Document auto-categorization in TaxCaddy

Auto-categorize documents

Sign in to TaxCaddy.
Select a client tile from the
Overview
screen.
Select
Documents
, then select
Uploaded Documents
.

Select the
Auto-Categorize
switch to turn the feature on or off. When enabled, Auto-Categorize will use AI to find a match and categorize any tax document you upload. You can also upload a single PDF with multiple tax documents, and auto-categorization will extract all the tax documents to categorize individually.
note
When necessary, you can select the
Auto-Categorize
switch to turn off the Auto-Categorization feature for yourself, allowing you to manually select categories when uploading documents.

note
Improve your Auto-Categorization results
TaxCaddy's AI-powered Auto-Categorization learns from your actions and improves the results over time. For example, when a document match is not found, Auto-Categorization places it in the
Uncategorized
section.
With the
Auto-Categorize
switch enabled, select
Drag and drop or click to upload documents
to select the document you'd like to Auto-Categorize.
note
Documents exceeding 200 MB can't be uploaded for auto-categorization.

You can also locate this file in your workstation, then drag and drop it into the upload area.

tip
Recommend uploading separate PDFs for each of your clients' tax forms for the best, most consistent results. Combining multiple forms into 1 PDF can increase the chance of a form getting miscategorized.
Once a document is selected, a toast notification will appear to indicate the file's upload percentage.

When the document upload reaches 100% complete, the toast notification will update to indicate that the Auto-Categorization process has begun.

The toast notification will be updated to
Auto-categorization is complete
once the document has been categorized.
The documents that TaxCaddy's AI has automatically categorized will appear in their respective categories in the
Uploaded Documents
tab.

In the
Categorization
column, Auto-Categorized documents will show the
AUTO
badge.
note
Documents that have been manually moved to a different category will show the badge as
MANUAL
instead of
AUTO
.

Users can select these documents in the Document Viewer panel to verify that TaxCaddy's AI accurately grouped the document's pages and placed them in the correct categories.

Restore pages

When using Document Auto-Categorization on larger files containing multiple forms, TaxCaddy AI will split the document as necessary to best categorize the forms within the larger file. If a document is incorrectly split and miscategorized, users can restore the pages to unify under the single original document.

From the Uploaded Documents panel, open the
Menu
of one of the forms that was incorrectly split from the original document then select
Restore original pages
.

The
Restore Original
Pages window will appear listing all of the forms found in the original document. Review the forms listed and select
CONTINUE
if you wish to proceed with the restoration.

The original larger document will be restored and placed in the
Uncategorized
section where you can begin your manual review.

Supported document types

Best practices

Use clear document scans.
Ensure that all documents are scanned clearly and at a high resolution. Poor‑quality scans can result in document miscategorization or missing/incorrect metadata.
Check file size before upload.
Confirm that each file is under the 200 MB upload limit. Larger files are not supported and may cause processing errors.
Verify multi‑page forms.
For multi‑page forms such as Form 1099‑DIV or Schedule K‑1, verify that all pages are grouped correctly. Continuation pages may require manual review to ensure accurate organization.
Don't combine closing or consolidated documents.
Closing statements, consolidated statements, and other non‑IRS documents should not be combined with standard IRS forms. Combining standard IRS forms with these documents may cause the entire document to be inaccurately categorized. We recommend that these documents be uploaded individually for proper categorization.
Review uncategorized documents.
Always review the documents listed in the
Uncategorized
section to ensure that each tax form is properly sorted in its respective category. Documents like instruction pages, pages with partial or incomplete information, or other non-standard pages can remain in the
Uncategorized
section.

Common questions

What are some key benefits of using Auto-Categorization?
Some of the key benefits include:
Auto-Categorize
: Automatically scans and recognizes the uploaded tax documents and organizes them into their tax categories. Saving you time from manually organizing each uploaded document.
Automatically splits pages
: You can upload a single PDF file containing various types of tax documents (that is, W-2s, 1099s, 1098s) and Auto-Categorization will separate PDF files for each document.
How will Auto-Categorization know which categories to file each document into?
TaxCaddy's AI-powered Auto-Categorization learns from your actions and improves the results over time.
Does Auto-Categorization have to be used for all clients when enabled?
Auto-Categorization within TaxCaddy is applied to all client profiles for each firm user. To turn this feature off when uploading documents for all clients, select the
Auto-Categorize
switch within a client's profile.
A firm user activating/deactivating Auto-Categorization will not impact other firm users' Auto-Categorization settings.
What document types are accepted when using the Auto-Categorize feature?
Auto-categorization works on PDF file formats.
Are there any size limitations to the documents?
Documents can't exceed 200 MB to qualify for Auto-Categorization. Documents exceeding this size will fail the Auto-Categorization process and must be split before uploading.
How long does the categorization process take?
There is no determined amount of time that the categorization process takes as multiple factors can contribute (that is, uploaded file size). We ask that users be patient as the categorization process takes place. You can go away from this client profile during categorization and return later.
Why are some pages missing after Auto-Categorization?
Pages without recognizable entities (for example, instruction pages, pages with partial or incomplete information, or other non-standard pages that don't clearly match a supported form) may be filtered out. Check the
Uncategorized
section after categorization.