Most of the credits apply to homeowners, but renters may also be eligible for some credits. The credits are generally in two main categories. There are credits for energy-efficient improvements to your home after January 1, 2023. Other credits apply to improvements such as solar panels, wind turbines or battery storage.

1. Home Energy Improvements — Qualified home improvements made after January 1, 2023, may produce a 30% credit, with a maximum amount of $3,200. These improvements include qualified doors, efficient windows and skylights. Upgraded insulation and efficient water heaters, furnaces and heat pumps may also qualify. The maximum credit per year is $1,200 for home improvements, with a limit of $250 per door (with a maximum of $500) or $600 for windows. The limit for a heat pump, biomass stove or boiler is $2,000 per year. This credit is not refundable and may not be carried forward to future years.
2. Clean Energy Credit — A more comprehensive credit is available for energy improvements for your home. These could include solar panels, wind turbines, geothermal, fuel cells or battery storage. The Residential Clean Energy Credit is 30% of new qualified energy property. This usually includes solar panels, panels connected to a solar water heater, wind turbines, geothermal heat pumps, fuel cells or battery storage technology. The water heater must be certified by the Solar Rating Certification Corporation. A geothermal heat pump must meet Energy Star requirements. New batteries must have a capacity of at least 3 kilowatt hours. The clean energy credit has no dollar limit and may be used for eligible items installed in 2023 through 2032. The credit is not refundable, but unused credit amounts may be carried forward to future years.

The IRS emphasizes that it is important to keep good records. For most individuals, the credit will apply to solar panels and battery storage. For the home credit, you may read IRS Publication 5967, Energy Efficient Home Improvements Credit for more information. If you are installing solar panels, battery storage or other energy improvements, you should review Publication 5968, Residential Clean Energy Credit for details.

Editor's Note: In many states, there has been a substantial increase in the cost of electricity each year. Energy efficient improvements to homes become more valuable each year. The cost for solar panels and batteries is often measured through a payback period of years. With reduced electricity and natural gas costs, homeowners also should consider the increased home value with these energy improvements, which may cover most or all the energy improvement costs.

Without additional funding from Congress, the Affordable Connectivity Program (ACP) is winding down and will end in mid-May. The ACP is a government subsidy that has provided millions of eligible households with a discount of up to $30 per month toward home internet service. The benefit also provides up to $75 per month for households on qualifying Tribal lands.

The ACP was initially born in 2021 out of a pandemic-era program called the Emergency Broadband Benefit. It was replaced six months later by the longer-term ACP when Congress devoted $14.2 billion to the program as part of the Infrastructure Investment and Jobs Act.

More than 23 million households are currently enrolled in the ACP which has significantly helped close the digital divide, as affordability has been the primary barrier that has kept most ACP beneficiaries from obtaining home internet services. But funds are almost exhausted, and lawmakers have not provided additional funding for the program at this time.­­­

What to Do Now?

A first step in securing affordable home internet services is to contact your current provider to find out if they offer any other discounts or low-cost services that fit your budget. If none are available, it is best to explore other providers. There may be nonprofit organizations that can help you find low-income discounted internet services from providers in your area.

Some cities and states are also offering their own subsidies to help low-income households pay for internet services. The best way to find these programs is searching online for internet resources in your area.  

Check Lifeline Benefit

If you have not already done so, you should determine if you are eligible for the Lifeline program. Unlike the ACP, Lifeline is a permanently funded federal assistance program that provides a $9.25 monthly subsidy that can help pay for home internet, phone or bundled services (up to $34.25 if you live on Tribal lands). Only one benefit is available per household.

To qualify, your annual household income must be at or below 135% of the federal poverty guidelines, which is $20,331 for one person or $27,594 for two in 2024. You may also qualify if you, or someone in your household, receive certain types of government benefits such as Medicaid, Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), public housing assistance, veterans' pension or survivors pension benefit or live on federally recognized Tribal lands.

You may apply for Lifeline online at LifelineSupport.org, via mail or through your internet or phone provider. If you need additional assistance or have questions about the process, call the support line at 800-234-9473.

Other Options

If you find that you are not eligible for any assistance programs, you may still be able to save on your internet costs by shopping and comparing. The best way to do this is to search online for a list of internet providers in your area, along with pricing and download speeds. Most providers offer plans under $50 monthly, and you may receive additional discounts for bundling with a cellphone plan or signing an annual contract. 

