Can artificial intelligence help with your tax return? Experts urge caution
Artificial intelligence is already part of many peoples daily routine — whether for answering emails, organizing tasks, or even making everyday decisions. Tools like Grok, ChatGPT, Gemini, and Claude have become virtual assistants embedded in practically everything. And now, a new trend is getting attention: using these platforms to help when dealing with taxes.
Sounds convenient, right? But before letting a chatbot handle your finances with the IRS, there is an important point that experts are raising — and one you really cannot afford to ignore.
As Jon Hernandez, an artificial intelligence specialist, summed it up, the core message is clear: you can use AI to do your taxes, but you need to be aware that AI makes mistakes. And that warning is no exaggeration. It is the kind of detail that separates a smooth filing from a serious headache with the tax authorities.
Here is what experts recommend about preparation, the essential precautions, and when it is worth bringing in a professional consultant to close things out safely. 👇
What AI can actually do when the subject is taxes
When we talk about using artificial intelligence to better understand taxes, it is important to be clear about what these tools do well — and where they still stumble. Overall, large language models like ChatGPT or Gemini are excellent at explaining tax concepts in simple terms, helping organize documents, creating to-do lists, and even simulating basic financial scenarios. That alone is already a huge step forward for anyone who has always struggled to understand the technical language of tax obligations.
Carlos Garcia, president of Finhabits, illustrates how this relationship can work in practice. He said he uses AI to understand new tax strategies and new tax rules, but that at the end of the day, the responsibility for the return is still his. In other words, the tool serves as a shortcut for absorbing knowledge, not as a substitute for human judgment.
The problem starts when someone confuses a solid explanation with actual legal or accounting guidance. Generative AIs work based on training data, and depending on the tool, they may not be up to date with the latest changes in tax legislation. The IRS, for example, updates rules and tables regularly, and a model that was not trained on the most recent data can deliver outdated information with a confidence that looks — but is not — reliable.
On top of that, there is another detail that a lot of people overlook: artificial intelligence does not know your specific situation. It responds based on what you type, and if you do not know exactly what information to provide, the answer can be too generic to be truly useful. That is why using AI as a starting point to understand the context is valid, but relying on it exclusively to make tax decisions is a risk that experts do not recommend. 🚨
Receive the best innovation content in your email.
All the news, tips, trends, and resources you're looking for, delivered to your inbox.
By subscribing to the newsletter, you agree to receive communications from Método Viral. We are committed to always protecting and respecting your privacy.
If the chatbot makes a mistake, the responsibility is yours
This is a point that needs to be crystal clear. If artificial intelligence suggests a bigger refund than you are actually entitled to, or points to deductions that do not apply to your case, the one who will answer for it is not ChatGPT or Gemini. It is you. As the experts consulted by NBC 6 South Florida pointed out, if the chatbot delivers a larger refund than in previous years and the IRS comes knocking, the blame cannot be placed on AI.
This individual responsibility is something a lot of people do not consider before using these tools. Artificial intelligence does not sign your return, does not respond to audit notices, and does not show up at a tax hearing. All of that falls on the taxpayer. No matter how sophisticated the tool may be, it is only a supplementary resource — and treating it as anything more than that can get very expensive.
Jon Hernandez reinforced this idea by suggesting that even if you prepare your return with the help of AI — which can save many hours of a specialists work — the ideal approach is to have someone with technical knowledge review everything before filing. It is that double-check that can prevent a major headache down the road.
Recent legislative changes make the landscape even more complex
Another factor that increases the need for caution is the current legislative environment. In the United States, for example, several tax changes were approved as part of the Trump administrations legislative package known as the One Big Beautiful Bill. Among the most significant changes are an increase in the standard deduction, an expansion of the child tax credit, and new specific deductions for retirees over 65.
These changes are recent, and depending on when the AI model was trained, it may simply have no knowledge of them. That means the tool could fail to mention exemptions or deductions you are entitled to, resulting in a return that does not take advantage of all available legal benefits. And for anyone navigating state-level tax rules or niche filing situations, the logic is the same: tax authorities update rules, progressive tables, and deduction limits frequently, and blindly trusting an outdated model could mean losing money or, worse, making errors on your return.
AI platforms may not be aware of every exemption you qualify for. That is an important reminder, especially for those with a more complex tax situation involving multiple income sources, dependents, or diversified investments.
The precautions you need to take before anything else
The first major precaution when using artificial intelligence tools to deal with taxes is to never enter sensitive personal data into public AI platforms. It sounds obvious, but plenty of people have already typed in their Social Security number, bank account details, income figures, and even dependent information directly into chatbots without thinking twice. As the experts highlighted in the original report, your tax return contains sensitive personal information like your Social Security number, and that is information you may not want to share with AI. Depending on the platforms terms of use, that data could be used to train future models, and that represents a real privacy risk that should not be underestimated.
Another point that deserves attention is verifying the information that AI provides. No matter how complete and well-structured a response may look, it can contain technical inaccuracies or be based on an outdated version of the law. Before acting on what a chatbot said about deductions, exemptions, or income taxation, it is always worth checking the IRS website or specialized sources. A misinterpretation might seem minor, but in the tax world, small errors have the potential to turn into a very unpleasant audit.
