Should you use AI to file your taxes? Experts warn it can lead to costly mistakes.

Artificial intelligence tools like ChatGPT and Claude are becoming increasingly popular among Americans for preparing their tax returns. However, experts are warning that relying solely on AI for tax guidance can lead to outdated or inaccurate information, potentially resulting in costly mistakes.

According to Adobe polling, about 26% of people are using AI to file their 2025 tax returns, a significant increase from the previous year. Elon Musk even mentioned in a post on X that his Grok AI chatbot can assist with taxes, with one user claiming it boosted their tax refund by $1,400.

Tax experts caution that AI may not always reflect the most recent tax changes, such as those under the Republicans’ “one big beautiful bill act” (OBBBA). Caroline Bruckner, a tax professor at American University’s Kogod School of Business, emphasized that while AI is integrated into tax preparation software, it may not always provide accurate returns due to outdated information on government websites like IRS.gov.

Despite the potential pitfalls, there are some beneficial applications of AI in tax preparation. Users can ask AI questions about complex tax concepts or deductions, helping to simplify and explain intricate tax laws in plain language. However, it is crucial to critically evaluate the information provided by AI and verify its accuracy.

Lisa Greene-Lewis, a tax expert at Intuit, suggests using free AI programs for general education purposes but recommends using tax prep-specific software like TurboTax for filing tax returns. These programs are regularly updated with the latest tax laws and validated by tax professionals, reducing the risk of errors.

Mark Gallegos, a tax accountant, advises that while AI can outline tax law changes, it is not a substitute for working with experienced tax professionals or specialized tax prep tools. Danny Werfel, former IRS commissioner, warns against sharing sensitive personal information with AI models that have not been tested for accuracy.

Due to the absence of a free government-provided filing tool, people are turning to large language models (LLMs) like Claude. However, Julie Siegel, former deputy chief of staff at the Treasury Department, cautions that LLMs may struggle with interpreting outdated and current information accurately. Individuals remain responsible for the accuracy of their tax returns, even when using AI tools.

In conclusion, while AI can be a helpful tool for understanding complex tax concepts, it is essential to exercise caution and verify information from reliable sources. Collaborating with tax professionals or using reputable tax prep software can help ensure accurate and compliant tax filings.