This AI Tax Assistant Actually Seems Quite Helpful
The promise of AI chatbots lies in their seemingly infinite wisdom, allowing you to ask them any question you can think of, as well as simpler things like writing a thank you note , composing a cover letter , or even a verbal conversation . However, there are limitations. I previously reached out to ChatGPT to check out its expertise in personal finance, but was told: “As an AI language model, I cannot give financial advice or make specific investment recommendations… you may want to consult a financial advisor who can provide personalized advice based on your individual financial situation and goals.” In other words: Don’t turn to chatbots to make financial decisions.
However, now H&R Block has released a new AI chatbot specifically for your tax questions—an area where, in the past, I would argue that AI shouldn’t be trusted. Using conversational AI, this virtual tax expert can answer many of your common tax questions and add to your understanding of the tax process, and it seems surprisingly helpful.
What You Need to Know About H&R Block’s Tax Assistant AI
Once again, I am hesitant to use AI when it comes to any kind of financial guidance. After all, as ChatGPT itself explains to users: “The system can sometimes generate incorrect or misleading information and create offensive or biased content. It is not intended to give advice.”
Here’s what makes this AI Tax Assist different: H&R Block promises that its AI model doesn’t randomly pull information from the internet. Instead, the company says it trained the chatbot only on H&R Block’s tax law library and refined it with the help of numerous accountants, lawyers and other tax professionals. Additionally, the chatbot will refer people to a tax expert for more personalized advice when needed.
How to use the H&R Block AI chatbot
H&R Block said that while AI Tax Assist is not available in the free version of its app, it will not increase prices on its subscription tiers that will have access to the conversational AI platform. Paid plans start at $35.
The chatbot is designed to have a natural conversation, allowing you to phrase your questions in a conversational manner instead of using specific keywords. You can use this tool to explain tax forms you may have to file, eligibility for certain credits and deductions, expected payment requirements, and more. He can also provide helpful definitions of tax terminology you may encounter.
For example, you can use a chatbot to ask questions specific to your situation, such as: “What can I deduct as a business expense as an Uber driver?” You’ll then be given a list of allowed deductions, rather than having to search through the IRS’s painfully dense resources.
Taxes are always a headache between keeping track of documents, making sure you don’t miss any deductions, and getting your questions answered accurately. By complementing self-service options like H&R Block’s chatbot, you can do more on your own, saving time and money on taxes. One final reminder: You’re probably eligible to file your taxes for free .