Will AI replace tax preparers?
Updated
Tax preparers score 69 of 100 for AI exposure. The largest share of their task time, 68%, is work AI speeds up while they stay in charge. AI can take over the other 32% outright.
- 32% AI can do it
- 68% AI helps
High exposure
Higher than 99% of the 923 occupations we scored.
Task by task
We graded 12 tasks, listed here from most to least exposed. AI can do 4 of them today, speeds up 8 and leaves 0 to people.
| Task | AI exposure |
|---|---|
| Schedule appointments with clients. Online booking and AI assistants handle scheduling with minimal oversight. | 85% AI can do it |
| Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures. AI and software check arithmetic and flag inconsistent entries. | 80% AI can do it |
| Compute taxes owed or overpaid, using adding machines or personal computers, and complete entries on forms, following tax form instructions and tax tables. Tax software computes liabilities and fills forms from entered data. | 75% AI can do it |
| Calculate form preparation fees according to return complexity and processing time required. Software can price returns by complexity; staff approve final fees. | 70% AI can do it |
| Prepare or assist in preparing simple to complex tax returns for individuals or small businesses. AI drafts return data from documents; preparer reviews and signs. | 62% AI helps |
| Review financial records, such as income statements and documentation of expenditures to determine forms needed to prepare tax returns. AI extracts figures from statements; preparer decides required forms. | 60% AI helps |
| Explain federal and state tax laws to individuals and companies. AI explains common tax rules well; state nuances need checking. | 60% AI helps |
| Use all appropriate adjustments, deductions, and credits to keep clients' taxes to a minimum. AI can spot eligible deductions and credits; preparer confirms eligibility. | 55% AI helps |
| Furnish taxpayers with sufficient information and advice to ensure correct tax form completion. AI drafts guidance; preparer must verify advice for each taxpayer. | 55% AI helps |
| Answer questions and provide future tax planning to clients. AI answers routine questions and suggests planning ideas for review. | 50% AI helps |
| Consult tax law handbooks or bulletins to determine procedures for preparation of atypical returns. AI searches rule sources quickly; atypical cases need expert judgment. | 50% AI helps |
| Interview clients to obtain additional information on taxable income and deductible expenses and allowances. Chatbots collect basic intake data; nuanced client interviews stay human. | 35% AI helps |
How tax preparers compare
All occupations (923)
Business and financial operations (48)
Pay and outlook in the US
- Median pay
- $54,920 a year, May 2025
- People employed
- 76,480 in the US, May 2025
- Projected change in jobs
- +4.7% from 2024 to 2034
Skills to build
- Conduct client intake interviews on taxable income and deductions
- Review AI-drafted returns in Intuit TurboTax before signing
- Build tax planning models in Microsoft Excel
- Research atypical returns in IRS publications and rulings
- Reconcile client books in Intuit QuickBooks
- Hold the IRS Enrolled Agent credential
Safer roles nearby
5 related occupations with lower scores.
Questions about tax preparers and AI
Will tax preparers be replaced by AI?
Largely. About 6 in 10 working hours go to tasks AI can already do, mostly computing taxes owed and checking totals on forms. The preparer still interviews clients, decides which forms apply, and signs each return.
Which tax preparer tasks is AI taking over?
Scheduling appointments (exposure 85), checking totals on forms prepared by others (exposure 80), and computing taxes owed (exposure 75). Online booking runs calendars with minimal oversight, software catches arithmetic and data entry errors, and tax software fills forms from entered data.
Which tax preparer tasks stay human?
Interviewing clients stays the hardest task to hand off. Chatbots collect basic intake data, but nuanced interviews on taxable income and deductible expenses stay with the preparer. Atypical returns also need expert judgment when consulting tax law handbooks and bulletins.
How can tax preparers stay valuable?
Run the client interview yourself, then review every AI-drafted return in Intuit TurboTax before signing. Build tax planning models in Microsoft Excel, document why each deduction or credit applies, and keep the Enrolled Agent credential current.
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Next steps for tax preparers
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