TurboTax, owned by Intuit, is introducing a range of new features for its online tax-filing software as it prepares for the 2025 tax season. Renowned for its user-friendly interface and guidance, TurboTax has achieved recognition as CNET's top pick for online tax filing for two consecutive years, earning an Editors' Choice award in 2024.
Among the notable enhancements are improvements to its generative AI, known as Intuit Assist, which has been fine-tuned to better serve tax filers, although these updates might appear modest compared to last year's implementations. The enhancements aim to reduce the need for manual form filling, as TurboTax expands its AI capabilities to analyse an increased number of tax documents, leading to more automatic data retrieval and autofilling of tax returns.
Current users of TurboTax, Credit Karma, and QuickBooks are expected to gain the most from these updates. First-time users can also benefit from a new functionality that allows them to transfer prior year tax returns from various online tax preparation services, including those handled by tax experts, thereby automating their new tax filings effectively.
Intuit Assist, launched last year, featured several significant tools, including the analysis of uploaded tax documents to create personalised checklists for users, real-time identification of potential errors during the filing process, and matching users with tax experts tailored to their specific tax situations. The efficacy of these features remains to be fully assessed in the upcoming 2025 tax review; however, TurboTax emphasises the importance of verifying automatically generated information, acknowledging that AI technology can misinterpret data.
In addition to AI advancements, TurboTax has introduced a new tracker for its Live Full Service offering, which allows users to monitor the status of their tax returns after they are handed off to a tax expert. This tool is currently available exclusively through TurboTax's iOS mobile app and provides notifications regarding the status of filed taxes as well as inquiries from the assigned tax expert. This development addresses previous concerns expressed by users who preferred not to maintain constant communication with their tax preparers during the filing process.
Lisa Greene-Lewis, a CPA and TurboTax tax expert, commented on customers' feedback regarding the Full Service option, stating, "We've heard from our Full Service customers that some like the option to stay on the line with an expert as they file their taxes. However, many did not want to be tethered to the expert."
TurboTax anticipates that customers opting for the Full Service will be able to complete their tax filings in as little as two hours this year. Furthermore, users seeking expert assistance, whether through Full Service or TurboTax Live Assisted, now have the option to choose their tax expert from a curated list tailored to their unique tax situations. The source also notes that the cost for TurboTax Live Full Service currently starts at $89, making expertise more accessible to those in need of assistance during the tax filing process.
These improvements reflect TurboTax's commitment to integrating emerging technologies into business practices, demonstrating the increasing role of AI automation in the financial sector and highlighting the shifting landscape of tax preparation services. As TurboTax continues to evolve its offerings, the upcoming tax season is poised to showcase the full potential of these enhancements for both individual filers and tax professionals alike.
Source: Noah Wire Services