News Summary

Self-employed individuals are being urged to exercise caution amidst misleading claims about tax credits. Clear Start Tax has issued warnings against false promotions of a non-existent ‘Self-Employment Tax Credit’ that could lead to IRS audits and penalties. These deceptive claims have been circulating, particularly on social media, prompting taxpayers to claim refunds they aren’t eligible for, risking audits, financial penalties, and repayment demands. Clear Start Tax emphasizes the importance of verifying eligibility for any IRS credit through official channels and consulting trusted tax professionals. Meanwhile, updates on the legitimate Self-Employed Tax Credit (SETC) provide crucial information for eligible individuals affected by COVID-19. April 15, 2025, marks the final deadline for filing amended returns to claim up to $27,110 in SETC credits. This tax credit aims to provide financial relief to self-employed individuals who couldn’t work due to the pandemic. To claim the SETC, individuals must file IRS Form 7202 along with an amended tax return. It is vital for taxpayers and tax preparers to ensure proper claims to receive benefits without facing improper claims.