Using AI chatbots for tax filing may not be a good idea due to their limitations in understanding complex tax laws and mathematics. Although popular tax preparation companies like TurboTax and H&R Block have launched AI assistants, reviews suggest that they are not a substitute for human expertise. The AI chatbots can help with accuracy checks, provide explanations of completed returns, and offer language translation services. However, they struggle with answering specific and nuanced questions, especially regarding topics like cryptocurrencies and multi-state returns.
It is important to read the fine print and understand that AI chatbots are still in their early stages and may not always provide accurate advice. TurboTax and H&R Block emphasize that ultimate responsibility for tax filing lies with the taxpayer, and additional safeguards may be required for audit defense. While future versions of AI tax assistants may improve, human involvement and expertise are still crucial in ensuring accurate tax returns.
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An original version of this article appeared in CNBC's Inside Wealth newsletter, written by Robert Frank, which serves as a weekly resource for high-net-worth investors and consumers.
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