesy of the credits. However, doing so could trigger delayed refunds or even jail time.The three tax credits causing issues this year are the Fuel Tax Credit, Sick Leave and Family Leave credits and household employment taxes.
Despite this, many are incorrectly using Form 7202 to attempt to get the credit based on income earned as an employee and not as a self-employed individual.Previously, the credits were available to employers who paid sick and family leave. That eligibility only went to employers with less than 500 employees.Household Employment TaxesAnother mistake many taxpayers made for tax returns this year was inventing fictional household employees and then filing a Schedule H .