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Can AI Prepare a 1040? What 5 Tax Prep Tools Actually Do

By the AI Tools for Accounting team · · Updated

The short answer

Partly. Several tools now take a client's source documents, extract the data and build a draft 1040 inside the firm's tax software, but every vendor covered here keeps a tax professional in the loop to review and approve the return. Wolters Kluwer says the preparer reviews and approves every TaxWise return before filing [1], and Filed shows the preparer a data entry plan to approve before it writes anything to the return [5]. The practical question for accountants, CPA firms and tax professionals is not whether AI files the return on its own, but how much of the data entry and first-pass review it takes off the preparer's desk.

What changed this season

On October 5, 2026, Wolters Kluwer launched agentic tax preparation in TaxWise. Its Expert AI ingests and classifies taxpayer documents, extracts the data, populates return fields and creates a review-ready draft return [1]. That puts end-to-end draft preparation inside a mainstream tax preparation product, not only in add-on tools that feed other tax software.

What each tool does

  • TaxWise (Wolters Kluwer) is tax preparation software for tax offices. TaxWise with Expert AI organizes client documents, maps tax-relevant data into the return, flags potential issues and produces a draft for the preparer to check and approve [1][2].
  • Black Ore sells Tax Autopilot, which it describes as end-to-end autonomous tax preparation for CPA firms [3]. Its product menu lists 1040 automation and K-1 and K-3 automation, with 1041 and 1065 automation marked "Coming Soon" [3]. Its review features include AI anomaly and error detection and a copilot for reviewing completed returns [3]. Black Ore's demo form lists ATX, CCH Axcess Tax, CCH ProSystem fx, Drake Tax, GoSystem Tax RS, Lacerte, ProConnect, ProSeries and UltraTax CS as tax software options [3].
  • Filed works inside the firm's tax software and covers 1040, 1065, 1120, 1120-S, 1041 and 990 returns [7]. Filed says it fills every form field in CCH Axcess, Lacerte, Drake and ProConnect, with data entry taking under 3 minutes per return, and that every value links back to the source document box it came from [5]. It also offers an AI reviewer and a tax planner [7].
  • SurePrep, part of Thomson Reuters, is a set of 1040 workflow products: 1040SCAN for scan-and-populate data entry, SPbinder for digital workpapers and review, TaxCaddy as a client portal, and an outsourced preparation service [8]. Thomson Reuters says 1040SCAN's AI automatically verifies data for 65% of standard documents [8]. SurePrep lists integrations with CCH Axcess Tax, GoSystem Tax RS, Lacerte and UltraTax CS, and says only 1040SCAN ORGANIZE works with any tax software [8].
  • GruntWorx organizes and bookmarks source documents, extracts data from W-2s, 1099s, K-1s and brokerage statements, and posts it to supported tax software [9][10]. It pairs AI document processing with human review: its CORE option relies on the firm's own validation, while PREMIUM adds U.S.-based verification by GruntWorx [10].

Where the preparer stays in charge

  • Approval before filing: TaxWise says the preparer reviews and approves every return before filing [1].
  • Approval before data entry: Filed shows every value, the field it goes to and the source document, and the preparer can correct a value or remove a form before Filed enters anything [5].
  • Human verification as a service: GruntWorx PREMIUM adds verification by GruntWorx staff on top of its automated extraction [10][11].
  • Review tools: Black Ore lists anomaly detection, a review copilot and evidence-linked review steps [3], and SurePrep's SPbinder supports tick marks, annotations and hyperlinked cross-references for reviewers [8].

Published pricing

  • TaxWise: TaxWise 100 with Expert AI is $1,849, TaxWise 400 is $3,899 and TaxWise UltraPro is $4,249, each for unlimited users in a single office [2]. See our TaxWise listing for the per-return options and fees.
  • Black Ore: per-return pricing for small and mid-sized firms starts at $60 per return, and the Enterprise plan shows "Request Pricing" (checked November 2, 2026) [4].
  • Filed: custom pricing based on total taxpayers, with unlimited seats for preparers and reviewers [6].
  • SurePrep: no list price on the Thomson Reuters SurePrep page, which directs buyers to contact sales [8].
  • GruntWorx: three approaches: a flat fee per return with self-verification, per-page, per-form or per-trade charges with GruntWorx verification on selected features, and a flat fee per return with verification included [11]. Exact rates are behind "Check Pricing" and "Request a Quote" [11].

