Lübeck, Germany – As artificial intelligence (AI) increasingly permeates daily life, its application to the traditionally complex process of filing tax returns is gaining traction. Whereas AI tools offer the promise of simplified tax preparation, experts caution against relying solely on algorithms, particularly in cases involving individual financial circumstances.
The appeal of AI in tax preparation lies in its ability to quickly answer common questions regarding deductions like advertising costs or commuting allowances. Although, Rainer Kersten, Managing Director of the Schleswig-Holstein branch of the German Taxpayers’ Association, emphasizes the limitations of automation. “If nothing has changed compared to the previous year, the tax return is very simple, and AI functions very well in these cases,” he stated. This mirrors the internal processes of the German tax authorities themselves, which initially process returns automatically.
“But when something changes significantly or a specific case is particularly complex, AI is overwhelmed. I simply demand the human brain,” Kersten explained. Situations involving life changes – such as marriage, the birth of a child, children’s education, caregiving responsibilities, or multiple income sources – necessitate a detailed, individualized assessment that standardized AI solutions often struggle to provide.
Kersten strongly advocates for utilizing Elster, the official tax software of the German Federal Central Tax Office, over chatbots. “Elster has a plausibility check. If I make a typo or enter something contradictory, the program alerts me,” he said. The system is designed to align with the procedures of the tax authorities, ensuring a smoother verification process. While AI can offer general guidance, Kersten believes the expectation that it will independently handle one’s tax assessment is unrealistic.
The Haufe Group recently introduced CoPilot Tax, an AI-powered assistant integrated within their Steuer Office software, allowing users to pose tax-related questions and engage in dialogue with the system. However, even with such advancements, complex financial situations require human judgment.
For instances involving substantial expenses, such as high medical costs or complicated caregiving arrangements, Kersten advises providing a comprehensive description of the circumstances. Elster allows for free-text submissions, which are then reviewed by a tax official. “In complex individual cases, no algorithm can replace human judgment,” he asserted.
The Vereinigte Lohnsteuerhilfe (VLH) e. V., a German association supporting employees, pensioners, and retirees, offers year-round tax advice from qualified consultants who consider individual life situations and identify potential tax benefits. Unlike apps or algorithms, VLH provides ongoing support, including assistance with responding to inquiries from the tax office, contesting assessments, and pursuing appeals, even representing members in tax court.
VLH maintains advisory centers in locations such as Pansdorf and Fehmarn, offering localized support. The organization emphasizes the security and comprehensive assistance it provides, a level of support not currently available through automated systems.
