Life As a Tax Preparer
Position Description Prepare tax returns for individuals or small businesses.
What Do Tax Preparers Do On a Daily Basis?
- Prepare or assist in preparing simple to complex tax returns for individuals or small businesses.
- Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
- Use all appropriate adjustments, deductions, and credits to keep clients’ taxes to a minimum.
- Calculate form preparation fees according to return complexity and processing time required.
- Explain federal and state tax laws to individuals and companies.
- Answer questions and provide future tax planning to clients.
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What a Tax Preparer Should Know
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.
Related Job Titles for this Occupation:
- Tax Consultant
- Tax Evaluator
- Master Tax Advisor
- Income Tax Advisor
- Tax Professional
Is There Job 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.
Average Tax Preparers Salary
The typical yearly salary for Tax Preparers is somewhere between $20,550 and $81,720.
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 |
Tools & Technologies Used by Tax Preparers
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
Learn what Tax Preparer education requirements there are.
How Long Does it Take to Become a Tax Preparer?
Where Tax Preparers Work
Tax Preparers work in the following industries:
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References:
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More about our data sources and methodologies.
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