What You Need to Know About Tax Preparer
Job Description & Duties Prepare tax returns for individuals or small businesses.
Life As a Tax Preparer
- 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.
- 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.
- Answer questions and provide future tax planning to clients.
- Review financial records such as income statements and documentation of expenditures to determine forms needed to prepare tax returns.
Tax Preparer Skills
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
- Tax Evaluator
- Tax Consultant
- Enrolled Agent
- Tax Professional
- Income Tax Consultant
Is There Going to be Demand 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.
Tax Preparer Salary
The salary for Tax Preparers ranges between about $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 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 do I Become a Tax Preparer?
What education or degrees do I need to become a Tax Preparer?
What work experience do I need to become a Tax Preparer?
Who Employs Tax Preparers?
The table below shows the approximate number of Tax Preparers employed by various industries.
You May Also Be Interested In…
Those interested in being a Tax Preparer may also be interested in:
Are you already one of the many Tax Preparer in the United States? If you’re thinking about changing careers, these fields are worth exploring:
References:
Image Credit: Pixabay via CC0 License
More about our data sources and methodologies.
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