Life As a Tax Preparer
Position Description Prepare tax returns for individuals or small businesses.
What Do Tax Preparers Do On a Daily Basis?
- Consult tax law handbooks or bulletins to determine procedures for preparation of atypical returns.
- Compute taxes owed or overpaid, using adding machines or personal computers, and complete entries on forms, following tax form instructions and tax tables.
- Use all appropriate adjustments, deductions, and credits to keep clients’ taxes to a minimum.
- Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
- Furnish taxpayers with sufficient information and advice to ensure correct tax form completion.
- Interview clients to obtain additional information on taxable income and deductible expenses and allowances.
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What Skills Do You Need to Work as a Tax Preparer?
These are the skills Tax Preparers say are the most useful in their careers:
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.
Related Job Titles for this Occupation:
- Tax Consultant
- Income Tax Consultant
- Tax Manager
- Certified Income Tax Preparer (CTP)
- Tax Associate
Is There 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. Due to new job openings and attrition, there will be an average of 11,500 job openings in this field each 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.
Average Tax Preparers Salary
Tax Preparers make between $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 |
What Tools 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
How to Become a Tax Preparer
What education is needed to be a Tax Preparer?
What work experience do I need to become a Tax Preparer?
Where do Tax Preparers Work?
Below are examples of industries where Tax Preparers work:
Related Careers
Those interested in being a Tax Preparer may also be interested in:
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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