Another way to save some money is to buy your own equipment. Most internet service providers charge around $15 per month to rent a modem and router. However, you may purchase your own for less than $200, which will likely pay for itself within the first year.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

On May 1, 2024, the Internal Revenue Service (IRS) reminded taxpayers that soon it will be prime season for natural disasters. The National Wildfire Awareness Month is May and National Hurricane Preparedness Week starts May 5, 2024.

All individuals should use this time before the natural disaster season to protect your important tax and financial information. While major disasters normally occur during the summer months, the Federal Emergency Management Agency (FEMA) has already issued 25 Federal disaster declarations for winter storms, flooding, tornadoes, wildfires and landslides in 2024.

There are several helpful tips to protect your personal financial and tax information. Additional information is also available on IRS.gov or FEMA.gov.

1. Protect Important Documents — Your original documents may include tax returns, Social Security cards, marriage certificates, birth certificates and deeds to real property. These should be secured in a waterproof and fireproof container in a safe location. You also may want to make copies of important documents and protect them in a safe deposit box or send them to a trusted person in a different secure location.
2. Record of Valuables — With the ease of taking pictures or videos with the camera on your cell phone, you should have a record of your high-value items. These photos or videos will be important if you lose the items in a natural disaster. Your insurance company may be willing to pay a substantial value if you have a good record. Some insurance policies require items with high values to be specifically named in the policy prior to an incident. The IRS also offers Publication 584, Casualty, Disaster, and Theft Loss Workbook, which can be very helpful to you if you have a loss due to a natural disaster.
3. Rebuild Your Records — After any disaster, you may have a challenge in reconstructing or rebuilding your records. These records could be essential for receiving a federal grant or an insurance company payment. If you can accurately estimate your loss through records, the insurance adjuster will be able to justify the payments. The IRS has a Reconstructing Records webpage on IRS.gov that may be helpful.
4. Employer Fiduciary Bond — If you are an employer, you may have a problem with a payroll service provider. Your payroll service provider is obligated to make timely federal tax payments. There should be a fiduciary bond that protects you as an employer if your payroll service provider is in a natural disaster and defaults.
5. IRS Tax Relief — If FEMA declares a federal disaster zone, the IRS frequently postpones tax filing and payment deadlines for individuals and businesses located in that geographic area. If you are within the disaster area, you will not need to contact the IRS. The IRS automatically identifies taxpayers with a business or personal address in the covered disaster area. If you reside outside the covered disaster area but have been impacted by the disaster, you may call 866-562-5227 to determine whether you qualify for relief.

Editor's Note: The summer months are a prime time for hurricanes, tornadoes and wildfires. This IRS guide is helpful to make sure you are prepared for a disaster. Many natural disasters occur without warning, so your preparations now may be essential for receiving a prompt government grant or insurance payment.

Finances are a common problem for the 2.3 million grandparents who are raising their grandchildren today. To help with the day-to-day expenses, there are a wide variety of programs and tax benefits that can make a difference in stretching your budget. Here is an overview of different benefits that are available to help families.

Financial Assistance

A first step is to determine whether your family qualifies for your state’s Temporary Assistance for Needy Families (TANF) program, which may include cash assistance, food benefits, utility bill assistance and free or low-cost daycare. If your household income is too high to qualify as a family, ask about the “child-only grant” which is based solely on the grandchildren’s income and needs.

You should research if you are eligible for foster care payments as a relative caregiver or if your state offers any additional programs like guardianship subsidies, non-parent grants or kinship care. Adoption assistance payments are also available to adopted grandchildren with special needs. To inquire about these programs, contact your state’s TANF program or your state’s Department of Human Services. Contact information for each state can be found by visiting ACF.hhs.gov/ofa/map/about/help-families.

Your grandchildren may also be eligible for Social Security, including benefits for dependent children, survivor benefits or Supplemental Security Income. Visit SSA.gov or call 800-772-1213 for more information. Your grandchildren may also qualify for free or low-cost health or dental coverage through your state’s Medicaid or Children’s Health Insurance Program. A comprehensive list of resources and coverage information can be found at InsureKidsNow.gov or by calling 877-543-7669.

