Becoming a tax preparer is a great way to begin a new career or supplement your income since the work is generally seasonal.
Tax preparers assist individuals or businesses with preparing tax returns, tax preparers need to understand accounting procedures, complicated instructions and be precise. Tax preparers examine financial records, such as previous tax returns, earning reports, and documentation of expenditures to determine what forms will be required to prepare current returns. They also consult with the client to obtain additional information on taxable revenue, expenses and allowances. They calculate taxes owed and complete tax forms according to tax tables. For typical returns, preparers refer to tax law handbooks to determine applicable procedures.
Generally, tax preparers need to be certified before becoming employed in this field. This career provides job stability, attractive earnings potential, flexible hours, and has minimal entry requirements. In today's economy this training is ideal for anyone especially for the unemployed or unskilled worker.
There are also numerous websites that provide courses online to become a certified tax preparer. Careers in tax preparation use to require an accounting degree however, many found this degree was too time consuming, and costly to consider. Now there are training programs offering courses to teach people skills needed in tax preparation. The required training is short lasting about 10 weeks Most courses have day and night classes that meet only 3 times a week offering flexible schedules for students, stay at home parents and currently employed workers.
Once you become certified you can be self-employed or find work with an accounting firm or tax service agency. Tax preparation has high earnings potential especially during the season, which is from January through April. The fees charged for tax preparation depend on the complexity of the tax return and amount of time needed to prepare the forms. Sole practitioners charge up to $100 an hour plus more for consultations and additional fees for each type of return they prepare. Those who work for a company or agency may earn $10 to $12 per hour. More experienced workers can earn $20 per hour or more. Top pay can exceed $50 per hour. Entry-level tax preparers may earn from approximately $30,000 to $40,000+ as sole practitioners.