Career Description of an Income Tax Preparer

In the United States, income tax refers to a percentage of income or money earned from work, interests or benefits that is due to federal, state or local governments annually. Because tax laws change frequently, many Americans rely upon income tax preparers to help file their tax returns.

Function

Using income statements like W-2s and 1099s as well as receipts for expenditures and other information provided by clients, income tax preparers complete the necessary paperwork needed to file taxes for all levels of governments.

Features

Income tax preparers must stay abreast of changes in tax law as mistakes in the returns can cost clients hefty interest charges from the Internal Revenue Service. Tax preparers use computers to assist them with calculations and filing returns. E-filing is now the norm for many individuals, so tax preparers must know the ins and outs of this service.

Time Frame

The work of income tax preparers is largely seasonal in nature with the busiest times occurring from January through April. Some income tax preparers work another job and work on taxes on the side.

Education

Income tax preparers are not accounts and typically don't have degrees in accounting or finance. Instead, most tax preparers take training courses offered through national tax preparing services, community colleges or through local branches of the Internal Revenue Service.

Compensation

In October 2009, the average annual salary of income tax preparers was between $20,347 and $61,423, according to Payscale.com.

References

• U.S. Bureau of Labor Statistics
• Payscale.com
• Career Information

Resources

• IRS Tax Training