Managing taxes on investments can be tricky, especially if you have multiple brokerage accounts. Taxes on dividends, capital gains, and trades can reduce your returns by up to 1.5% annually. Over time, this adds up - potentially costing tens of thousands of dollars.
This is where Mezzi comes in. Mezzi is a tax planning tool designed to help you manage your investment taxes efficiently. It connects to your brokerage accounts like Fidelity, Schwab, and Vanguard through read-only access, providing actionable insights to reduce taxes and maximize your returns. Key features include:
- Tax-loss harvesting alerts: Identifies opportunities to sell underperforming investments to offset gains.
- Wash sale monitoring: Tracks transactions across accounts to prevent costly tax mistakes.
- Asset location recommendations: Helps place investments in the most tax-efficient accounts.
With plans starting at $299/year, Mezzi offers a cost-effective alternative to human advisors, helping you keep more of your hard-earned money.
What Is Tax-Loss Harvesting & How To Do It? - 8/19/25 | Market Sense | Fidelity Investments
Mezzi's Tax Optimization Features
Using AI-driven insights, Mezzi provides tools designed to improve tax outcomes across your brokerage accounts.
Tax-Loss Harvesting Guidance
Many investors wait until December to explore tax-loss harvesting, but Mezzi takes a proactive approach. By monitoring your connected brokerage accounts daily, it identifies losses that could offset gains or reduce taxable income by up to $3,000 annually. For example, if a $10,000 stock drops to $7,500, Mezzi might recommend selling it and breaking down the potential tax savings. Acting quickly is key - if you spot a $2,500 unrealized loss in March and you're in a 24% tax bracket, you could save about $600. Mezzi also suggests alternative ETFs to maintain market exposure while managing taxes. Plus, it keeps an eye on other tax risks across all your accounts, ensuring seamless oversight.
Wash Sale Risk Monitoring Across Accounts
The IRS prohibits claiming a loss if you repurchase a "substantially identical" security within 30 days before or after selling it - a rule that applies across all accounts, even IRAs and spousal accounts. For those juggling multiple brokerage accounts, tracking these windows manually can be overwhelming. Mezzi simplifies this by consolidating transaction data from all linked accounts and monitoring trades in real time. For instance, if you sell $5,000 of Apple stock at a loss in your taxable account but repurchase the same amount in your IRA within 15 days, Mezzi will flag it with an alert like, "Wash sale detected - $5,000 loss deferred." This allows you to decide whether to adjust your holdings or wait out the 30-day period, potentially saving $1,200 in taxes at a 24% rate. Mezzi also enhances your tax strategy by optimizing where you hold your assets.
Capital Gains and Asset Location Optimization
Taxes on investments vary depending on account type, making asset location a crucial part of minimizing tax liability. Mezzi evaluates your cost basis, holding periods, and account types - whether taxable, Roth IRA, or traditional IRA - to create a more tax-efficient portfolio. For example, short-term gains are taxed as ordinary income (up to 37%), while long-term gains are taxed at lower rates (0% to 20%). Mezzi tracks your investments down to the day, notifying you when a security is close to the one-year mark for long-term capital gains eligibility.
For asset location, Mezzi might recommend placing high-dividend bonds, which yield around 4%, in a tax-deferred IRA to avoid immediate taxation - saving roughly $800 annually. Similarly, it could advise holding tax-inefficient REITs in a Roth IRA while keeping dividend stocks in taxable accounts. In a $500,000 portfolio, these adjustments could lower your overall tax burden by about 12% compared to less efficient allocations.
How Mezzi's Tax Features Work in Practice
Here’s how Mezzi's AI-driven tools translate into practical, real-world tax benefits.
Example: Avoiding a Wash Sale Across Multiple Accounts
Imagine this scenario: You sell 100 shares of Tesla stock in your taxable Fidelity account on April 15, 2026, taking a $4,000 loss to claim on your taxes. But then, on April 28, you repurchase the same shares in your Roth IRA. According to IRS rules, the $4,000 loss is disallowed because it’s considered a wash sale - and at a 24% tax rate, that means you lose $960 in potential tax savings.
