Deduction

What Deduction does

Deduction combines an AI tax assistant with a human tax preparation team. Its assistant, Taylor CPAI, handles document organization, analysis and communication, while tax professionals review significant decisions and returns. “CPAI” is the assistant’s branding: Taylor is AI, not a licensed human CPA. The service is intended for people who want a conversational tax workflow with professional involvement beyond a self-service form-filling experience.

Documents and year-round questions

The personal Vault holds tax documents and financial records. You can upload material or forward an email, and Deduction says Taylor can retrieve certain documents. That qualification matters: users should still confirm which records have arrived and supply missing information. The assistant helps organize the conversation around the information relevant to your situation, while the tax team remains involved in advice and filing.

The official FAQ identifies US personal taxes and simple solo-business situations as its scope. Examples include self-employment, equity compensation, rental income and multiple income sources. It describes federal and state filing support. Confirm the particular forms, entity and tax year with the service before moving an existing engagement, especially if a business has employees or a more complex structure.

How a filing workflow can proceed

A contractor with employment income could create an account, explain those income sources and upload the relevant wage statements, contractor forms and expense records. Ask Taylor which documents are still needed and identify any items that are estimates or incomplete. Keep the original records so that you can resolve questions from the preparer rather than relying solely on a conversation summary.

The documented filing sequence includes AI preparation, review by a licensed tax professional, your approval and submission. Before approving, reconcile the listed income sources with your records, check personal details and ask the team about unresolved assumptions. During the year, bring a significant change in circumstances to the team early enough to establish what information a professional needs. This is an organizational example, not advice about how a particular transaction should be taxed.

Review, security and service limits

The FAQ excludes complex businesses such as multi-employee S corporations and C corporations. Phone communication is marked coming soon, even though the homepage depicts calls; the established starting point is the web workflow, with email access subject to account limits. Do not treat a conversation with Taylor as confirmation that a human has already reviewed a high-impact decision.

Deduction’s security page says it uses encrypted storage and connections, restricts staff access and does not train public AI models on customer information. Review its terms and data-handling arrangements before uploading sensitive records. Providing complete, accurate documents remains important even when a professional reviews the final return.

Pricing and access

Deduction offers free use of Taylor and document uploads, with payment for filing or professional review of a high-impact decision. The FAQ lists personal service at $499 per year and simple-business service at $999. Confirm which service fits your return and what the agreement includes. The free assistant and the paid human-reviewed filing service should be evaluated as distinct access levels.