Document intake across common tax file formats
Magnetic reads PDFs, Excel files, TIFFs, Outlook .msg files, scans, handwritten notes, phone photos, IRS forms, prior-year client files, and other tax documents using OCR and vision models.
Magnetic
ПодтвердитьMagnetic is an AI tax prep agent for 1040 returns. It reads source documents, enters data into tax software, and returns reviewer-ready workpapers.
Overview
Magnetic is an AI tax prep agent for 1040 preparation. It is built to read client source documents, reason over them as a set, and enter data into tax software rather than acting as a standalone document extractor. The site positions it around automating the most time-consuming parts of tax preparation while preserving the firm’s workflow and formatting conventions.
The product is designed for messy, document-heavy returns. Magnetic says it can work with PDFs, Excel sheets, scans, handwritten notes, prior-year client files, and other inputs, then return a completed file plus workpapers for review. Every return is reviewed by a U.S.-based credentialed EA or CPA before it goes back to the firm.
Core capabilities
Cross-document reasoning and calculation
The agent compares information across multiple documents, uses tools to calculate values, and looks up IRS instructions when needed to decide how entries should be handled.
Direct entry into tax software
Magnetic enters data directly into five of the leading tax engines through a computer-use protocol, preserving tax file history and firm formatting conventions.
Human review before delivery
After preparation, each return is reviewed by a U.S.-based Enrolled Agent or CPA, with reviewer notes attached to line items and unresolved items flagged for human judgment.
Reviewer-ready output package
The output includes workpapers, a summary of what was done, flags for unresolved items, and notes on documents that may be missing based on the prior-year return.
Firm controls and audit trail
The portal supports firm-level rules, local engagement overrides, an audit trail on agent actions, and a setup process that the site says takes about five minutes.
Use cases
Complex individual returns
Useful for firms that want help with complex 1040s where information appears across organizers, prior-year files, receipts, spreadsheets, and IRS forms.
Document reconciliation
Useful when a return includes duplicate or conflicting information across sources and the preparer needs the system to reconcile rather than simply extract fields.
Firm workflow handoff
Useful for practices that want the AI to populate tax software while keeping their existing file history, formatting conventions, and reviewer workflow intact.
Review-focused prep handoff
Useful for reviewers who want an updated file, attached workpapers, and notes about unresolved items instead of raw OCR output.
Sensitive data handling
Useful for firms that need a portal-based process with controlled access, U.S.-only processing, and credentialed review for sensitive taxpayer data.
Pros and Cons
Pros
- Handles a wide range of source files, including scans, spreadsheets, photos, and prior-year client files.
- Reasons across documents instead of only extracting fields from isolated forms.
- Writes results directly into tax software and preserves existing file history and conventions.
- Includes a credentialed human review step before delivery.
- Provides workpapers, flags, and reviewer notes that support a high-level final review.
Cons
- The site emphasizes 1040 preparation; it does not clearly describe broader support for other return types.
- Integration details are limited to a claim that it enters data into five leading tax engines, without naming them on the pages provided.
- Pricing is not published in the provided content.
FAQ
What does Magnetic do?
Magnetic is designed to prepare 1040 returns and related work by reading client documents, reasoning across them, entering data into tax software, and providing reviewer-ready workpapers.
What file types and workflows does it support?
The site says Magnetic can be used with PDFs, Excel files, TIFFs, Outlook .msg files, scans, and phone photos, and that it enters data directly into five of the leading tax engines.
Who reviews the work before it is delivered?
Each return is reviewed by a U.S.-based, credentialed Enrolled Agent or CPA before delivery back to the firm.
How does Magnetic handle client data?
The security page says data is encrypted in transit and at rest with AES-256, stored and processed only in the United States, and not used to train AI models.
How do firms get started?
The site describes a portal-based setup that can be started in about five minutes: firms create a portal, upload taxpayer documents and a pro forma client file, and receive the updated file plus workpapers.
Quick Facts
- Category
- AI tax prep
- Primary use
- 1040 preparation
- Source domain
- magnetictax.com
- Workflow
- Scan, reason, enter, review
- Delivery
- Updated file plus workpapers
- Security
- AES-256, U.S.-only processing, no model training on client data
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