Mezzi steps in to prevent this. It consolidates data from all your accounts and flags potential wash sale risks. For example, when you sell Tesla in your Fidelity account, Mezzi starts monitoring the 30-day window. If you try to repurchase Tesla in any linked account during that period, you’ll get an alert like: "Wash sale detected - $4,000 loss deferred." This gives you the chance to either wait until the 30-day period ends or choose an alternative investment to keep your market exposure intact. By catching these risks early, Mezzi helps you avoid costly mistakes and keeps your tax strategy on track.
And it doesn’t stop there - Mezzi also spots tax-loss opportunities throughout the year.
Example: Finding Tax-Loss Harvesting Opportunities Year-Round
Tax-loss harvesting isn’t just for the end of the year. Take this example: On June 10, 2026, your small-cap ETF drops in value from $15,000 to $11,500, creating a $3,500 loss. At a 32% tax rate, that loss could save you $1,120 in taxes. Mezzi continuously monitors your accounts and flags these opportunities in real time. It not only identifies the loss but also suggests comparable ETFs to help you maintain your market exposure. Acting on this alert in June allows you to lock in the tax benefit and position yourself for potential gains with the replacement ETF. This kind of proactive monitoring ensures you’re always ready to take advantage of tax-saving moves.
Beyond transactions, Mezzi also helps you allocate assets more effectively.
Example: Placing Assets in the Right Account Types
Let’s say you have a $100,000 portfolio spread across a taxable brokerage account, a traditional IRA, and a Roth IRA. Currently, you hold high-yield corporate bonds in your taxable account, which generate $5,000 in annual interest. At a 32% tax rate, that’s $1,600 in annual taxes. Meanwhile, your growth stocks sit in your traditional IRA, where they’ll eventually be taxed upon withdrawal. This setup isn’t ideal.
Mezzi identifies this inefficiency and suggests a smarter allocation. For instance, moving the corporate bonds to a tax-deferred account like your IRA eliminates the $1,600 tax burden. At the same time, shifting growth stocks to your Roth IRA takes advantage of its tax-free growth potential. Mezzi might also recommend keeping tax-efficient index funds in your taxable account to benefit from lower long-term capital gains rates. These adjustments not only reduce taxable income but also improve your portfolio’s overall tax efficiency over time.
Mezzi Pricing Plans and Tax Features
Mezzi Tax Planning Software Pricing Plans Comparison
Mezzi tailors its pricing tiers to meet the diverse needs of investors, offering three distinct plans: Core, Plus, and White Glove. Each plan comes with essential tax planning tools, but they differ in terms of advanced features and support levels.
Across all plans, Mezzi provides key tax features such as daily portfolio monitoring, wash sale tracking across linked accounts, and alerts for holding period transitions - helping investors take advantage of long-term capital gains rates, which could significantly lower their tax burden.
Here’s a breakdown of the pricing and features:
| Plan Name | Price | Key Tax Features | Support Level |
|---|---|---|---|
| Core | $299/year | Tax optimization insights, X-Ray tool, alerts | 24/7 AI chat support |
| Plus | $499/year | Enhanced tax insights and priority access to features | Concierge-level support via email, video, and phone |
| White Glove | $1,499/year | Personalized coaching with unlimited custom guidance | Dedicated support calls |
What Each Plan Offers
- Core Plan ($299/year): Perfect for independent investors, this plan delivers alerts for tax-loss harvesting and wash sale risks, empowering you to act on opportunities. It also includes 24/7 AI chat support for quick answers to specific questions.
- Plus Plan ($499/year): Designed for those managing more complex portfolios, this plan offers enhanced AI-driven tax insights and priority access to new features. You also get concierge-level support via email, video, and phone to help navigate more intricate scenarios, like handling multiple accounts.
- White Glove Plan ($1,499/year): Ideal for investors seeking hands-on guidance, this premium option provides personalized coaching through video calls and unlimited access to Mezzi's team for custom tax strategy discussions.
Important Note
Mezzi operates in a read-only capacity with your accounts. While the platform identifies tax-saving opportunities and strategies, you’ll need to handle trade execution and tax filings on your own.
