Tax Credit Fraud
How the scam works:
Watch out for the American Opportunity Tax Credit scam happening these days, aka the Tax Credit Scam. Let's take a look.
Scammers promise refunds to people who have little or no income, claiming non-existent stimulus payments based on the American Opportunity Tax Credit. The crooks claim that they can get victims money back even if they weren't enrolled in or paid for college.
Watch the video below to see the American Opportunity Tax Credit exposed:
The American Opportunity Tax Credit is an official refundable tax credit for undergraduate college education expenses. This credit provides up to $2,500 in tax credits on the first $4,000 of qualifying educational expenses. The tax credit had a limited life span in the past: it was available only for the years 2009 through 2012. It was now extended through December 2017 by the American Taxpayer Relief Act of 2012. Therefore scammers use it, urging the victims to hurry and pay them to fill the tax forms out on their behalf.
How to avoid:
If you are unfamiliar about a so-called bonus credit for seniors or low income families, check out with government website before forwarding any personal information. If you are being approached with a promise of a “guaranteed refund” then you know it's a scam. Particularly, be aware of offers of free money with no documentation required or unsolicited offers to prepare a return and split the refund. Bottom line, if something sounds too good to be true it is!
How to report:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
How to protect yourself more:
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