As Americans head into tax season, more people are turning to chatbot tools for help—but tax professionals warn that relying on artificial intelligence can create errors and privacy risks that affect refunds and potential audits. Recent social posts praising AI for producing larger refunds have drawn attention, but experts say those results still need human verification.
Elon Musk recently promoted his company xAI’s chatbot, Grok, after an executive shared an anecdote about a user who reportedly saw a bigger refund after double-checking a return with the tool. Grok runs inside X, joining other widely used systems such as ChatGPT and Claude as options taxpayers may consult this year.
Why experts urge caution
Tax professionals point out that a bigger refund does not guarantee a correct or compliant return. Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals and an enrolled agent, says filers should review past returns to understand year‑to‑year changes before accepting AI suggestions.
Complexity is another concern. Major tax-law changes passed in 2025 introduce new credits and phase-outs that can interact in subtle ways across different parts of a return. Michael Deering, a CPA and tax services partner, warns that those “nuances” — such as income-based phase-out rules — can be difficult for an AI to interpret accurately without full, validated data.
Data privacy also factors into the caution. Even professionals who use AI to speed internal workflows recommend never submitting sensitive personal details—like Social Security numbers or account information—into a chatbot unless you control the environment and understand its data-retention policies.
How taxpayers are responding
A recent January survey by Invoice Home suggests growing skepticism: 37% of filers in 2026 said they would trust AI over a tax professional, down from 43% in 2025. The company polled roughly 2,000 taxpayers, reflecting a modest but noticeable pullback in confidence as people weigh convenience against risk.
At the same time, many mainstream tax-preparation platforms now include their own AI features, blurring the lines between third‑party chatbots and built-in software assistance. That makes it especially important to know where your data goes and who is legally responsible for the final return.
Practical steps before using AI on your taxes
- Do not enter sensitive personal information into public or third-party chatbots. Treat them as research tools, not secure filing systems.
- Compare any AI-generated suggestions against prior-year returns and official IRS guidance; unexplained differences merit professional review.
- Verify calculations yourself or with tax software—AI can misapply phase-outs, credits or carryovers.
- Document sources and keep copies of supporting records in case questions arise later.
- Consult a licensed preparer for complex situations, such as business income, multi-state filings, or new tax-law changes.
Ultimately, the responsibility for the accuracy of a tax return rests with the filer. Even when AI contributes to drafting answers or calculations, you sign and certify that the information is correct to the best of your knowledge. That legal and financial responsibility is why many professionals recommend using AI only as a starting point—not a substitute for careful review or expert advice.
For most taxpayers, AI can be a helpful research aid this season, but treating its output as provisional and validating recommendations through trusted sources will reduce the risk of costly mistakes or privacy breaches.
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Jordan Keller specializes in analyzing the US financial markets. With concrete recommendations, he helps you secure and boost your investments by providing strategies that adapt to market fluctuations.