Getting Started with Mezzi for Tax Planning
Connecting Your Brokerage Accounts to Mezzi
Kick things off with a quick 5-minute onboarding call with Mezzi's founder. This personalized session helps align Mezzi with your specific financial goals and identifies immediate tax-saving opportunities. Once the call is done, you can link your brokerage accounts through Plaid in just a couple of minutes. Make sure to connect all your accounts - taxable brokerage accounts, IRAs, 401(k)s, and even accounts tied to liabilities. This step is crucial because having a full view of your holdings allows Mezzi to accurately track wash sale risks and uncover tax-loss harvesting opportunities. After connecting your accounts, Mezzi gets to work automatically, analyzing your portfolio for tax-saving possibilities.
Setting Up Mezzi's Tax Optimization Features
Mezzi’s Tax Optimization tool does the heavy lifting by scanning your portfolio for opportunities like tax-loss harvesting and avoiding wash sales. It keeps an eye on your portfolio every day and sends alerts when actionable tax opportunities arise. For example, Mezzi will notify you when a position shifts from short-term to long-term capital gains status. It also tracks the 30-day wash sale window across all your linked accounts, ensuring you don’t accidentally trigger a wash sale. Plus, it pinpoints the exact date a position hits the 12-month mark for long-term capital gains, which could cut your tax rate significantly. These features work together to provide a complete approach to tax planning for all your accounts.
Acting on Mezzi's Tax Recommendations
When Mezzi sends you actionable insights, the ball is in your court to execute trades. For instance, if you’re alerted to a tax-loss harvesting opportunity, you’ll need to sell the security through your brokerage platform and wait at least 30 days before repurchasing it to avoid a wash sale. Since market conditions can change quickly, it’s smart to act on these alerts promptly. With Mezzi’s continuous insights throughout the year, you can take consistent steps to reduce your overall tax burden.
Conclusion
Effective tax planning plays a crucial role in getting the most out of your investment returns.
What Brokerage Account Holders Should Know
Mezzi provides three key tax planning tools designed to help reduce your tax burden:
- Tax-loss harvesting guidance: This feature continuously reviews your portfolio to identify opportunities to sell assets at a loss, which can offset capital gains. For example, harvesting $10,000 in losses could save you between $1,500 and $3,000 in taxes.
- Wash sale risk monitoring: By tracking all your connected accounts, this tool ensures you don't accidentally repurchase "substantially identical" securities within the IRS's 30-day window, which would disqualify those losses from being deducted.
- Asset location optimization: This analyzes your taxable, traditional, and Roth accounts to suggest the most tax-efficient placement for your investments. For instance, high-dividend stocks might be better suited for a Roth IRA, where they can grow tax-free.
The Benefits of AI-Driven Tax Advice
Mezzi’s AI-driven tax planning offers substantial savings compared to traditional advisors. While human advisors typically charge around 1% of your assets - $5,000 annually for a $500,000 portfolio - Mezzi’s plans start at just $299 per year. That’s an 80% to 90% cost reduction. Plus, Mezzi provides features like multi-account wash sale tracking, which many human advisors might overlook.
FAQs
Which accounts should I connect to Mezzi?
Connect your taxable accounts, IRAs, and 401(k)s to Mezzi to streamline tax management and simplify handling multiple accounts. By linking everything, Mezzi delivers personalized insights to help you reduce taxes and boost returns across your entire portfolio.
Will Mezzi catch wash sales across IRAs and spouse accounts?
Mezzi keeps an eye on wash sales across IRAs and spouse accounts by monitoring all accounts together. This approach helps users stay compliant and manage their investments efficiently.
How do I use Mezzi’s alerts without changing my portfolio risk?
To make the most of Mezzi’s alerts without increasing your portfolio's risk, take advantage of its real-time monitoring and customized notifications. These alerts are designed to spot tax-loss harvesting opportunities, highlight asset allocation imbalances, and track market changes - all while staying compliant with IRS rules, including wash sale regulations.
Use these tailored alerts to guide your decisions, like rebalancing your portfolio, but only act on them if they align with your risk tolerance. This way, you can keep your risk profile steady while benefiting from Mezzi's insights.
Disclosures:
- This content is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security.
- Past performance is not indicative of future results. No guarantee of future performance or outcomes is implied.
- Savings and performance examples are hypothetical and for illustrative purposes only. Actual results will vary based on individual circumstances, portfolio composition, market conditions, and fees.
- Mezzi operates in a read-only capacity and does not execute trades or file taxes on your behalf.
- Registration does not imply a certain level of skill or that the SEC has approved the company or its services.
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