Can You Trust AI To Help You Do Your Taxes? Accountants Weigh In
Written by
Yaël Bizouati-Kennedy
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The rapid growth and adoption of artificial intelligence is helping many individuals in an endless stream of ways. From the way we work to the way we conduct research, the nascent and ever-evolving technology is helping streamline and hasten many processes, making, in essence, life easier. But can AI also help you do your taxes? And can you trust it?
Brian Prince, CEO of TopAITools.com, said that as an advocate for leveraging AI in various domains, he sees its application in tax preparation as a promising advancement.
“In general, AI platforms excel at efficiency and numerical accuracy,” he said. “AI can process large amounts of tax-related data quickly, reducing human errors and ensuring a more accurate tax return. It can also identify deductions and credits that individuals might overlook, potentially saving money.”
Here’s what accountants and experts have to say about using AI to do your taxes.
Pros
According to Sean Lovison, CFP, CPA, founder and lead advisor, Purpose Built Financial Service, while AI shows incredible potential in many areas, relying solely on it for tax preparation requires caution.
Yet, Lovison argued that some of the benefits of using it to do your taxes include rapidity, as AI can crunch numbers and automate repetitive tasks with lightning speed, saving time, as well as its accessibility.
“User-friendly AI interfaces make asking tax filing questions less intimidating for some individuals than reading through the IRS [Internal Revenue Service] website’s thousands of pages of tax code,” he said.
While Lovison said he can’t recommend specific AI-only tax platforms, he added that many popular tax software options -such as TurboTax and H&R Block- now integrate AI in various ways to streamline data input or offer suggestions.
“The AI platforms included in these will be much more accurate than a general AI tool like ChatGPT or Gemini since the AI inside tax software has been vetted and trained on current data,” he added.
Cons
Experts and accountants also warned against the potential pitfalls of using AI to do your taxes.
For instance, tax laws are notoriously complex, with nuances and exceptions that AI might overlook, and an incorrect interpretation can lead to costly errors or missed deductions, according to Lovison.
Another factor: context.
“AI tools often work within specific parameters. They might not consider your entire financial picture or identify less common deductions — like state-specific tax breaks or alternative calculation methods for home office expenses,” he added.
AI also lacks critical thinking and can’t replace the judgment of a seasoned accountant.
“A human professional can evaluate grey areas, offer strategic advice, and advocate for you in case of an audit,” added Lovison.
Tatiana Tsoir, CPA, business expert and founder of The Bold Method, echoed the sentiment, noting that “90% of tax law is grey area.”
“As a CPA I often have to think and take a certain position — which cannot be frivolous — that will squeeze a bit more in your favor,” she said. “It requires analysis and interpretation of tax law that essentially uses tax law templates and customizes it based on your facts and circumstances.”
And last but not least, AI’s so-called “hallucinations.”
“AI can be prone to confidently providing inaccurate information,” said Lovisnon, noting that with tax laws changing frequently, deduction limits or eligibility criteria from previous years can easily be misrepresented.
“The time to check and double-check answers can quickly eat into the productivity gains you originally sought,” he said.
Is it Safe?
The IRS started using AI this tax season, mostly for auditing wealthy and high-earner taxpayers.
“The changes will be driven with the help of improved technology as well as Artificial Intelligence that will help IRS compliance teams better detect tax cheating, identify emerging compliance threats and improve case selection tools to avoid burdening taxpayers with needless ‘no-change’ audits,” the IRS said in an announcement.
Yet, when it comes to doing your own taxes, is AI safe and can you trust it with your personal information?
Tsoir said she questions the security of AI.
“As CPAs we are required to keep our clients’ information confidential and secure. What about OpenAI? Its emphasis on ‘open’? More questions than answers,” she added.
TopAITools.com’s Prince also warned against inputting your personal information into these platforms, including financial information or your Social Security number.
In addition, he said that he wouldn’t trust AI to provide tax advice without double-checking that the information is up-to-date and accurate.
“You can use AI as a guide, but always double check your information on the IRS.gov website or with a tax professional,” he said.
Lovison agreed, noting that while AI can be a helpful tool, it’s not a substitute -yet- for professional expertise, especially with complex tax situations.
“If you have a straightforward return, AI might be worth exploring. For maximum accuracy and peace of mind, consider consulting a qualified accountant,” he added.
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