Tax preparers undergo specialized training to assist people in filing their yearly income taxes. Tax preparation classes can lead to self-employment, or employment through a tax service agency. Most tax preparers work seasonally, with the majority of their hours concentrated in the months of January through March. According to the Bureau of Labor Statistics, the median hourly wage nationwide for tax preparers is $14.45 as of 2009, and the median annual salary is $30,060, for tax preparers who are employed full-time year-round. However, many tax preparers work only during tax season, so many will not see an annual salary at this level.
Many tax preparers work in tax service franchises, such as H&R Block, Liberty Tax Service, or Jackson Hewitt. Others work in the financial or bookkeeping departments of large companies, such as insurance companies or legal services. According to 2009 Bureau of Labor Statistics data, the insurance industry offers the highest pay for tax preparers, with a mean hourly wage of $29.85.
Tax Preparation: Pros and Cons
Flexible scheduling is a primary benefit to working in tax preparation. Evening and weekend hours are easily available, and this appeals to stay-at-home parents, retired seniors, and college students. Learning to prepare taxes is an ideal starting point for a college student who is training to become a certified public accountant (CPA). Working as a tax preparer gives college students the hands-on experience necessary to decide if accounting is the appropriate career.
For some workers, the seasonality of tax preparation jobs is a disadvantage. Tax preparers who prefer year-round employment can work as bookkeepers in financial departments. Full-time positions in tax preparation can be difficult to obtain, due to increased competition.
Background Requirements for Tax Preparation
A college degree is not required to work as a tax preparer. Most tax preparation businesses require prospective employees to take a comprehensive tax preparation class and complete testing to ensure competency prior to being hired. These courses are often available at tax preparation agencies during the months before tax season begins.
Tax Preparation Class Offerings
Most of the popular tax service chains offer classes for prospective employees. H&R Block offers in-person tax preparation classes nationwide, available at varying times of day and taking a total of 84 hours to complete. The class series matriculates into 4 credit hours toward a college degree, if a tax preparer enrolls with the University of Phoenix.
Jackson Hewitt's tax preparation classes are offered online, and these classes also can be applied toward college credit with the University of Phoenix.
Liberty Tax Service offers both online and classroom tax preparation training. All three tax businesses state a disclaimer that students who take the class are not guaranteed employment afterward.
Continuing Education for Tax Preparers
The Internal Revenue Service (IRS) has implemented changes to reduce tax preparation errors caused by inexperienced preparers. According to Elaine Morris Roberts in a January 5, 2010 Springfield News-Sun article entitled, "IRS to institute certification program for tax preparers," “anyone who receives money to prepare a tax return will be required to receive a federal preparer tax identification number issued by the IRS.” The IRS also plans to identify and educate preparers with a history of faulty returns.
The three major tax preparation chains offer advanced tax preparation courses for individuals already working in the business. These educate tax preparers for completing more complicated tax returns. According to H&R Block, advanced tax training enables tax preparers to earn a higher income, due in part to increased bonuses.
For more information about preparing taxes, visit the tax professional area of the IRS website.
Kay Majors - Kay graduated college with a bachelor of science degree in nursing. She has experience in the areas of women's health, newborn care, and ...
