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What Is Tax Mode?

Tax Mode is a specialized Hazel Mode designed to help financial advisors analyze tax returns, understand tax outcomes, and explore planning considerations through conversation. Modes are purpose-built experiences within Ask Hazel. While Ask Hazel is flexible and open-ended, Modes provide structure, intent, and depth for complex workflows. Tax Mode applies this approach specifically to tax planning—bringing together advanced analysis, connected data, and generative reporting in a single guided experience. Tax Mode is built for paraplanners and advisors who understand core tax concepts and want a faster, clearer, and more flexible way to work through tax analysis without relying on manual workflows.

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What Tax Mode Helps You Accomplish

Tax Mode helps you move from raw tax documents to clear understanding and actionable insight. With Tax Mode, you can:
  • Analyze tax returns and supplemental tax documents in context
  • Understand how income, deductions, and credits contribute to total tax liability
  • Review marginal and effective tax rates and how income flows through brackets
  • Identify observations and planning considerations based on the client’s situation
  • Explore “what-if” scenarios through conversation
  • Generate interactive, client-ready tax reports
  • Export reports as PDFs or data as CSVs when needed
Tax Mode is designed to support analysis, exploration, and explanation—helping you form your own recommendations with greater confidence.

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How Tax Mode Works

Tax Mode follows a structured but flexible workflow that adapts as you engage with it.
  1. Start a conversation in Tax Mode From the Ask Hazel page, select Tax Mode before beginning your chat.
  2. Upload tax documents A tax return or supplemental tax document is required to get started. You may upload multiple documents, including large files or multiple years of returns.
  3. Analysis and clarification Hazel analyzes the uploaded documents and uses relevant connected data—such as CRM information, emails, calendar entries, meeting notes, and custodial data—when available. If additional information is needed, Hazel will ask clarifying questions before proceeding.
  4. Interactive tax report generation Hazel produces an interactive tax report based on the documents and context provided.
  5. Ongoing exploration You can ask follow-up questions, request changes, explore scenarios, or export outputs—all through conversation.
You remain in control throughout the process, deciding what to review, adjust, or explore further.

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What’s Included in the Tax Analysis

By default, Tax Mode generates a comprehensive, interactive tax report focused on clarity and decision support. The report includes:
  • Tax Summary & Key Figures A complete snapshot of the client’s tax situation, including total income, AGI, deductions, taxable income, total tax, filing status, marginal and effective tax rates, and summaries of dividends and capital gains.
  • Ordinary Income Bracket Analysis A clear view of how income is taxed across brackets and how much room remains in the current marginal bracket.
  • Capital Gains & Dividend Analysis Long-term capital gains and qualified dividends analyzed against applicable thresholds.
  • Medicare & IRMAA Considerations Medicare Part B and Part D impacts, including IRMAA thresholds, when applicable.
  • Deductions Overview A comparison of standard versus itemized deductions and how deductions contribute to overall tax outcomes.
  • Income Sources Summary A breakdown of income sources to help contextualize where taxable income originates.
  • MAGI Planning Considerations A structured view of how different MAGI definitions affect eligibility and phaseouts for deductions, credits, and benefits, shown as under threshold, above threshold, or in phaseout.
These sections update as you ask Hazel to refine the analysis or explore additional questions.

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Observations and Scenario Exploration

Tax Mode proactively surfaces observations based on the tax return and available context. These observations highlight areas you may want to explore further—they are not recommendations. Examples include:
  • Bracket management and Roth conversion considerations
  • IRMAA thresholds and Medicare-related planning
  • Charitable strategies such as donor-advised funds or qualified charitable distributions
  • Education credits and related phaseouts
  • Social Security and income timing considerations
If you choose to continue, you can explore scenarios directly in chat. Scenario exploration is advisor-driven:
  • You decide what assumptions or inputs to change
  • Hazel recalculates the analysis based on your request
  • Visuals and figures update when you instruct Hazel to update them
Scenarios are exploratory by design and help you understand tradeoffs and implications before taking next steps.

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Common Use Cases

Advisors commonly use Tax Mode to:
  • Prepare for annual client tax reviews
  • Quickly understand a client’s tax situation before a meeting
  • Identify tax planning considerations worth discussing
  • Explore the impact of potential changes through scenario analysis
  • Collaborate more effectively with CPAs and tax professionals
  • Explain complex tax concepts clearly using visual summaries

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What Tax Mode Can — and Cannot — Do

Tax Mode can:
  • Analyze tax returns and supplemental tax documents
  • Generate interactive tax reports and summaries
  • Surface observations and planning considerations
  • Support scenario-based exploration
  • Produce PDFs and CSV exports
Tax Mode cannot:
  • File or prepare tax returns
  • Submit documents to the IRS or state agencies
  • Provide tax advice directly to end clients
  • Replace a CPA or tax professional
  • Take actions on your behalf
Tax Mode is designed to help you analyze and understand tax information—not to execute or automate outcomes.

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Important Things to Know

  • Tax Mode works best when each conversation focuses on one client or household
  • Multiple documents and multiple tax years are supported, with emphasis on the most recent return and forward-looking analysis
  • Hazel uses connected data sources when available to add context and depth
  • Each Tax Mode conversation starts fresh (For more details, see the Modes Overview)

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Availability and Pricing

Tax Mode is coming soon. When available, Tax Mode will be offered as an add-on at $120 per user, per month.