Tax professionals are continually looking for ways to work more efficiently without giving up control of the return preparation process. That is why TaxAct Professional is expanding its capabilities with technology designed to reduce repetitive work and support a smoother tax workflow.
One of the latest additions is SmartExtract™ (Beta), Powered by Drake Software. This AI-powered tax document extraction tool helps turn supported client documents into return-ready data, giving tax professionals a faster way to move from document collection to return preparation.
Spend Less Time Entering Tax Documents
Manually entering information from client tax forms can take valuable time, especially during the busiest weeks of filing season. SmartExtract is designed to simplify this step by extracting key information from supported PDF tax documents and organizing it for review within TaxAct Professional.
The process follows four steps:
- Upload a supported tax document.
- Allow SmartExtract to extract the information.
- Review and verify the extracted data.
- Continue preparing the return in TaxAct Professional.
Because SmartExtract is integrated into the TaxAct Professional workflow, preparers should review the information and continue working on the return without moving between disconnected tools.
Support for Common Client Tax Forms
SmartExtract currently supports several frequently used tax documents, including:
- Form W-2
- Form 1098
- Supported Forms 1099, including certain 1099-INT, 1099-MISC, 1099-R, and composite 1099 statements
Support for additional documents may expand as the beta progresses. Document quality—including resolution, formatting, contrast, and legibility—can affect extraction results, so clear, machine-readable PDFs will provide the best experience.
Keep the Tax Professional in Control
SmartExtract assists with document ingestion and data entry, but it does not prepare, review, approve, or file a tax return. Tax professionals remain responsible for reviewing the extracted information, making corrections when necessary, and completing the return.
Before extracted information is used, preparers should review and verify the data. This review step combines the time-saving potential of AI-powered automation with the professional oversight required during return preparation.
More Time for Higher-Value Work
Reducing repetitive data entry can give tax professionals more time to focus on work that requires their experience and judgment. That could include reviewing returns, identifying missing information, communicating with clients, or advising taxpayers about their individual situations.
For firms managing a high volume of client documents, even small improvements to the data-entry process can make a meaningful difference throughout filing season.
SmartExtract reflects a broader focus on building practical technology for tax professionals—technology that supports established workflows while helping firms prepare for what comes next.
A More Connected TaxAct Professional Experience
SmartExtract joins other TaxAct Professional capabilities that help firms manage different parts of the tax preparation process. TaxAct Professional offers flexible software options along with tools for importing client data, collecting electronic signatures, producing customized reports, and securely collaborating with clients.
Together, these capabilities can help tax professionals spend less time managing separate tasks and more time moving returns forward.
Try SmartExtract and Share Your Feedback
Eligible TaxAct Professional users can try SmartExtract at no additional cost during the beta period. As a beta participant, your experience and feedback can help guide future improvements to AI-powered tax document processing.
Learn more and try SmartExtract™ in TaxAct Professional.
Disclaimers: Drake SmartExtract (beta) is currently in beta testing, meaning that the product may contain defects and you may experience interruptions and changes to the service and necessary upgrades. Drake may discontinue Drake SmartExtract (beta) at any time, but it is currently available as a trial to Drake Tax Online users preparing Tax Year 2025 returns. Drake SmartExtract (beta) is optimized for standard, machine-readable tax forms, so resolution, formatting, and legibility will affect extraction accuracy. Select tax documents supported. Preparer should review and verify extracted data before use.
This article is for informational purposes only and not legal or financial advice.