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Tax Preparers

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What Do Tax Preparers Do?

Job Description: Prepare tax returns for individuals or small businesses.

List of Tax Preparer Job Duties

  • Furnish taxpayers with sufficient information and advice to ensure correct tax form completion.
  • Consult tax law handbooks or bulletins to determine procedures for preparation of atypical returns.
  • 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.
  • Explain federal and state tax laws to individuals and companies.
  • Interview clients to obtain additional information on taxable income and deductible expenses and allowances.

What a Tax Preparer Should Know

Below is a list of the skills most Tax Preparers say are important on the job.

Reading Comprehension: Understanding written sentences and paragraphs in work related documents.

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.

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.

Complex Problem Solving: Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.

Types of Tax Preparers

  • Corporate Tax Preparer
  • Tax Consultant
  • Tax Professional
  • Tax Specialist
  • Tax Manager

Is There Going to be Demand for Tax Preparers?

In the United States, there were 95,900 jobs for Tax Preparers in 2016.

New jobs are being produced at a rate of 10.8% which is lower than average. The Bureau of Labor Statistics predicts 10,300 new jobs for Tax Preparers by 2026. The BLS estimates 11,500 yearly job openings in this field per year.

Forecasted Number of Jobs for Tax Preparers in U.S.

The states with the most job growth for Tax Preparers are Texas, California, and Florida.

Watch out if you plan on working in Missouri, Maine, or Wyoming. These states have the worst job growth for this type of profession.

Tax Preparer Average Salary

Tax Preparers Make between $20,550 and $81,720 a year. The median salary for this occupation is $39,390.

Salary Ranges for Tax Preparers

How much do Tax Preparers make in each U.S. state?

Annual Mean Salary by State
State Annual Mean Salary

District of Columbia

$97,070

Massachusetts

$65,670

New York

$63,440

Colorado

$57,650

California

$57,040

Oregon

$56,960

Hawaii

$55,990

Alaska

$55,760

North Dakota

$53,920

Maryland

$52,530

New Jersey

$51,840

Connecticut

$50,810

Minnesota

$50,440

Texas

$49,750

New Hampshire

$49,090

Nevada

$49,030

Ohio

$47,010

Vermont

$46,830

Tennessee

$46,670

Utah

$46,470

Wisconsin

$45,840

North Carolina

$45,460

Iowa

$42,930

Oklahoma

$42,820

South Dakota

$42,650

New Mexico

$42,040

Rhode Island

$41,770

South Carolina

$41,000

Indiana

$40,780

Missouri

$40,480

Montana

$40,170

Georgia

$39,950

Louisiana

$39,590

Arizona

$39,270

Florida

$39,020

Pennsylvania

$38,910

Alabama

$38,520

Maine

$38,270

Washington

$38,130

Kentucky

$37,920

Nebraska

$37,530

Kansas

$37,320

Arkansas

$36,240

Virginia

$34,090

Idaho

$33,220

West Virginia

$30,910

Illinois

$30,200

Wyoming

$29,160

Mississippi

$28,770

What Tools do Tax Preparers Use?

Below is a list of the types of tools and technologies that Tax Preparers may use on a daily basis:

  • Microsoft Excel
  • Tax software
  • Microsoft Access
  • Microsoft Outlook
  • Microsoft Word
  • Microsoft Office
  • Intuit QuickBooks

Where Tax Preparers Work

Tax Preparer Sectors

You May Also Be Interested In…

Those thinking about becoming Tax Preparers might also be interested in the following careers:

  • License Clerks

Are you already one of the many Tax Preparers in the United States? If you’re thinking about changing careers, these fields are worth exploring:

  • Paralegals and Legal Assistants

References

Bureau of Labor Statistics

College Factual

O*NET Online

Image Credit: Via Wikimedia Commons

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