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How We Built Financial Application TaxTrim with ChatGPT for Easy Tax Savings

Olga Gubanova


March 10, 2024

In the labyrinth of tax filing, individuals often find themselves ensnared by complexities ranging from selecting the appropriate form to accurately calculating deductions. This confusion is compounded by the annual obligation to navigate through multiple income sources, decipher tax exemptions, and ensure timely submission of documentsthe. For instance, the challenge of integrating incomes from different employers or the ordeal of remembering login credentials from one year to the next underscores the daunting nature of this task.

Recognizing these hurdles, TaxTrim* company sought to streamline the tax filing process, aiming to alleviate the common pain points encountered by taxpayers. This pursuit led them to collaborate with us at Ptolemay Company, known for our innovative solutions in software development.

We created TaxTrim*, a new financial application. This app uses ChatGPT-4, a smart AI, to make taxes easy.

Here's how it works:

  1. ChatGPT-4 talks to you. It asks simple questions and uses your answers to fill out your tax forms.
  2. It picks the right form for you. No more guessing which tax form to use.
  3. It finds deductions. This means you might pay less in taxes because the AI finds savings you might miss.
  4. It helps with tricky parts. Like if you changed jobs and have more than one income to report.

TaxTrim makes doing your taxes less scary. It's like having a tax expert who chats with you, making sure you do everything right and save money.

Here's how we made it:

Integrating ChatGPT in Financial Applications: A Comprehensive Guide to Developing TaxTrim

The primary aim was to harness AI, specifically ChatGPT-4, to demystify the tax filing process, thereby making it more accessible, efficient, and user-friendly for taxpayers. By integrating ChatGPT in finance apps, TaxTrim intended to provide personalized tax advice, automate the selection of suitable tax forms, and identify potential deductions and credits, tailored to the user's financial situation.

The project adopted a multi-faceted approach, beginning with a comprehensive needs analysis to identify the specific challenges taxpayers face. Following this, a design thinking methodology was employed to ideate and prototype TaxTrim, ensuring a user-centric design. The development phase involved iterative testing with ChatGPT-4, focusing on optimizing its integration for financial advice and ensuring accurate, compliant tax-related responses. This process was a crucial part of building ChatGPT-powered finance tools that are designed to meet the specific needs of the tax-filing public.

Discover expert project management secrets by reading our article here.

Why TaxTrim Stands Out: The ChatGPT Advantage in Tax Software

The landscape of tax filing software is populated with several key players, such as TurboTax, H&R Block, and TaxAct. These platforms offer a range of features designed to simplify the tax filing process, including step-by-step guidance, error checking, and deductions discovery.

However, they have limitations. For instance, users often report that these platforms can be challenging to navigate for those with complex tax situations or limited tax knowledge. Additionally, the impersonal nature of these platforms can leave users feeling uncertain and unsupported, particularly when dealing with nuanced tax questions or seeking personalized tax advice with ChatGPT.

TaxTrim aims to fill these gaps by leveraging ChatGPT-4's advanced conversational AI capabilities. Unlike traditional tax software that follows a static, form-based approach, TaxTrim offers a dynamic, interactive experience.

Users can ask specific questions and receive personalized tax advice, making tax filing more accessible for individuals with varying levels of tax knowledge and complexity in their financial situations. By integrating ChatGPT in finance apps, TaxTrim not only simplifies the tax filing process but also provides a level of engagement and personalization that current solutions lack, marking a significant step forward in the use of AI for financial applications.

Why TaxTrim Stands Out: The ChatGPT Advantage in Tax Software

Choosing the Right Technology

To develop TaxTrim, we selected a robust technology stack that combines reliability, scalability, and ease of integration with advanced AI capabilities, especially focusing on ChatGPT-4, to bring about innovations in AI tax software.

Frontend: Flutter was chosen for its versatility in creating engaging user interfaces across multiple platforms from a single codebase. Its customizable widgets enable a smooth, unified experience on both mobile and web, playing a crucial role in designing easy tax software with AI.

Backend: On the backend, Python was chosen for its simplicity and robust library ecosystem. It excels in handling complex logic and integrating with AI technologies like ChatGPT-4, making it ideal for developing TaxTrim's intelligent features. Node.js, with its event-driven architecture, was used for the backend to handle asynchronous calls and manage heavy I/O operations efficiently, ensuring quick processing of tax calculations and AI interactions. This backend setup is key to finding tax deductions using ChatGPT.

