What Does it Take to Be a Tax Preparer?
Job Description: Prepare tax returns for individuals or small businesses.
Tax Preparer Responsibilities
- Furnish taxpayers with sufficient information and advice to ensure correct tax form completion.
- Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
- Interview clients to obtain additional information on taxable income and deductible expenses and allowances.
- Consult tax law handbooks or bulletins to determine procedures for preparation of atypical returns.
- Explain federal and state tax laws to individuals and companies.
- Prepare or assist in preparing simple to complex tax returns for individuals or small businesses.
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What Skills Do You Need to Work as a Tax Preparer?
Tax Preparers state the following job skills are important in their day-to-day work.
Active Listening: Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
Reading Comprehension: Understanding written sentences and paragraphs in work related documents.
Critical Thinking: Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.
Speaking: Talking to others to convey information effectively.
Writing: Communicating effectively in writing as appropriate for the needs of the audience.
Mathematics: Using mathematics to solve problems.
Types of Tax Preparer
- Income Tax Expert
- Enrolled Agent
- Income Tax Advisor
- Corporate Tax Preparer
- Tax Advisor
Job Demand for Tax Preparers
In the United States, there were 95,900 jobs for Tax Preparer in 2016. New jobs are being produced at a rate of 10.7% which is above the national average. The Bureau of Labor Statistics predicts 10,300 new jobs for Tax Preparer by 2026. There will be an estimated 11,500 positions for Tax Preparer per year.
The states with the most job growth for Tax Preparer are Tennessee, Utah, and Nevada. Watch out if you plan on working in Maine, Missouri, or Wyoming. These states have the worst job growth for this type of profession.
How Much Does a Tax Preparer Make?
The salary for Tax Preparers ranges between about $20,550 and $81,720 a year.
Tax Preparers who work in New York, Massachusetts, or Colorado, make the highest salaries.
How much do Tax Preparers make in each U.S. state?
| State | Annual Mean Salary |
|---|---|
| Alabama | $38,520 |
| Alaska | $55,760 |
| Arizona | $39,270 |
| Arkansas | $36,240 |
| California | $57,040 |
| Colorado | $57,650 |
| Connecticut | $50,810 |
| District of Columbia | $97,070 |
| Florida | $39,020 |
| Georgia | $39,950 |
| Hawaii | $55,990 |
| Idaho | $33,220 |
| Illinois | $30,200 |
| Indiana | $40,780 |
| Iowa | $42,930 |
| Kansas | $37,320 |
| Kentucky | $37,920 |
| Louisiana | $39,590 |
| Maine | $38,270 |
| Maryland | $52,530 |
| Massachusetts | $65,670 |
| Minnesota | $50,440 |
| Mississippi | $28,770 |
| Missouri | $40,480 |
| Montana | $40,170 |
| Nebraska | $37,530 |
| Nevada | $49,030 |
| New Hampshire | $49,090 |
| New Jersey | $51,840 |
| New Mexico | $42,040 |
| New York | $63,440 |
| North Carolina | $45,460 |
| North Dakota | $53,920 |
| Ohio | $47,010 |
| Oklahoma | $42,820 |
| Oregon | $56,960 |
| Pennsylvania | $38,910 |
| Rhode Island | $41,770 |
| South Carolina | $41,000 |
| South Dakota | $42,650 |
| Tennessee | $46,670 |
| Texas | $49,750 |
| Utah | $46,470 |
| Vermont | $46,830 |
| Virginia | $34,090 |
| Washington | $38,130 |
| West Virginia | $30,910 |
| Wisconsin | $45,840 |
| Wyoming | $29,160 |
What Tools & Technology do Tax Preparers Use?
Although they’re not necessarily needed for all jobs, the following technologies are used by many Tax Preparers:
- Microsoft Excel
- Microsoft Word
- Microsoft Office
- Microsoft Outlook
- Microsoft Access
- Email software
- Intuit QuickBooks
- Microsoft Internet Explorer
- Sage 50 Accounting
- Tax software
- Intuit Quicken
- ATX Total Accounting Office
- Web page creation and editing software
- Laserfiche Avante
- Universal Tax Systems TaxWise
- Intuit ProSeries
- CCH ProSystem fx TAX
- ATX Total Tax Office
- Sync Essentials Trade Accountant
Becoming a Tax Preparer
What education is needed to be a Tax Preparer?
How Long Does it Take to Become a Tax Preparer?
Where do Tax Preparers Work?
Tax Preparers work in the following industries:
Related Careers
Those thinking about becoming a Tax Preparer might also be interested in the following careers:
Those who work as a Tax Preparer sometimes switch careers to one of these choices:
References:
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More about our data sources and methodologies.
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