I’m posting this (1) because I think it’s interesting, and (2) in response to all the news stories about the disturbing, unsettling, rude, secret, scary, and confusing conversations people have (gone out of their way to have) with Bing Chat. It’s, literally, all the media is reporting on this new tool.
But if you interact with it like a normal person, for normal things, it’s pretty helpful. And what could be more normal than taxes?
To illustrate the point, and to make working on taxes less drudgery-y, I thought I’d log my interactions with Bing Chat to provide a more typical view into the user experience.
Chatlog
Without further ado, here are the questions I threw at it and the answers I got back:
Q: Who typically itemizes deductions rather than taking the standard deduction?
Hello, this is Bing. I can help you with that.😊
The difference between standard deduction and itemized deduction comes down to simple math¹. The standard deduction lowers your income by one fixed amount, while itemized deductions are made up of a list of eligible expenses¹.
Typically, taxpayers who have large deductible expenses, such as mortgage interest, state and local taxes, medical expenses, charitable donations, etc., may benefit from itemizing deductions rather than taking the standard deduction²⁴.
Are you looking for more information on how to choose between standard deduction and itemized deduction?
Q: What is form 1095A?
Form 1095-A is a statement that shows details about your health coverage from the marketplace¹². You need it to claim your premium tax credit on your tax return¹⁴. Do you have any questions about Form 1095-A?
Q: What are the requirements for claiming someone as a dependent who is 19 and moved home in July of the prior year?
To claim someone as a dependent, they must be either your qualifying child or qualifying relative¹⁷. A qualifying child must be under age 19 or a full-time student under age 24³¹¹. A qualifying relative can be any age but must meet income requirements. Did your 19-year-old move home for school or other reasons?
Sources: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12
Q: Are there any deductions that an employee working from home can claim?
I'm sorry to say that employees who work from home can no longer claim tax deductions for their unreimbursed employee expenses or home office costs on their federal tax return²³. This is because of the 2017 tax reform law that suspended this deduction until 2025². However, some states may have their own laws that allow employees to deduct these expenses on their state tax returns or require employers to reimburse them⁴. What state do you live in?
Q: Can you deduct goodwill donations from your taxes?
Yes, you can deduct goodwill donations from your taxes if you itemize them³. A goodwill donation is a charitable contribution to an organization with 501 (c) (3) status¹. You can deduct the fair market value of clothing, household goods, used furniture, shoes, books and so forth⁴.
Q: Can you deduct health insurance premiums, co-pays, and prescriptions if you’re self-employed?
Conclusion
As you can see, until I hit the daily chat limit (which, yes, is frustrating), it was simply a very helpful and normal chatbot that offered good answers, cited lots of sources, and even offered follow up questions. This thing rocks.