Database: MongoDB, a NoSQL database, was selected for its scalability and flexibility in handling a variety of data types, making it ideal for storing user profiles, tax records, and AI response logs, which are essential for innovations in AI tax software.

AI Integration: ChatGPT integration was facilitated through OpenAI's API, allowing TaxTrim to leverage the AI's conversational capabilities for tax advice and query resolution. This integration is at the heart of finding tax deductions using ChatGPT, offering users a highly personalized and efficient tax filing experience.

Cloud Services: AWS (Amazon Web Services) was used for hosting the application and managing the infrastructure, ensuring high availability and scalability. This choice supports the overall goal of designing easy tax software with AI, by providing a reliable and scalable platform that can adapt to the needs of a growing user base.

Choosing the Right financial app Technology

Designing for Simplicity: The User Experience of TaxTrim

In crafting TaxTrim, we prioritized a design that strips away the complexity of tax filing, transforming it into a straightforward, engaging process. Here’s a closer look at our design ethos:

Direct and User-Friendly Interface: We made sure that when you open TaxTrim, you're not bombarded with forms and technical jargon. Instead, you're greeted with a simple, step-by-step walkthrough. It's akin to using a smart checklist that knows exactly what you need to do next, tailored to your tax situation. For instance, if you've got freelance income, TaxTrim intuitively guides you through the necessary deductions and documents.

Tailored Tax Guidance: Harnessing the power of ChatGPT-4, TaxTrim acts like your personal tax consultant. It asks questions about your financial year – like any investments or significant purchases – and uses your answers to tailor advice specifically for you. This means if you’ve had a major life event, say buying a house or starting a business, TaxTrim adapts its advice to ensure you get every tax advantage available to you.

Clarifying the Complex: One of TaxTrim’s core missions is to make tax law as understandable as a children’s book. Instead of leaving you to decode IRS documents, TaxTrim offers explanations in plain language. For example, if you’re wondering about deductions for a home office, TaxTrim explains the criteria in a straightforward manner, ensuring you know exactly what expenses can be deducted and why.

By focusing on these aspects, TaxTrim aims to empower users, making them feel confident about their tax filing. It’s not just about filing taxes; it’s about understanding them, ensuring users are informed and making the best financial decisions. This approach demystifies the tax filing process, making it accessible, informative, and, dare we say, enjoyable.

Development Stages of TaxTrim

The development of TaxTrim followed a phased approach:

1. Planning: This phase involved defining the scope, identifying user needs, and mapping out the application's functionality and AI integration points.

Learn how to craft a brilliant technical specification for app development in our detailed guide here.

2. Design: User interface designs were created, focusing on simplicity and ease of navigation, with mockups that highlighted the integration points for ChatGPT-4.

3. Coding: Development was split between frontend and backend teams, with continuous integration of ChatGPT-4 to test conversational interfaces and tax advice logic.

4. Testing: Rigorous testing phases, including unit tests, integration tests, and user acceptance testing, ensured the application was reliable and user-friendly. Special attention was given to the AI's accuracy in responding to tax-related queries.

5. Deployment: After testing, TaxTrim was deployed using AWS, ensuring scalability to handle user demand.

Development Stages of TaxTrim

Find out why successful startups in 2023 are betting big on chatbot integration by reading our analysis here.

Integrating ChatGPT-4 into Financial App TaxTrim

Integrating ChatGPT-4 into TaxTrim made it smarter and more user-friendly. Here's how we did it in simple steps:

1. Connecting to ChatGPT-4

First, we set up a way for TaxTrim to talk to ChatGPT-4. When you ask something like "Can I deduct my study costs?" TaxTrim sends this question over the internet to ChatGPT-4. We made sure this connection is safe and that ChatGPT-4 knows exactly what we're asking about.

2. Interpreting ChatGPT-4 Responses

After ChatGPT-4 replies, TaxTrim uses special rules to understand the answer. Let's say ChatGPT-4 gives us a lot of details about education deductions. TaxTrim looks at your specific situation—like how much you earn or if you're studying—to pick out the advice that fits you best. It's like having a smart friend who knows a lot about taxes and can tell you exactly what you need to know.

3. Keeping the Focus on Tax Advice

We also taught TaxTrim to keep ChatGPT-4 focused on tax questions. This means when you talk to TaxTrim, it knows you're asking about taxes and keeps the conversation on track. We did this by setting up special tax-related questions that help ChatGPT-4 give you the right kind of advice.

