ChatGPT gives inaccurate tax information. (Note, I was just having this conversation to test ChatGPT. I was not trying to actually ask it for tax information for my own use. It occurred to me that it is tax time, and other people might be asking it for tax information, so I was curious what it would do in that case.)
Summary/ TL;DR: ChatGPT will confidently give you inaccurate information, and then fabricate website URLs and quotes to support the inaccurate information. If you challenge it repeatedly, it will change the information it is providing and apologize.
Using ChatGPT is much worse than just searching things online. It is very hard to figure out which things are correct or incorrect because it doesn’t provide sources or links for information. It does get some things right, but it just makes up other things.
I asked it:
What is the deadline for making IRA contributions for the 2022 tax year?
It answered:
The deadline for making contributions to a Traditional or Roth IRA for the 2022 tax year is April 15, 2023. It’s important to note that the deadline is not extended if April 15 falls on a weekend or holiday.
However, if you are self-employed and file an extension for your individual tax return, the deadline for making contributions to a Traditional or Roth IRA is also extended to October 15, 2023.
It’s also worth noting that you can make contributions to a Traditional or Roth IRA at any time during the tax year or up until the deadline for that year’s contributions. So, you don’t have to wait until the deadline to make your contribution. In fact, making regular contributions throughout the year can help you maximize the potential growth of your retirement savings.
I am pretty sure the middle paragraph is wrong. You don’t get an IRA contribution deadline extension, even when you get a tax return extension.
I then asked if it was sure about the extension:
Are you sure that you get an extension on your IRA deadline when you get a tax extension?
And it replied:
Yes, I apologize for the confusion in my previous response. While the deadline for making contributions to a Traditional or Roth IRA is generally April 15th of the following year, it’s true that if you file for a tax extension, your deadline for making IRA contributions is also extended to October 15th of that year.
So, if you file for a tax extension for the 2022 tax year, you would have until October 15, 2023, to make contributions to your Traditional or Roth IRA for the 2022 tax year.
I hope this clears up any confusion, and again, it’s always a good idea to consult with a tax professional or financial advisor to determine your specific contribution limits and deadlines based on your individual circumstances.
So now it seems to be saying that everyone gets the extension, not just self-employed people.
So then I tried to ask for a source to verify the information:
Where can I find information about the IRA extension from the IRS
And it linked me to a webpage that doesn’t work, and gave me a quote that it may have fabricated or taken out of context (I can’t tell which):
The information about the IRA extension can be found on the IRS website under the “Individual Retirement Arrangements (IRAs)” section. Here’s a direct link to the page:
https://www.irs.gov/retirement-plans/ira-faqs-contributions
On this page, you can find information about IRA contribution limits, deadlines, and other rules, including the extension deadline. Here’s the relevant information from the page:
“If you get an extension of time to file your income tax return, you can make your contribution anytime before the extension expires (usually October 15 for most taxpayers).”
Again, it’s always a good idea to consult with a tax professional or financial advisor to determine your specific contribution limits and deadlines based on your individual circumstances.
I pointed out that the website didn’t work, and then it gave me a link to a website that does work, but doesn’t have the information I want. And it gave instructions to find the information that didn’t actually work or match what is on the website:
That website doesn’t work
I apologize for the inconvenience. Here’s the correct link to the IRS page on IRA contributions:
https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras
On this page, you’ll find information about contribution limits, deadlines, and other rules for Traditional and Roth IRAs, as well as links to other helpful resources.
To find information about IRA contribution deadlines and extensions, you can click on the “Contributions” tab, then scroll down to the “When Can You Make Contributions?” section. Here, you’ll find information about the contribution deadlines for both Traditional and Roth IRAs, as well as information about how to request an extension if you need more time to make contributions.
Again, please note that the information provided on the IRS website is based on current tax laws, and it’s always a good idea to consult with a tax professional or financial advisor to determine your specific contribution limits and deadlines based on your individual circumstances.
I then tried again to get it to give me a way to verify the information that it was giving me:
I can’t find any information about the extension to the contribution deadline. Where can I verify that I will receive an extension to my contribution deadline if I get a tax extension?
And it “corrected” itself:
I apologize for the confusion. Upon further research, I’ve found that while taxpayers can receive an extension for filing their tax return, there is no extension for making contributions to a Traditional or Roth IRA.
The deadline for making contributions to a Traditional or Roth IRA for a particular tax year is the same as the tax return filing deadline for that year, which is generally April 15th of the following year. If you file for a tax extension, the deadline for making IRA contributions does not change.
I apologize for any confusion my earlier responses may have caused. It’s always a good idea to consult with a tax professional or financial advisor to determine your specific contribution limits and deadlines based on your individual circumstances.