What You Need to Know About Tax Preparer
Position Description Prepare tax returns for individuals or small businesses.
Life As a Tax Preparer: What Do They Do?
- Explain federal and state tax laws to individuals and companies.
- Furnish taxpayers with sufficient information and advice to ensure correct tax form completion.
- Calculate form preparation fees according to return complexity and processing time required.
- Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
- Review financial records such as income statements and documentation of expenditures to determine forms needed to prepare tax returns.
- Compute taxes owed or overpaid, using adding machines or personal computers, and complete entries on forms, following tax form instructions and tax tables.
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Tax Preparer Needed Skills
Below is a list of the skills most Tax Preparers say are important on the job.
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 Jobs
- Tax Professional
- Tax Advisor
- Income Tax Preparer
- Tax Consultant
- Tax Manager
Is There Going to be Demand for Tax Preparers?
In 2016, there was an estimated number of 95,900 jobs in the United States for Tax Preparer. 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. The BLS estimates 11,500 yearly job openings in this field.
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.
Salary for a Tax Preparer
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 different U.S. states?
| 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 |
Tools & Technologies Used by Tax Preparers
Below is a list of the types of tools and technologies that Tax Preparers may use on a daily basis:
- 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 kind of Tax Preparer requirements are there?
What work experience do I need to become a Tax Preparer?
Who Employs Tax Preparers?
The table below shows some of the most common industries where those employed in this career field work.
Other Jobs You May be Interested In
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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