Vendor claims to check in a demo

Vendors publish strong numbers, and none of them are independent tests. Black Ore claims over 99% accuracy in data extraction and up to 98% less tax preparation time [3]. Filed claims 99.9% data extraction accuracy and 100% field coverage in four tax programs [5]. Ask each vendor to run a few of your own prior-year returns, including K-1 heavy and brokerage-heavy clients, and compare the draft against what your team filed.

How to choose

  • Start with your tax software. The integration lists differ, so confirm the tool writes into the program your firm actually uses [3][5][8].
  • Decide who verifies the data. If staff capacity is the bottleneck, compare GruntWorx PREMIUM's included verification with tools that leave review to your team [10][11].
  • Check return types. Filed lists business, trust and nonprofit returns alongside the 1040 [7], while Black Ore marks 1041 and 1065 automation as coming soon [3].
  • Ask about security. Filed lists SOC 2 Type II, ISO 27001 and U.S. data residency [5], and Black Ore describes U.S.-based, SOC 2-compliant infrastructure [3].

For AI tax research tools rather than preparation tools, see Blue J vs CoCounsel Tax. All ten tools are in our best AI tools for tax professionals guide and the Income Tax category.

FAQ

Can AI file a 1040 without a CPA or preparer? None of the five tools here describe filing without a professional. TaxWise says the preparer approves every return before filing [1], and Filed requires approval of its data entry plan [5].

Which AI tax prep tools work with Lacerte? Black Ore lists Lacerte as a tax software option [3], Filed says it fills every field in Lacerte [5], and SurePrep lists a Lacerte integration [8].

Do any of these tools publish prices? Yes, two do. TaxWise publishes package prices [2], and Black Ore starts at $60 per return for small and mid-sized firms, with Enterprise pricing on request [4]. Filed and SurePrep quote on request [6][8], and GruntWorx publishes its pricing approaches with rates behind a quote or pricing check [11].

Sources

  1. Wolters Kluwer, "Wolters Kluwer launches agentic tax preparation in TaxWise" (October 5, 2026): https://www.wolterskluwer.com/en/news/wolters-kluwer-launches-agentic-tax-preparation-in-taxwise
  2. Wolters Kluwer TaxWise product page: https://www.wolterskluwer.com/en/solutions/taxwise
  3. Black Ore homepage: https://blackore.ai/
  4. Black Ore pricing: https://blackore.ai/pricing
  5. Filed tax preparation: https://www.filed.com/taxprep
  6. Filed pricing: https://www.filed.com/pricing
  7. Filed homepage: https://www.filed.com/
  8. Thomson Reuters SurePrep: https://tax.thomsonreuters.com/en/sureprep
  9. GruntWorx homepage: https://gruntworx.com/
  10. GruntWorx features: https://gruntworx.com/features/
  11. GruntWorx pricing: https://gruntworx.com/pricing/

Last checked: 2026-11-02

Tools in this article

  • TaxWise (Wolters Kluwer)

    Tax preparation software whose Expert AI turns client documents into review-ready draft returns.

    Income Tax · TaxWise 100 with Expert AI $1,849, TaxWise 400 $3,899 and TaxWise UltraPro $4,249, each for unlimited users (single office); TaxWise Limited $429 annual license plus $39 per 1040 and $61 per business return; $6 automation fee per 1040 and a one-time $83 processing fee

  • Black Ore

    AI tax preparation platform (Tax Autopilot) that prepares 1040s with complex K-1s in a firm's tax software, with per-return pricing for small firms.

    Income Tax · From $60 per return for small and mid-sized firms (per-return pricing); Enterprise firms: request pricing

  • Filed

    AI agents that automate tax preparation workflows for accounting firms.

    Income Tax · Custom monthly pricing scoped to the client book

  • SurePrep

    1040 tax automation with document OCR and workpaper prep (Thomson Reuters).

    Income Tax · Pricing not published; Thomson Reuters takes sales inquiries (800-968-8900)

  • GruntWorx

    Tax document organization and data-entry automation for tax preparers.

    Income Tax · GruntWorx CORE (self-verified): $10 for a single return, or bundles of $175 for 25 returns ($7.00 each), $325 for 50 ($6.50), $600 for 100 ($6.00) and $1,375 for 250 ($5.50); custom for 500+ returns; CORE returns expire 18 months after purchase. PREMIUM variable pricing: 50 cents per page for ORGANIZE and POPULATE, $1.25 per form populated, 30 cents per trade (Trade DETAILS) and $6.00 per brokerage (Trade SUMMARY); PREMIUM return-based plans by quote. Free trial offered