Automate Tax Prep With AI - Finding Hidden Deductions

    Learn how AI can help you identify overlooked deductions and credits to maximize your client's tax savings.

    2025-03-20
    6 min read
    Automate Tax Prep With AI - Finding Hidden Deductions

    Tax season should be about maximizing refunds, not racing the clock. Yet many firms still leave easy money on the table—niche write-offs, pandemic relief credits, sector-specific allowances—simply because the research window is too tight.

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    Why hidden deductions get missed

    Traditional prep workflows juggle hundreds of forms and changing statutes. As a result, edge-case opportunities—like energy-efficiency credits for small farms or partial home-office deductions for hybrid contractors—slip by unnoticed.

    How AI finds the money

    1. Industry-specific pattern matching

    Algorithms sweep client data and surface sector-tagged write-offs (e.g., seed R&D or SaaS subscription depreciation).

    2. Real-time tax-code updates

    Juno Preparer ingests daily IRS bulletins so new credits—from EV chargers to pandemic relief—hit your checklist automatically.

    3. Historical variance checks

    Year-over-year comparisons flag anomalies (e.g., travel expenses doubled while revenue flat). Review and reclaim missed deductions fast.

    4. Client-profile triggers

    Life events (new child, home purchase) update tax-saving suggestions instantly.

    Putting AI into practice

    | Step | Action | Juno shortcut | | :--- | :--- | :--- | | 1 | Upload prior returns | Drag-and-drop PDF, OCR auto-tags all fields | | 2 | Run deduction scan | “Find credits” button surfaces gaps in 30s | | 3 | Generate explanation | Click Explain → shareable client memo |

    FAQ

    How accurate is the AI? Juno’s deduction model tests at 97% recall on 10,000 real returns.

    Will it replace my professional judgement? No. It speeds discovery; you decide what to claim.

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