You may also use Benefits.gov, the official benefits website of the federal government. This website has a helpful screening tool that identifies programs you and your grandchildren may be eligible for and will direct you to the appropriate agency for applications.

Tax Benefits

In addition to financial assistance programs, there are a range of tax benefits that you may qualify for including the Earned Income Tax Credit, for those with moderate to low incomes, and the Child Tax Credit, which is worth up to $2,000 per qualifying dependent. If you are working and are incurring childcare expenses, the Child and Dependent Care Credit may be claimed. If you legally adopt your grandchildren, the Adoption Tax Credit also provides a federal tax credit of up to $16,810 in 2024.

You may deduct medical and dental expenses if you and your qualified dependent grandchildren’s healthcare costs exceed 7.5% of your adjusted gross income for the year. Furthermore, your qualified dependent grandchildren’s college expenses may be offset by an education-related tax credit, such as the American Opportunity tax credit and the Lifetime Learning tax credit. Besides tax credits and deductions, if you are unmarried and qualify for “head of household” status based on your dependent grandchildren when you file your tax return, you will benefit from a higher standard deduction and a lower tax rate than you would filing as single status.

Legal Help

You should consult with an attorney to discuss the pros and cons of obtaining legal guardianship, custody or adoption. Without formalized custody arrangements, you may not be eligible for many of the financial assistance programs listed above. Formal custody can also help with things like enrolling your grandchildren in school or consenting to medical treatment.

You may visit the Eldercare Locator, a public service of the U.S. Administration on Aging, online at www.eldercare.acl.gov/Public/Index.aspx or call 800-677-1116 for referrals to legal services in your area. There are also online resources that act as a clearinghouse for information on financial assistance, adoption and foster care.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Can you help me find retirement communities that offer a range of housing options and care services, from independent living to nursing home care? I plan to downsize from my current home, and I want my next move to be my last.

If you want your next move to be your last, an all-inclusive retirement community – also known as a continuing-care retirement community (CCRC) – is a great option to consider. Here is what you should know and some tips to consider.

What are CCRCs? CCRCs are distinct from other types of senior accommodations because they provide a comprehensive range of housing, services and care options available in one convenient location. While the appearance and services of CCRCs can vary greatly, most provide apartments or sometimes single-family homes for active independent seniors.

CCRC Features: CCRCs offer onsite assisted living for seniors who require help with daily living tasks like bathing, dressing or going to the bathroom as well as nursing home care for residents when their health declines. CCRCs also provide a variety of resort-style amenities and services that include community dining halls, exercise facilities, housekeeping and transportation as well as social and recreational activities.

CCRC Costs: The national average entrance fee for CCRCs is approximately $320,000, but these fees can range from less than $100,000 to more than $1 million. In addition to the entrance fee, there are ongoing monthly fees that generally range from $2,000 to $5,000 for singles ($3,000 to $6,000 for couples) depending on the facility, services and the contract options chosen.

With more than 2,000 CCRCs in operation throughout the U.S, finding a facility that fits your lifestyle, needs and budget will require some legwork. Here are some steps that can help you proceed:

Make a list: To find CCRCs, various websites maintain databases that will match you to a community based on your preferences. Once you have located a few, contact each community to inquire about vacancies, pricing and the availability of services wanted.

Take a tour: Many CCRCs encourage potential residents to stay overnight and have a few meals in their dining hall. During your visit, notice the upkeep of the facility and talk to the current residents to see how they like living there. Also, take a tour of the assisted living and nursing facilities and learn how decisions are made to move residents from one level of care to another.

Do some research: While on your tour, find out who owns the CCRC and review a copy of their most recently audited financial statement. Another important statistic is their occupancy rate. Unless it is a newer community, occupancy below 80% can be a concern that the facility is having financial or management problems.

To investigate the CCRC’s long-term care services, contact your state long-term care ombudsman to inquire if the assisted living or skilled nursing care has a history of complaints or problems. You can also research quality of care on Medicare’s nursing home search tool at Medicare.gov/care-compare.

Understand the contract and fees: CCRCs generally offer three types of contracts. Life-care contracts, or Type A, have the highest entry fee but cover all levels of long-term care as needed. Modified contracts, or Type B, have lower entry fees but limit long-term care services. Fee-for-service contracts, or Type C, offer the lowest entrance fees but require you to pay extra for long-term care if you need it.

