Deduction & Credit Agent
Works through what you're eligible to claim, tests each threshold and phase-out against your actual numbers, and flags the ones you're close to missing.
AlphaTax is a tax and accounting platform built on specialized AI agents, RAG and our own proprietary language models. Each one researches the rule, runs the math deterministically, and cites the primary source — with the tax year, jurisdiction and assumptions attached to every answer.
AlphaTax provides tax information and analysis. It is not a substitute for advice from a licensed CPA, EA or attorney.
| Net profit, Schedule C line 31 | 120,000.00 |
| × 92.35% — net earnings from SE | 110,820.00 |
| × 15.3% — Social Security 12.4% + Medicare 2.9% | 16,955.46 |
| Deductible half, Schedule 1 | 8,477.73 |
No W-2 wages this year, so none of the Social Security wage base is already used. Net earnings sit below the wage-base limit for the selected tax year — AlphaTax applies that year’s published limit automatically. Church employee income, optional methods and state tax are not in scope for this answer.
Example interaction. Figures are illustrative; AlphaTax computes against the rules published for your tax year and jurisdiction.
A tax answer without its year, its jurisdiction and its source isn’t an answer — it’s a guess you can’t check. AlphaTax structures every response so you can verify it in under a minute, or hand it to your accountant as-is.
Stated first, in a sentence, with the figure that actually matters. No preamble about how complicated taxes are.
Every line of arithmetic shown and computed by a rules engine — not produced by a language model estimating.
Why the answer is what it is, in plain language, tied to the statute, regulation or publication that governs it.
Primary authority is labelled as primary. Secondary commentary and AlphaTax explainers are labelled as what they are.
What the answer took for granted about you — filing status, entity, state, other income — surfaced where you can correct it.
When a situation turns on unsettled interpretation, a notice, an audit or a major transaction, AlphaTax says so and tells you what to bring a professional.
Each AlphaTax agent has its own knowledge scope, its own tools, its own calculation set and its own rules for when to defer to a human. You pick the job; AlphaTax routes to the agent that owns it.
Works through what you're eligible to claim, tests each threshold and phase-out against your actual numbers, and flags the ones you're close to missing.
Computes SE tax and quarterly estimates from Schedule C figures, tracks safe-harbour thresholds, and models what an entity change would do to the bill.
Reads the notice, identifies what the agency is actually asserting, explains the deadline and the response options, and drafts the reply for a professional to sign off.
Answers a research question with a cited memo: the controlling authority first, secondary interpretation second, and an explicit note where the authorities conflict.
Matches ledger to statement, isolates the items that don't tie, and proposes the correcting entries with the evidence for each one attached.
Reads the last twelve months, tells you where margin actually went, and runs scenarios — a hire, a price change, a big purchase — through both the cash and the tax consequence.
Answers are retrieved from a knowledge base where every document is ranked by authority and stamped with the period it governs. A blog post never outranks a regulation, and last year’s rule never quietly answers this year’s question.
Every knowledge object carries this metadata. It’s what lets an answer say “for tax year 2026, in California, for an S corporation” and mean it.
Statutes, regulations, IRS and Treasury publications, official forms and instructions, state revenue authorities, court decisions.
Professional bodies, recognised accounting and tax publications, accounting standards commentary. Cited as interpretation, never as rule.
Our own guides and worked examples, each reviewed by a licensed preparer and dated. Useful for understanding; never the authority for a position.
Returns, statements, ledgers and notices you upload. Used only for your account, and only where you point the agent at them.
Tables, thresholds, phase-outs, brackets and eligibility tests run through a deterministic rules engine keyed to the tax year. The AI decides which rule applies and explains it. The engine produces the number — the same number, every time you ask.
That separation is also why every calculation can be shown line by line. There’s nothing to reconstruct after the fact.
| Projected net business income | 120,000.00 |
| Less deductible half of SE tax | (8,477.73) |
| Less standard deduction, single filer | applied for TY |
| Taxable income | computed |
| Income tax, bracket schedule applied | computed |
| Self-employment tax | 16,955.46 |
| Per-quarter payment, safe harbour | ÷ 4 |
In plain language, or by uploading the document you're stuck on. AlphaTax routes it to the agent that owns that domain.
The agent pulls the controlling authority for your jurisdiction and tax year, and tells you which documents it used.
Figures go through the rules engine. You see every line, and you can change an input and watch the answer move.
Save it, export it, turn it into a recurring workflow, or send the whole package — answer, math and citations — to your accountant.
The same knowledge engine, configured around what each one actually does all day.
Employees, freelancers, investors and landlords who want a real answer about their own situation instead of a forum thread from 2019.
Explore for individuals →LLCs, S corporations and sole proprietors running quarterly estimates, entity decisions and deduction strategy without a full-time finance team.
Explore for business →Cited research in minutes, notice triage, client-ready memos, and an audit trail for every conclusion your name goes on.
Explore for professionals →Scenario planning where the tax consequence and the cash consequence appear in the same view, before the decision is made.
Explore for CFOs →Connect the systems your numbers already live in and AlphaTax stops asking you to type them. Every connection is scoped, revocable and logged — you see exactly what an agent read and when.
Until a connection is live, AlphaTax works from documents and exports you upload — which is enough for most tax and close workflows.
Monthly, cancel anytime. Annual billing takes two months off.
For getting a straight answer to one question.
For freelancers, investors and landlords filing their own return.
For LLCs, S corps and owner-operators with books to keep.
For CPAs, EAs and firms carrying client responsibility.
Enterprise: SSO, admin controls, custom integrations, API access and a dedicated contact. Contact sales.
Twenty questions a month, free, no card. If the first answer doesn’t show you its sources and its math, you never have to look at the second one.