Technical Insights: Incorporating ChatGPT-4

The integration of ChatGPT-4 into the TaxTrim application involved a series of comprehensive steps to ensure a secure, efficient, and user-friendly service for handling complex tax-related queries. Here's a breakdown of the work done:

1. Setting Up a Secure Flask Application

  • Developed a robust backend using the Flask framework to manage HTTP requests efficiently.
  • Configured SQLAlchemy for database operations, enabling smooth data transactions and user profile management.
  • Implemented JWT (JSON Web Tokens) for secure authentication, ensuring that user sessions are safely managed and that access is restricted to authenticated users.

from flask import Flask, request, jsonify

from flask_sqlalchemy import SQLAlchemy

from flask_jwt_extended import JWTManager, create_access_token, jwt_required, get_jwt_identity

import openai

import os

app = Flask(__name__)

app.config['SQLALCHEMY_DATABASE_URI'] = 'sqlite:///taxtrim.db'

app.config['JWT_SECRET_KEY'] = os.urandom(24)

db = SQLAlchemy(app)

jwt = JWTManager(app)

openai.api_key = os.getenv('OPENAI_API_KEY')

2. User Model and Authentication

  • Designed a user model to securely store user information, including a hashed password for enhanced security.
  • Implemented user authentication, allowing for secure registration and login processes. This ensures that only authorized users can access their tax advice and personal information.

from import generate_password_hash, check_password_hash

class User(db.Model):

   id = db.Column(db.Integer, primary_key=True)

   username = db.Column(db.String(80), unique=True, nullable=False)

   password_hash = db.Column(db.String(128))

   def set_password(self, password):

       self.password_hash = generate_password_hash(password)

   def check_password(self, password):

       return check_password_hash(self.password_hash, password)

# Add user registration and login routes here

3. Complex Query Handling with ChatGPT-4

  • Developed a custom service to format user questions into queries that are suitable for ChatGPT-4, incorporating user tax profiles to make the queries more specific and relevant.
  • Integrated OpenAI's ChatGPT-4 API to send these formatted queries and receive detailed, personalized tax advice in real-time.
  • Implemented logic to parse and process ChatGPT-4's responses, ensuring the advice provided is accurate, relevant, and easily understandable by the user.

def format_query(user_profile, question):

   # Format the query based on user's tax profile and question

   return f"Given a user with {user_profile}, how would you address the following tax question: {question}"

def ask_chatgpt(user_query):

   response = openai.Completion.create(

       engine="text-davinci-004",  # Assuming the latest model








   return response.choices[0].text.strip()

@app.route('/tax_advice', methods=['POST'])


def get_tax_advice():

   user_id = get_jwt_identity()

   user_profile = get_user_profile(user_id)  # Assume this function retrieves user's tax profile

   question = request.json.get('question', '')

   formatted_query = format_query(user_profile, question)

   advice = ask_chatgpt(formatted_query)

   return jsonify({"advice": advice})

Scalability and Performance Considerations

When integrating ChatGPT-4 into a complex application like TaxTrim, it's essential to consider scalability and performance. This means implementing caching strategies for frequently asked questions, using async/await for non-blocking API calls, and possibly queuing systems for handling high volumes of requests during peak times.

Security and Data Privacy

Ensuring user data privacy and application security, especially when handling sensitive financial information, is paramount. Implement HTTPS for secure communication, regularly audit dependencies for vulnerabilities, and ensure GDPR compliance for handling user data.

Ensuring Quality and Security

When we developed TaxTrim, making sure it worked well and met our users' needs was a top priority, especially focusing on ensuring security in AI finance apps.

Here’s how we did it:

  1. Automated Testing: We used automated tests to quickly check if every part of TaxTrim, from calculating taxes to chatting with ChatGPT-4, worked as expected. For example, we tested if the app correctly calculates tax deductions for different kinds of expenses, like home office costs or education fees, an essential part of AI in financial planning and tax saving.
  2. Performance Testing: We made sure TaxTrim could handle lots of users at the same time, especially during tax season. This involved simulating many people using the app simultaneously to see how fast it responds, which is crucial for updating tax software with ChatGPT.
  3. Security Testing: Since TaxTrim deals with personal and financial information, we tested it thoroughly for security. This included checking for vulnerabilities that could let hackers in and making sure all data is encrypted and safe, a key aspect of ensuring security in AI finance apps.
  4. Integration Testing with ChatGPT-4: We specifically tested how well TaxTrim and ChatGPT-4 worked together. This meant checking if the app could correctly send questions to ChatGPT-4 and if the answers from ChatGPT-4 were accurate and relevant to tax queries, facilitating the process of simplifying tax form selection via ChatGPT.