Before signing a contract, you should understand how annual price increases will occur. Other important topics to review are how much of your entry fee is refundable if you move or die and what happens if you outlive your financial resources. To help you sort through these issues, consult with your financial advisor or lawyer before signing any documents.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

On the final weekend before taxes are due, the Internal Revenue Service (IRS) published two letters that caution taxpayers about the risks of tax advice found on social media and tax returns created by ghost preparers.

Millions of taxpayers regularly view various social media sites. However, the IRS explains that there are many inaccurate or misleading tax sources on social media. This misinformation can lead taxpayers into serious scams and trouble with the IRS.

IRS Commissioner Danny Werfel stated, "Social media is an easy way for scammers and others to try encouraging people to pursue some really bad ideas, and that includes ways to magically increase your tax refund. There are many ways to get good tax information, including [following] @irsnews on social media and from trusted tax professionals. But people should be careful with who they are following on social media for tax advice."

The IRS and Security Summit partners work together with state tax agencies to protect taxpayers. They highlight a number of fraudulent strategies that are recommended on the Internet.

1. Fraudulent Form W-2 — Taxpayers may be encouraged to use tax software to fill out false IRS Form W-2, Wage and Tax Statement such as a large income and withholding amount. Based on this false income and withholding, a taxpayer then files a fraudulent tax return and applies for a substantial refund.
2. False Form 7202 — IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, allows taxpayers to receive credits during 2020 and 2021. These credits are not permitted in 2023.
3. Fraudulent Schedule H — Another scheme encourages taxpayers to file a false Schedule H (Form 1040), Household Employment Taxes. The taxpayer claims he or she paid sick or family medical leave wages and therefore qualifies for a refund.
4. Fraudulent Form 8944 — IRS Form 8944, Preparer e-file Hardship Waiver Request, is designed to be used by professional tax preparers. It allows the taxpayer to request a waiver to file a paper tax return, rather than an electronic return. This is not used by the typical taxpayer and cannot be used to avoid tax liability. If a taxpayer applies for a refund using this form, it is likely to lead to serious consequences including civil and criminal penalties.

The other problem that surfaces during tax season is a "ghost preparer." IRS Commissioner Danny Werfel noted, "Ghost preparers and other shady return preparers form a real threat every tax season to well-meaning taxpayers. By trying to make a fast buck, these scammers prey on seniors and underserved communities, enticing them with bigger refunds by including bogus tax credit claims or making up income or deductions. But after the tax return is filed, these ghost preparers disappear, leaving the taxpayer to deal with consequences ranging from a stolen refund to follow-up action from the IRS."

Qualified tax preparers are required to sign a return and include a valid preparer tax identification number (PTIN). Ghost preparers generally do not sign returns and follow other bad practices including shady fee practices, such as a cash-only payment with no receipt. The ghost preparer often will invent false income to try to increase tax credits or claim false deductions. Finally, it is a red flag if the preparer recommends sending the refund to another bank account rather than the taxpayer's bank account.

If you are aware of a ghost preparer, you can use IRS Form 14242, Report Suspected Abusive Tax Promotions or Preparers to alert the IRS.

We have been looking forward to traveling, but my spouse has a heart condition and back problems. What tips can you offer those with health issues who are planning to travel?

A dream vacation can turn into a nightmare if you get ill or injured while you are away and are not prepared. Before traveling, here are some tips to help ensure a safe trip:

Be prepared: Before you go, talk with your doctor about your travel itinerary and what precautions you need to take prior to traveling. You should also have your doctor's contact information with you when you travel, as well as a list of the medications you are taking in case you need emergency medical care while you are away.

It is also a smart idea to locate health clinics or urgent care facilities near the areas you are visiting. Your hotel can help you with this or a simple internet search can identify nearby health care services. If you are traveling abroad, the U.S. consulate or embassy in the countries you are visiting may provide referrals.

If you are traveling outside the U.S., you should find out the conditions in the countries you are visiting and what, if any, vaccinations or preventative medications are recommended. See CDC.gov/travel or call 800-232-4636 to get more information.

Check your insurance: If you have private health insurance or a Medicare Advantage plan through an HMO or PPO that covers in-network doctors only, check your plan to find out what is covered should you require medical care when traveling outside of your geographic area.

