AI Found $3,500 in Missed Deductions: A Case Study

Sebastian, Founder
2025-01-10
8 min read
case-study ai-analysis tax-optimization

Names and details changed for privacy, but the savings are real.

The Client

Sarah, a freelance graphic designer who had already filed her taxes using TurboTax. She thought she was done until a friend recommended our AI analysis.

"I figured TurboTax caught everything," Sarah said. "I was wrong."

What Our AI Found

1. Home Office Deduction ($1,200)

TurboTax asked if she had a home office but didn't explain the calculation properly. Our AI:

  • Calculated the exact square footage allocation
  • Included utilities, internet, and maintenance
  • Applied the simplified method where beneficial

2. Business Equipment ($980)

Sarah bought a new laptop and monitor but only deducted the laptop. Our AI caught:

  • Monitor and accessories
  • Software subscriptions
  • Professional development courses

3. Vehicle Expenses ($850)

She tracked some business miles but not all. Our AI identified:

  • Client meetings she forgot to log
  • Supply runs to office stores
  • Networking events

4. Health Insurance Deduction ($470)

As a self-employed individual, her health insurance premiums were fully deductible. TurboTax missed this completely.

The Results

Total additional deductions found: $3,500

Additional tax savings: $1,050

Analysis cost: $20

Net benefit: $1,030

Why AI Finds More

Traditional tax software relies on you knowing what to look for. Our AI:

  • Analyzes every line of your return
  • Cross-references against 1,000+ potential deductions
  • Identifies patterns humans miss
  • Suggests optimizations based on your specific situation

Common Deductions People Miss

  1. Home office expenses - Even partial use counts
  2. Professional development - Courses, books, conferences
  3. Equipment depreciation - Computers, phones, furniture
  4. Travel expenses - Business meals, hotels, transport
  5. Professional services - Legal, accounting, consulting fees

Your Turn

How much are you leaving on the table? Even if you've already filed, you can amend returns up to 3 years back.

Ready to see what you're missing? Upload your return for AI analysis

"I've been doing taxes for 20 years and TaxCheckMe's AI found deductions I missed. It's like having a tax expert review every line." - Janet, CPA

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About the Author
Sebastian

Founder, TaxCheckMe AI

Building privacy-first AI solutions for tax optimization. Passionate about data privacy and helping people keep more of their money.