Tax Preparers
Overview
Tax preparers help individuals and small businesses file their tax returns accurately and legally. They interview clients to gather financial information, use specialized tax software to calculate what people owe or should get back as refunds, and find all the deductions and credits to minimize their clients' tax burden. These professionals need strong math skills, attention to detail, and knowledge of constantly changing tax laws, often working in accounting firms, tax preparation chains, or as freelancers during the busy tax season.
Did you know?
Tax specialists experience intense workloads during tax season (January-April) followed by slower periods, requiring effective time management and financial planning.
At a Glance
Median Wage
$49,541.60 Avg/yr
Growth
Fast Growing
Top Skill
Repairing
Key Responsibilities
- Prepare or assist in preparing simple to complex tax returns for individuals or small businesses.
- 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.
- Interview clients to obtain additional information on taxable income and deductible expenses and allowances.
- 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.
- Use all appropriate adjustments, deductions, and credits to keep clients' taxes to a minimum.
- Schedule appointments with clients.
- Calculate form preparation fees according to return complexity and processing time required.
- Explain federal and state tax laws to individuals and companies.
- Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
- Compute taxes owed or overpaid, using adding machines or personal computers, and complete entries on forms, following tax form instructions and tax tables.
Career Considerations
Seasonal Workload Fluctuations
Tax specialists experience intense workloads during tax season (January-April) followed by slower periods, requiring effective time management and financial planning.
Continuous Professional Education
The constantly evolving U.S. tax code requires ongoing education and training to stay current with federal, state, and local tax law changes.
Professional Certification Requirements
Career advancement often depends on obtaining certifications such as CPA, Enrolled Agent (EA), or other specialized tax credentials recognized by the IRS.