Beneficiaries that have original Medicare are covered across the U.S. However, if you are traveling abroad, coverage is typically not included, except for rare circumstances. Nevertheless, some Medicare Advantage plans and some Medigap supplemental policies do provide limited coverage. It is important to note that most private health plans do not pay health care costs outside the U.S. It is advisable to verify coverage details prior to travel.

Many individuals traveling abroad purchase travel insurance with medical coverage. Depending on the coverage purchased, these policies can include reimbursement if there is a trip cancellation, payment for medical treatment received overseas or costs for medical evacuations. It is best to get a policy that covers preexisting medical conditions.

Organize your medications: Make sure you have a sufficient supply of medications to last the entire duration of the trip. If traveling by air, you should pack necessary medication in your carry-on bag, in case your checked luggage is lost or misdirected. It is best to keep your medications in their original packaging to get through airport security without delays. Additionally, carrying a note from your doctor that explains why you take these medications, especially if syringes or other medical supplies are involved would be advisable.

For airport security requirements visit TSA.gov – and click on "Disabilities and Medical Conditions." You can also call TSA Cares at 855-787-2227 prior to traveling with questions about screening policies, procedures and what to expect at the security checkpoint.

Maximize technology: Keep a list of your medications and other important health and medical information with you or on your smartphone to easily access and share with emergency health care providers when you are traveling.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Can you recommend some good cell phones for seniors?

For older adults, choosing a cell phone is not a one-size-fits-all proposition. While some seniors love the cutting-edge smartphones with advanced features, others will prioritize simple phones with basic functions. So, the best cell phone will depend on the user’s comfort with technology, preference and budget.

Best Cell Phones

To help identify the best cell phones for older adults it is important to consider what features users prioritize to narrow down the options. For example, some may choose full-featured smartphones because they are comfortable with technology. Others who are less tech-savvy will prefer phones with fewer features. Alternatively, individuals coping with vision, hearing or dexterity issues will want a phone with specific accessibility features tailored to their needs.

Smartphones: Smartphones will cater to users who are comfortable with technology and are willing to spend more for a top-tier smartphone with a range of accessibility, health and safety features. Typically, smartphones will include internet access, a web browser, email capabilities, high-resolution camera and the ability to download and run applications independently. There are numerous companies producing smartphones today, but the largest companies include Apple, Android, Samsung and Google. Each brand will have its own unique features and accessories with prices varying across different phone models. For tech-savvy individuals, it is recommended to research each brand to find the most suitable model. Many big box retailers have smartphones on display to allow consumers to test out features.

Cell Phones with Built-In Safety Features: There are cell phones that are specifically designed for seniors with memory issues or more-advanced cognitive decline. These phones feature uncluttered, simple functionality which allows users to stay in touch with family and friends while also reducing common problems such as unnecessary calls to emergency services, spam, and fraud. Such phones typically include safety features such as SOS links, nurse hotlines and fall detection.

Easy-to-Use Cell Phones: Today, phone companies are still producing easier to use phones, such as easy to navigate senior-centric smartphones and simplified flip phones if the user does not want or need all the functionality of a full-featured smartphone. Simple smartphones offer list-type menus, rather than icons and come with enhanced voice command technology to assist users. Other options for simple cell phones may provide large buttons, big screen type, preset dial options and easily accessible SOS emergency buttons that will alert preselected contacts by call and text.

In summary, selecting a cell phone for older adults will involve considering individual preferences, technological comfort and their specific needs. By evaluating these factors and researching available options, older adults can find devices that not only improve their methods of communication but are also tailored to their specific needs.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

As the April 15 tax deadline rapidly approaches, the Internal Revenue Service (IRS) reminded taxpayers that they have multiple filing and payment options. The IRS continues to recommend that taxpayers file returns electronically. The software used for electronic returns reduces possible tax errors. It also facilitates prompt refunds — most individuals receive a refund within 21 days.

Taxpayers with income of $79,000 or less may use the IRS Free File software. Individuals with higher incomes can use the IRS Free Fillable forms. A new option this filing season is IRS Direct File. The IRS tax software is available for basic returns in 12 pilot states. The IRS.gov website has additional information on the Direct File program.

The IRS also encourages individuals to use the Volunteer Income Tax Assistance (VITA) or the Tax Counseling for the Elderly (TCE) programs. These programs offer free tax preparation to most individuals or seniors. Members of the military also may benefit from MilTax, a Department of Defense program offering free tax return preparation.

