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There are few things scarier than the looming tax deadline. As April 15 approaches, many taxpayers are struggling to collect their forms and file documents.
However, for some people, starting the tax filing process can be daunting. For those struggling with where to start, here’s how ChatGPT can help with tax filing.
Also check out four smart steps to take before filing your taxes.
1. Understanding the Basics
While nothing can replace the expertise of a tax professional, an artificial intelligence (AI) assistant can help taxpayers understand basic information. According to ChatGPT, it can help individuals understand key concepts, including what income is taxable, the standard versus itemized deductions and how tax brackets work.
As reported irMost tax mistakes can be avoided. Understanding basic tax information can help people avoid common errors, such as missing deductions or using the wrong filing status.
2. Organization of information
Another way ChatGPT may prove useful for tax filers is to become more organized. The chatbot said it can assist people by creating tax preparation checklists, listing common documents required or helping to categorize expenses for deductions.
For many people, just knowing what to collect is half the battle.
3. Estimating Tax Liability
While ChatGPT clearly mentions that it cannot access an individual’s financial accounts, it can help calculate roughly taxable income if the data is provided. The AI assistant can also show how the adjustment may affect the refund or amount owed.
Most mistakes on tax returns are avoidable, so it’s never a bad idea to use a system to double-check the data. according to TurboTaxThe IRS found approximately 2.5 million math errors on tax returns in a single year. If the numbers differ significantly from expected, it could be a red flag and it’s worth taking another look to ensure accuracy before filing.
4. Interpreting IRS changes
Depending on the year, there may be many changes in the tax law. ChatGPT can help by providing taxpayers with information about these changes and how they may impact filing.
While AI assistants have come a long way, it is always strongly recommended to work with a tax professional or verify information.
5. Help with forms
While ChatGPT cannot physically fill out tax forms on behalf of the payer, it can explain the most commonly used forms for each situation and provide step-by-step guidance on how to fill out each section.
It is important to note that chatbots cannot also collect or file taxes. It also will not provide personalized legal or tax advice. These are best left to licensed professionals.