Tax season is a headache for many people, and when a shortcut promises to make filing easier, it’s hard to resist. This year, one of the newest trends is using AI chatbots like ChatGPT to help prepare tax returns.
According to new McAfee research, 30% of people say they plan to use an AI tool, such as ChatGPT, to help with their taxes, with younger adults leading the trend.
At first glance, it makes sense. AI tools can explain confusing tax rules, summarize IRS forms, and answer questions instantly.
But there’s an important line that should never be crossed: Do not enter your personal tax information into AI chatbots.
That includes Social Security numbers, income records, home addresses, bank details, or anything else tied to your identity.
Here’s why:
Typing Your Tax Info Into a Chatbot Is Like Posting It Online
Think about it this way: when you type something into an AI chatbot, you’re sending that information over the internet to a system that processes and stores data.
In practical terms, entering sensitive information into an AI tool is similar to typing it directly into a search engine or submitting it to an online form.
Once it leaves your device, you lose direct control over where it travels and how it may be stored.
Even companies with strong security protections are transparent about this risk.
OpenAI’s privacy documentation explains that they use encryption and strict access controls to protect user data. However, they also note that no internet transmission or digital storage system can be guaranteed completely secure.
This is true across the internet, not just for AI tools.
Even Secure Systems Can Experience Breaches
Security incidents can happen anywhere online, including companies with robust security programs.
For example, in late 2025, OpenAI disclosed a security incident involving a third-party analytics provider called Mixpanel. The breach occurred within the vendor’s systems, not OpenAI’s infrastructure, but some limited user profile data associated with the platform was exposed.
According to OpenAI’s disclosure, the data involved information such as:
- Names associated with accounts
- Email addresses
- Approximate location data
- Browser and device information
Importantly, chat content, passwords, payment information, and government IDs were not exposed in that incident.
But the event highlights a broader cybersecurity reality:
Even when a company takes strong security precautions, third-party services, vendors, and other parts of the digital ecosystem can still introduce risk.
That’s why cybersecurity experts recommend limiting what personal information you share online whenever possible.
Why Tax Data Is Especially Dangerous to Share
Tax information is one of the most valuable targets for cybercriminals.
If scammers obtain the details commonly found in tax filings, they may be able to:
- Commit tax refund fraud
- Open financial accounts in your name
- Conduct identity theft
- Launch highly personalized phishing attacks
Tax returns typically include multiple pieces of highly sensitive data, including:
- Social Security numbers
- Home addresses
- Employer and income information
- Banking details for refunds
- Family member information
- Entering these details into any tool outside of a secure tax platform significantly increases risk.
Safer Ways to File Your Taxes
Instead of relying on AI chatbots for filing, stick with trusted tax preparation options designed to securely handle sensitive data:
- Official tax software platforms
- Licensed tax professionals
- IRS-approved free filing services
These systems are specifically built with compliance, encryption, and identity verification in mind.
AI tools can be incredibly useful for learning and research. But they are not secure tax filing platforms.
If you wouldn’t feel comfortable posting your Social Security number publicly online, you shouldn’t paste it into a chatbot either. When it comes to taxes, the safest rule is simple: Use AI for advice, not for your personal data.
Stay Updated
Follow us to stay updated on all things McAfee and on top of the latest consumer and mobile security threats.