Perfecting with Feedback

  • Beta Testing Feedback: Before the final release, we let a group of users try TaxTrim and tell us what they thought. For instance, one user mentioned that they found the tax deduction explanations really helpful but wished they were simpler to understand. Based on this, we worked with ChatGPT-4 to make the responses more user-friendly.
  • Improvements from Feedback: We made several improvements to TaxTrim based on user feedback. We simplified the user interface, making it easier for users to navigate through the app. We also added more examples and FAQs to help users get better tax advice from ChatGPT-4.
  • Ongoing Updates: After launching, we kept collecting feedback to continuously improve TaxTrim. When users asked for more personalized tax-saving tips, we updated the ChatGPT-4 integration to provide customized advice based on the user’s income, deductions, and tax credits.

Through thorough testing and listening to our users, we made TaxTrim reliable, secure, and user-friendly, helping people navigate their taxes with ease and confidence.

Challenges and Solutions in Developing TaxTrim

In developing TaxTrim, we encountered several key challenges that needed careful attention and strategic solutions to create a reliable and user-friendly application.

Keeping User Data Safe

We needed to make sure all the personal and tax information users put into TaxTrim stayed private and secure.

How We Solved It: Implemented AES-256 encryption for data at rest and TLS 1.3 for data in transit. Utilized OWASP best practices for secure API development, ensuring robust authentication and authorization mechanisms.

Staying Up-to-Date with Tax Laws

Tax rules can change often, and we had to keep TaxTrim smart about the latest laws.

How We Solved It: Developed a dynamic content update system using Python scripts to periodically fetch and update tax law changes from reliable sources. Integrated a rule-based engine in Python to adapt responses based on the latest tax regulations.

Making ChatGPT-4 Give Tax Advice

ChatGPT-4 knows a lot, but we needed it to focus on giving specific tax help.

How We Solved It: Created specialized prompts and utilized the OpenAI API's "temperature" and "max_tokens" parameters to steer conversations towards tax-specific advice. Developed a Python-based middleware that preprocesses user queries to include context relevant to financial situations before forwarding them to ChatGPT-4.

Giving Personalized Advice

Everyone’s tax situation is different, and we wanted TaxTrim to give advice that fits each person.

How We Solved It: Leveraged Python's Flask framework to build RESTful APIs that collect user-specific information (e.g., employment status, investment portfolio). This data is then used to modify ChatGPT-4 prompts dynamically, ensuring the advice is personalized. Integrated a feedback loop where user interactions refine the AI's response accuracy over time.

By tackling these challenges, we made TaxTrim not just another tax app but a smart, secure, and personalized tax helper.

Case Study: Making Tax Filing Easier with TaxTrim

Integrating ChatGPT into financial applications not only enhances customer support but also pioneers in automating complex tasks like building financial models and even contributing to the development of applications. By leveraging the ChatGPT API, developers unlock the potential of AI systems to perform natural language processing (NLP), enabling the interpretation and generation of text based on custom data inputs. This innovation allows financial institutions to offer personalized services, conduct efficient risk assessment, and assist users in making informed decisions.

The versatility of ChatGPT means it can be seamlessly integrated into existing platforms or utilized in the creation of new applications, answering the question, "Can ChatGPT build an app?" Moreover, its capability extends to assisting in the development of financial models, addressing queries like "Can ChatGPT build financial models?"

Whether it's streamlining interactions with tax preparers, simplifying the tax return process, or offering advanced risk management solutions, ChatGPT's ability to understand and engage in contextually relevant conversations marks a significant leap forward for AI in financial services. Through ChatGPT, developers can enhance user experiences and forge innovative, efficient, and user-centric financial applications.

Conclusion: Innovating Financial Applications with Cutting-Edge AI

Integrating ChatGPT into TaxTrim wasn't just about making tax filing easier. It was a step towards transforming how we interact with financial applications. Users now have a tool that understands them, adapts to changes in tax laws, and offers tailored advice, setting a new standard in the financial tech landscape.

Looking ahead, we're exploring ways to make TaxTrim even smarter. Imagine an app that not only helps with taxes but also offers financial planning tips, investment advice, and real-time updates on tax savings opportunities. The future is about creating a financial assistant that knows your needs before you do.

This journey into AI-driven finance is just beginning, and we at Ptolemay, a full-cycle development company, are at the forefront. Whether you're looking to create the next big thing in fintech or revolutionize how financial services are delivered, we're here to turn your vision into reality. Join us in shaping the future of finance, where technology meets personal touch to create solutions that truly matter.