There is also the matter of preparing your documents. A lot of people use AI to generate lists of what they need to gather for their return, which is great — but the actual organization of those documents needs to be done with human attention. W-2s, 1099s, medical expense receipts, mortgage interest statements, investment account documents… each of these items has a specific way it needs to be reported on a return, and AI can oversimplify a process that demands precision. The ideal approach is to use the tool for guidance, but review everything carefully before submitting anything to the IRS. 📋
The numbers show that trust in AI for taxes is declining
An interesting data point from a recent Invoice Home survey reveals a curious trend. In 2025, about 43% of taxpayers said they would consider using artificial intelligence in place of a professional tax preparer or accountant. That number dropped to 37% in the most recent survey. This suggests that as people gain more hands-on experience with these tools, they come to better understand both the benefits and the limitations involved.
This decline in the intent to use AI exclusively could reflect negative experiences, greater awareness of privacy risks, or simply a growing maturity in how the public relates to technology. Whatever the reason, the data reinforces something experts have been saying: AI is a complementary tool, not a complete solution.
As Carlos Garcia put it directly, you should use AI to enhance your work, but you should not depend 100% on it. That balance between leveraging the efficiency of technology and maintaining human control over important decisions is what separates smart use from reckless use.
How to prepare to use AI wisely in this process
Preparation is the key to turning artificial intelligence into a real ally when it comes to tax matters. The first step is understanding that AI works best when you already have a basic sense of what you need. In other words, the more you know about your situation — types of income, deductible expenses, assets and liabilities — the more precise the assistance the tool can offer. Going into a conversation with ChatGPT or Claude without any context is like asking for medical advice without describing the symptoms: the answer is going to be generic and might not be useful at all.
A solid strategy is to use AI in well-defined stages:
- Start by asking it to explain concepts you do not fully understand — what estimated tax payments are, how dividend taxation works, which expenses are deductible when itemizing, for example.
- Use the tool to create a personalized checklist based on your profile: self-employed, salaried, investor, property owner, and so on.
- Ask the AI to simulate scenarios, like the difference between the standard deduction and itemizing, to understand which makes more sense in your case.
- Never enter real personal data during these interactions — work with hypothetical figures to keep your information secure.
This kind of usage takes advantage of the best AI has to offer without exposing it to its most critical limitations, and it leaves you much better prepared for the moment you need a deeper analysis.
Finally, it is worth remembering that preparation also involves understanding the limits of the tool you are using. Each platform has different characteristics: some have real-time internet access and can pull more up-to-date information, while others work with fixed knowledge up to a certain date. Knowing these differences helps you calibrate how much you can trust each response and when it is time to seek a more robust source — whether that is an accountant, a tax attorney, or a specialized consulting firm. 🎯
When professional consulting is still irreplaceable
No matter how advanced artificial intelligence may be, there are situations where consulting with a specialized professional remains not just recommended, but essential. Anyone with variable income, operating as a business entity, receiving money from abroad, holding investments in stocks or other securities, or dealing with significant financial events from the past year — like an inheritance, a property sale, or a legal settlement — is facing a complex tax scenario that goes well beyond what any chatbot can safely handle.
Professional consulting offers something that AI simply does not have: technical accountability and contextualized knowledge. An accountant or tax specialist knows the specifics of current legislation, understands how to interpret recent changes, and more importantly, knows how to ask questions you did not even realize needed answering. This kind of human interaction is fundamental for identifying legal opportunities to save on taxes, avoiding inconsistencies on your return, and making sure everything is in compliance with what the IRS expects to find. It is not just about filling in boxes — it is about real tax strategy.
Jon Hernandezs recommendation sums up this dynamic well: AI can prepare the return and save hours of work, but having someone specialized review the result before filing adds a layer of security that no language model can offer on its own.
Another relevant point is that in the event of an audit or a notice of deficiency, having a professional who has been involved with your return from the start makes a tremendous difference. AI will not be there to represent you, explain choices, or redo a tax plan. A good consulting professional will. And when you combine the efficiency of artificial intelligence in organization and learning with the expert eye of someone who truly knows the subject, the result is a process that is much safer, more efficient, and smoother for everyone involved. 💼
AI and taxes: a summary of what works
To wrap things up, keep in mind that artificial intelligence is a powerful tool — but like any tool, it needs to be used the right way to deliver good results. In the context of taxes, that means using it to learn, organize, and prepare, always with the necessary precautions around privacy and information verification.
The key points that experts highlighted are straightforward:
- AI makes mistakes, and the responsibility for any incorrect information on the return belongs to the taxpayer.
- Recent legislative changes may not be reflected in available AI models.
- Sensitive personal data should not be shared with AI platforms.
- The ideal use of AI is as a support tool, not as a replacement for a professional.
- Human review before filing the return remains the safest recommendation.
Thorough preparation, combined with the support of solid consulting when the situation calls for it, is the smartest — and safest — path for dealing with the IRS without any surprises. Technology is here to make things easier, but common sense and a professional eye remain your greatest allies this time of year. 🤝
