AI preparation with human review
Taxably vs. Magnetic Tax
A 1040 preparation service combining AI drafts with US-based EA or CPA review. Taxably focuses on turning existing client folders into prep sheets.
Researched · USD
Pricing and what it covers
Taxably · Document organization and prep sheets
$10 per return
Plus $5 monthly firm fee
First 10 clients free, then $10 per return, plus $5 a month for the firm. No page charges.
The $5 monthly firm fee starts the day you add your card. The $10 per return starts after your first 10 clients. Card required to start.
Taxably pricing and billing detailsMagnetic Tax · Quote required
1 to 3 credits per return
Credit price provided through a demo
- Simple returns use one credit; complex returns can use up to three.
- No dollar price per credit or package minimum is published.
- Your first return is free, with self-serve sign-up.
These prices cover different work. A prep sheet, a software platform, and a professionally reviewed return are different deliverables.
What to budget for your firm
Compare a worked example, with the price basis and limits visible.
Assumes 10 eligible free clients at Taxably. Clear this option if those allowances are unavailable.
One firm, one return per client for one tax year, and 12 monthly firm fees where applicable. Before tax, staff time, existing tax software, and unlisted add-ons. Different products cover different work; these are budget calculations, not promised savings or measured performance.
Taxably
Calculated annual cost
$4,960
490 paid returns × $10 + 12 × $5.
$9.92 per return across 500 returns, including the firm fee.
Document organization and prep sheets. Your firm still prepares and files the return.
Taxably pricing and billing detailsMagnetic Tax
Credit estimate · dollar price unpublished
500 to 1,500 credits
Preparation credits
For 500 returns at 1 to 3 credits each. An illustrative mix of 70% one-credit, 20% two-credit and 10% three-credit returns uses 700 credits.
Simple returns use one credit; complex returns use up to three. Multiply the credits needed by the quoted dollar price per credit, then apply any package minimum. This includes vendor-provided professional review, a different scope from a prep-sheet tool.
Source for this estimate for Magnetic Tax (opens in a new tab)What Magnetic Tax does
Magnetic adds preparation capacity rather than software for your team to run. Your firm uploads a client's documents and last year's file, its AI enters the return into your tax software, a US-based licensed EA or CPA checks it, and your firm receives an upload-ready file with workpapers and open items for final review and filing.
- Extra preparation capacity without running the AI internally.
- Licensed professional review before delivery to your firm.
- An overflow option when staffing is short.
- First return free to try.
How the workflow compares
| Workflow | Taxably | Magnetic Tax |
|---|---|---|
| How work starts | Reads connected client folders on your Windows computer. Clients keep their existing way of sending documents. | Your firm uploads client documents and last year's client file to Magnetic's portal. |
| What you receive | A bookmarked PDF prep sheet per client and tax year, with source documents and items needing attention. | A prepared 1040 as an upload-ready file for your tax software, with workpapers, a summary and unresolved items. |
| Tax software | Works alongside your tax software. Does not enter figures into it or e-file returns. | Names Drake, Lacerte, CCH Axcess, ProConnect and UltraTax. |
| Who reviews | Your preparer checks the source documents, resolves open items, and prepares the return. | A US-based licensed EA or CPA checks every return before your firm's final review and sign-off. |
| Document handling | Documents and prep sheets on your firm's systems; external reading of document images. Your firm manages backups. | Client documents are uploaded to Magnetic and read by the AI and cloud providers on its subprocessor list, all in the United States, and by Magnetic's own reviewers. |
How work starts
- Taxably
- Reads connected client folders on your Windows computer. Clients keep their existing way of sending documents.
- Magnetic Tax
- Your firm uploads client documents and last year's client file to Magnetic's portal.
What you receive
- Taxably
- A bookmarked PDF prep sheet per client and tax year, with source documents and items needing attention.
- Magnetic Tax
- A prepared 1040 as an upload-ready file for your tax software, with workpapers, a summary and unresolved items.
Tax software
- Taxably
- Works alongside your tax software. Does not enter figures into it or e-file returns.
- Magnetic Tax
- Names Drake, Lacerte, CCH Axcess, ProConnect and UltraTax.
Who reviews
- Taxably
- Your preparer checks the source documents, resolves open items, and prepares the return.
- Magnetic Tax
- A US-based licensed EA or CPA checks every return before your firm's final review and sign-off.
Document handling
- Taxably
- Documents and prep sheets on your firm's systems; external reading of document images. Your firm manages backups.
- Magnetic Tax
- Client documents are uploaded to Magnetic and read by the AI and cloud providers on its subprocessor list, all in the United States, and by Magnetic's own reviewers.
Source documents and prep sheets stay on your firm's systems. Document images go directly from your computer to an external reading provider, which is not permitted to train on them. This is not an entirely offline workflow. Taxably's data handling
Which fits your firm?
Consider Taxably when
Your own team prepares the return and wants every client's documents organized into a prep sheet the same day the folder is ready, at a published price, without sending client files to an outside preparer.
Consider Magnetic Tax when
You want to hand off 1040 preparation and receive work already checked by another professional, and can wait a few days per return.
Before you decide
- 1040s only; no business returns.
- Its stated average turnaround is 2 to 4 days per return.
- No published dollar price per credit.
- Client documents are seen by Magnetic's reviewers and four cloud and AI providers; account for that in your WISP and §7216 consents.
Common questions
Sources and review date
Sources reviewed on October 28, 2026. Follow the source for current terms.
- Service, credits, and delivery (opens in a new tab)
1040 service, complexity credits, free first return, turnaround and fee-credit remedy.
- Subprocessors (opens in a new tab)
Hosting and AI providers and their locations.
- Accounting Today: Magnetic launches tax agent (June 2026) (opens in a new tab)
Supported tax software, 1040-only scope and review time.
See it on your own client folders.
Watch a sample prep sheet, then create your account and point Taxably Connect at one client folder. The download is in your account once it is set up.
Published by Taxably. Reviewed October 28, 2026 using the official sources linked on each page. Product descriptions are vendor statements, not independent performance tests. Prices are in USD; quotes, taxes, contract terms, and availability may differ. Trademarks belong to their owners. Send corrections to support@taxably.ai. Suggest a correction