Taxpayers are encouraged to use the "Where’s My Refund?" tool. This helpful program on the IRS.gov website is available if you have your Social Security number, your filing status and your exact refund amount. You can also use the "Where’s My Refund?" service on your smartphone with the IRS2Go app.

If you owe taxes, you must pay the correct amount by Monday, April 15. An exception is available for residents of Maine or Massachusetts. Due to state holidays, their tax deadline is Wednesday, April 17, 2024.

There are multiple options to pay your taxes. An excellent method is Direct Pay from your checking or savings account. You may also pay with a debit card, credit card or digital wallet. The Electronic Federal Tax Payment System (EFTPS) is a convenient method. Many taxpayers use an electronic funds withdrawal from their bank account. Other options include a check or money order or cash. The cash payment is more complex and is explained on IRS.gov/payments/pay-your-taxes-with-cash.

If you are not able to pay your tax in full, there are both short and long-term payment plan options. A tax bill of less than $100,000 may be paid over 180 days with the short-term plan. If you owe less than $50,000 in tax, penalties and interest, the long-term payment plan may allow you to stretch out payments for up to 72 months. You may go to the webpage IRS.gov/payments/payment-plans-installment-agreements to view qualifications for payment plans.

If you are unable to file by April 15, you can use IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. The six-month deferral will allow you to file by October 15, 2024. However, you are required to pay the correct amount of tax by April 15th, even if you extend the filing date. You should estimate and pay your correct tax due. There are exceptions for individuals serving in a combat zone, those living outside the United States or taxpayers in certain disaster areas.

On March 28, the Internal Revenue Service (IRS) started the process of publishing the annual Dirty Dozen list. The first scams highlighted this year are phishing and smishing, which aim to steal sensitive information and use it for identity theft.

IRS Commissioner Danny Werfel stated, "Scammers are relentless in their attempts to obtain sensitive financial and personal information, and impersonating the IRS remains a favorite tactic. People can be anxious to get the latest information about their refund or other tax issues, so scammers frequently try using the IRS as a way to trick people. The IRS urges people to be extra cautious about unsolicited messages and avoid clicking any links in an unsolicited email or text if they are uncertain."

The Dirty Dozen campaign is designed to protect taxpayers from financial losses and the compromise of personal information or data. Each year, the IRS Security Summit attempts to educate taxpayers about the latest fraudulent schemes.

During tax season, fraudsters create new and powerful schemes. Both taxpayers and tax professionals are targets of email and text scams. A favorite fraudster strategy is to impersonate the IRS or a state tax agency. Taxpayers should be on guard to protect their information.

1. Phishing — A phishing attack is an email by a fraudster who often claims to represent the IRS. The most frequent use of phishing is the promise of a phony tax refund. Another strategy is a claim that you must respond immediately or you will face criminal charges for tax fraud.
2. Smishing — Nearly all taxpayers now have a smartphone with SMS text messaging. A text message by a scammer could be quite effective and look like it is from a trusted source. Text scams include messages such as, "Your account has now been put on hold," or "Unusual Activity Report," or a "Solutions" link to restore your IRS accounts. Taxpayers should not click on any of links as they could load malware on your phone.
3. Phishing Friend — An effective attack by a fraudster may use a stolen email account of a family member or friend. The fraudster logs on to the email service and sends you the email. Because you are accustomed to receiving emails from a family member or friend, you are much more likely to click on a link and unintentionally load malware on your computer.

A general rule is that you should never click on links or respond to these tax-related phishing or smishing attacks. You can forward emails to phishing@IRS.gov. If you are the victim of a monetary scam, you should report it to the Treasury Inspector General for Tax Administration (TIGTA), the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3).

There are specific ways to respond to a phishing attack. If you receive an email or a text message that promises you a large refund, an inheritance or claims you are a lottery winner, do not reply. Do not open attachments or click on any links. Forward the email to phishing@IRS.gov and delete the original email. For text messages, send the message to 7726 (SPAM). Additionally, you can email phishing@irs.gov and include both the Caller ID and message and thereafter delete the original text.

If you become aware of a tax scheme, you can report that to the IRS with Form 14242, Report Suspected Abusive Tax Promotions or Preparers.