AI is everywhere right now. It writes emails, creates content, helps with resumes, plans meals, and answers questions in seconds. Naturally, more people are asking: should I use AI to do my taxes?
I understand the temptation. Taxes feel complicated, time-consuming, and frustrating. When AI promises fast answers and easy solutions, it sounds like a smart shortcut. But here’s the reality, straight from a CPA who sees real tax returns, audits, and IRS notices every year: using AI for tax preparation is risky, and in some cases, it can cost you far more than you expect.
The biggest problem is that taxes aren’t a simple data-entry exercise. They depend heavily on context such as your income sources, how that income is earned, your business structure, your state rules, your deductions, and your timing. Even decisions that didn’t seem tax-related at the time can change the outcome of a return.
AI doesn’t actually understand your financial situation. It predicts responses based on patterns and probabilities, not by applying tax law to your specific facts. Two people can earn the same amount of money and have completely different tax results. AI tax preparation tools often struggle with nuances like whether income is active or passive, whether business losses are allowed, how state tax laws override federal rules, or whether a deduction applies this year or not at all.
Another major issue is that AI confidently gives incorrect tax advice. This is one of the most dangerous aspects of relying on AI for taxes. AI doesn’t flag uncertainty. It will reference deductions that no longer exist, apply outdated limits, combine rules from different tax years, or repeat guidance that used to be valid but isn’t anymore. The information sounds polished and authoritative, even when it’s wrong.
If you file a tax return based on incorrect AI advice, the IRS does not care where that advice came from. You signed the return. You are responsible for it. Any penalties, interest, or audit issues fall on you. Not the AI tool.
AI also fails to ask the right follow-up questions. A CPA doesn’t just plug numbers into software. They ask questions that can completely change the tax outcome. Did you start or close a business? Did you move? Did you sell investments or property? Did you take distributions or loans from your business? Did your spouse change jobs, benefits, or withholdings?
AI only responds to what you think to ask. Most taxpayers don’t know which questions matter most, and that’s where common tax filing mistakes happen. There’s no pause where AI says, “This answer changes everything.”
Tax law also changes constantly. Credits expire, thresholds shift, reporting requirements increase, and states don’t always conform to federal rules. Even the best AI tax tools rely on historical data, which creates a lag between new IRS guidance and how those rules are applied in real-world tax returns. A CPA isn’t just aware of the law. They know how it’s being enforced right now.
Then there’s the audit issue. If the IRS sends a notice, AI can’t represent you. It can’t explain intent, clarify classifications, or respond strategically. It can’t negotiate penalties or help defend your position. A CPA can. And if your return was built on AI-generated tax advice that turns out to be incorrect, your position is weaker because there’s no professional judgment behind it.
Many people believe their tax return is “simple,” but that assumption causes more regret than almost anything else. People who think their return is simple often miss deductions, misclassify income, overlook state issues, or file in ways that increase taxes over time. Simple does not mean low-risk.
That doesn’t mean AI has no place at all. AI can be useful for learning basic tax concepts, understanding terminology, organizing information, or generating questions to ask your CPA. Used that way, it’s a helpful educational tool. But it should not be the decision-maker for what goes on a legal tax document.
If you want to save money, time, and stress, the smartest approach is this: use AI to understand the “why,” and use a CPA to handle the “how.” A CPA doesn’t just prepare a tax return. They help you avoid mistakes, plan ahead, and make decisions that stand up to scrutiny.
AI is impressive. Taxes are serious. Speed is not the same as accuracy, and confidence is not the same as correctness. When it comes to filing your taxes, this is one area where human expertise still matters.
