Using SmartExtract^TM (Beta) Powered by Drake Software, you can upload your client’s supported tax documents and import extracted tax data directly into a tax return. This helps streamline data entry by importing information from supported tax forms. This feature uses AI-assisted extraction to help reduce manual data entry from supported tax forms.

SmartExtract^TM (Beta) is available at no additional cost during the beta period for eligible TaxAct Pro users.

Watch the video SmartExtract Beta for a demonstration.

To begin using SmartExtract^TM (Beta), follow these steps:

1. Open an individual (1040) tax return in TaxAct Pro.
2. From the File menu, choose Import > SmartExtract^TM (Beta) or click SmartExtract^TM (Beta) on the toolbar.
   
3. Choose local or Client Portals* files for extraction:
   
   • Supported file types include PDF and image files, up to 5 MB each. There is a limit of 20 documents per return. Click View supported forms to see a list of forms that can be extracted.
   • To upload local files, click Choose files and select documents from your computer. Each file will be reviewed and extracted after you upload it.
   • If this taxpayer has a Client Portal, their Portals files will be listed and show the status Ready for extraction. Click Extract beside each form in the list or click Extract all (#) to add all documents from Client Portals. This does not remove the file from Client Portals.
4. After you extract the files, the Status will update to Ready to add.
   • TIP You can click the filter Ready to add if you want to only see those files that are ready to be added to the return.
     
   • If any files encounter an error during extraction, they will show a Status of Extraction failed. First, verify that the file contains a supported form. If it does, you can click Retry.
     
   • The status Form not available will show if the document sent for extraction is a form that is not yet supported for extraction.
     
5. To proceed with adding items to the return, select the check box beside the tax forms that you want to add, or click the checkbox in the column header to select all, then click Add to Return.
   
6. The status updates to Added to Return with a solid purple sparkle. Click on the Added to Return indicator in the Status column to open the data entry screen inside the client’s return.
   
   
7. Data entry is displayed on the left, and the original document is displayed on the right. Review them side-by-side to verify the imported data and make changes, if needed. Some additional selections may be required, such as choosing to whom the form belongs.
   
   • You can hide the form PDF at any time by clicking the X button above the document (on the right).
   • On the left, you will see a purple sparkle beside the form name. If it is a solid sparkle, that form has not yet been reviewed (2 below). Once you have reviewed the results, the purple sparkle will show as an outline only (1 below).
     
   • After the form has been reviewed, the source document is not open by default when you go back to the from entry. To see the PDF, click on the form in the left menu. Then, right-click on the form, and select view source document.
8. When you are done reviewing the form, you can click the X to close the screen. Then, navigate to the next imported form (solid purple sparkle indicator) in data entry.
   
   • Alternatively, click SmartExtract (Beta) in the toolbar to continue your review. You can toggle the Not yet reviewed filter to focus on forms that have not yet been reviewed.
     
9. When you have finished reviewing the forms, click Save on the toolbar.

*Client Portals is a subscription that is purchased separately from TaxAct Pro. See the FAQ article Professional Editions: Client Portals – Overview for details. The Client Portals section will only be displayed if you have a current subscription and files exist in that taxpayer’s Client Portal.

Print or e-File Notification

If you have not reviewed all the imported forms, you will see a message page when you attempt to print or e-file the return.

We recommend that you review the forms prior to proceeding. Click Review in Forms View and then review each form that shows with a solid purple sparkle beside the form name.

If you want to proceed without reviewing, click I understand, proceed.

Frequently Asked Questions