How AI Can Save You Money on Taxes in 2026
Smarter deductions, fewer errors, and faster planning—plus free AI consultations to get you started.
Where AI helps most
- Deduction discovery: Cross-checks your spending for missed write-offs (home office, mileage, depreciation, education).Deduction discovery:
- Error prevention: Flags mismatches (W-2/1099 totals, basis tracking, wash sales) before filing.Error prevention:
- Scenario planning: Models Roth conversions, capital gain timing, and entity choices with real-time tax impact.Scenario planning:
- Record hygiene: Auto-summarizes receipts and bank feeds into clean categories for Schedule C/E/F.Record hygiene:
- State/local nuance: Applies location rules (SALT caps, credits) consistently across multiple states.State/local nuance:
How AI can lower your bill
- Optimize capital gains: Suggests loss harvesting windows and pairing gains with carryforwards.Optimize capital gains:
- S-corp vs. sole prop: Runs compensation splits to balance reasonable salary and distributions.S-corp vs. sole prop:
- Retirement stacking: Finds the best mix of 401(k), SEP/Solo 401(k), HSA, and backdoor Roth timing.Retirement stacking:
- Credit eligibility: Checks AGI impacts to unlock education, energy, child, and EV credits.Credit eligibility:
- Quarterly estimates: Reduces penalties by forecasting safe-harbor payments and adjusting midyear.Quarterly estimates:
Security and privacy
Always deidentify sensitive documents before using AI: remove SSNs, account numbers, full addresses, and exact birthdates. Use secure, compliant tools for final filing.
Prompts you can use
1) Clean and categorize expenses
“Categorize these transactions for Schedule C. Flag potential business vs. personal splits. Highlight any likely deductions I’m missing.”
2) Plan capital gains and losses
“Given these unrealized gains/losses and my capital loss carryforward of $X, recommend which lots to sell in 2026 to minimize tax and avoid wash sales.”
3) Optimize retirement and health savings
“Model a $Y Roth conversion, max 401(k), and HSA contribution. Show 2026 tax impact, marginal rate, and how much carryforward loss remains.”
4) Multi-state considerations
“I have W-2 income in State A and rental in State B. Outline credits, addbacks, and apportionment issues to watch for 2026.”
When to bring in a pro
- Business sales, equity comp, complex rentals, or multi-state filings.
- AMT/NIIT interactions, passive activity loss limits, and estate/gift planning.
- Audit notices or correspondence—AI can draft responses, but a pro should review.
Free AI Consultations Available
We’ll review your 2026 tax situation, set up AI-driven workflows, and sanity-check the results.
Call (760) 249-7680
