What Do Tax Preparer Do?
Tax Preparer Definition Prepare tax returns for individuals or small businesses.
Tax Preparer Responsibilities
- Calculate form preparation fees according to return complexity and processing time required.
- Review financial records such as income statements and documentation of expenditures to determine forms needed to prepare tax returns.
- Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
- Consult tax law handbooks or bulletins to determine procedures for preparation of atypical returns.
- Prepare or assist in preparing simple to complex tax returns for individuals or small businesses.
- Interview clients to obtain additional information on taxable income and deductible expenses and allowances.
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Skills Needed to be a Tax Preparer
These are the skills Tax Preparers say are the most useful in their careers:
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.
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:
- Income Tax Advisor
- Licensed Tax Consultant
- Income Tax Consultant
- Certified Income Tax Preparer (CTP)
- Master Tax Advisor
Are There Job Opportunities for Tax Preparers?
There were about 95,900 jobs for Tax Preparer in 2016 (in the United States). 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.
Do Tax Preparers Make A Lot Of Money?
The average yearly salary of a Tax Preparer ranges 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 |
What Tools & Technology 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
- ATX Total Tax Office
- CCH ProSystem fx TAX
- Intuit ProSeries
- Universal Tax Systems TaxWise
- Sync Essentials Trade Accountant
- Laserfiche Avante
How do I Become a Tax Preparer?
Are there Tax Preparers education requirements?
How many years of work experience do I need?
Where Tax Preparers Are Employed
The table below shows the approximate number of Tax Preparers employed by various industries.
Other Jobs You May be Interested In
Those thinking about becoming a Tax Preparer might also be interested in the following careers:
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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