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.

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.

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

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