Why shouldn’t I get tax preparation assistance from a chatbot? I use ChatGPT almost daily. I’ll ask the AI chatbot to provide me with a first draft of an email if I’m struggling with it so I can work on it. If I have limited time and need to read a lengthy article, I will ask ChatGPT to give me a synopsis and highlight the most important elements. I’ll ask it for a brief explanation if I’m interested in a new topic.

Despite my passion for ChatGPT, I am aware of its drawbacks and am used to the erroneous responses it sometimes produces. I would thus never utilize it for anything important, like tax-related matters.

This article is a part of CNET’s Taxes 2025 coverage, which covers the top tax software, tax advice, and all the other information you need to file your taxes and monitor your refund.
But what about AI chatbots used by tax preparation software providers like H&R Block? In most cases, they may help you with tax preparation by providing answers to often asked issues; but, they are not creating your tax return; they are only assisting you with the process. Additionally, they often form an element of a paid service.

See also: These 6 Typical Tax Errors May Lead to an IRS Audit. What to Avoid Is Here.

Watch this: 03:28: 5 Tax Tips for 2024
It’s tempting to believe that ChatGPT can prepare your taxes because of all the hoopla around it. Your taxes are due on April 15th, by the way. Here are some reasons why you may want to think twice before hiring ChatGPT to assist you with your taxes this year.

Here are our recommendations for the top tax software and information on how to monitor the progress of your tax return.

Reason No. 1: ChatGPT is unable to provide you with current and correct tax information.

Things are always changing in the tax world. For instance, there have been a number of changes to tax laws for this tax season: The IRS has raised mileage rates, modified tax deductions, raised tax brackets, and broadened the list of those who may submit their taxes for free via IRS Free submit. And it only applies until 2024.

badge art for tax tips
Why, therefore, is this an issue? Any changes to the tax law beyond January 2022 and April 2023—the knowledge cutoff dates for ChatGPT 3.5 and the paid ChatGPT 4.0—will not be included in ChatGPT’s training data. You must prepare your tax paperwork in accordance with current tax laws in order to submit an appropriate tax return, and ChatGPT is unable to assist you with that.

Scott Brillhart, a partner at the Chicago-based full-service accounting company Founder’s CPA, told CNET, “Tax is constantly changing.” “It’s unclear, particularly with regard to state-level taxes. I don’t believe that ChatGPT or any other AI service is presently capable of comprehending or handling such levels of complexity, particularly if it isn’t continuously updated.”

Reason No. 2: Avoid providing ChatGPT with your private financial information because hackers

never give ChatGPT or any other AI chatbot access to your address, Social Security number, or banking details.

When you use ChatGPT, it saves your personal data and use information, including any files you upload, input data, and prompts. On its own, it may not be a big issue, but ChatGPT has seen data leaks.

When OpenAI found that ChatGPT had a fault that let certain users see other users’ conversation histories, it pulled the chatbot offline in March 2023. After a developer found the weakness and made a public post about it, OpenAI later rectified a data breach in December.

Any personal information you put into ChatGPT may be accessed by unauthorized users after a data breach. They might then use this information to defraud other users, steal your identity, or tap your bank account, among other things.

Reason No. 3: ChatGPT isn’t good at math

ChatGPT can assist you with a variety of tasks, such as creative tasks or language-related challenges, but it is less proficient in mathematics and, like other large language models (or LLMs), has trouble with intricate computations.

Since ChatGPT hasn’t been trained on the precise tax-related math issue you give as a prompt, it will spit out the response it believes looks the best. Language models employ prediction models to determine replies. You’re in danger if that response is incorrect.

According to Brillhart, even if you ask ChatGPT the correct inquiry, you’re on your own if it gives you the incorrect response. When the IRS notifies you that your tax return is incorrect, “you can’t go to them and say, ‘Well, this is what ChatGPT told me.'” “Sorry, that is on you,” they will remark after glancing at you.

the 1 percent,” Brillhart said. “It absolutely makes sense why something like AI would be massively beneficial to the industry.”

“It’s going to be a valuable tool in the future,” said Brillhart. However, what matters most is the future. It’s not now, in my opinion.

Making accurate tax form computations is essential if you want to increase your return or decrease your debt.

You may learn more about 2017 tax season by using our cheat sheet, which includes information on this year’s tax dates and how to file your taxes.