How to Make Money Preparing Taxes

Every tax payer in the United States needs to file form 1040.

According to Internal Revenue Service statistics, there were more than 130 million tax returns filed in 2002. For an individual looking to make money preparing taxes, this means that in 2002 there were more than 130 million potential customers around the country. Many individuals fear preparing their own income taxes. A small number still do taxes by hand while many hire an accountant or tax preparation service. Many people simply buy software that automatically prepares and files their taxes.

Instructions

1. Learn how to prepare tax returns. Many of the national tax return preparation chains, like HR Block and Jackson Hewitt, offer training classes on preparing income tax returns. Local community colleges and technical schools also often offer this training.

2. Choose whether you want to be self employed or work for a tax preparation service. Every tax preparation service hires temporary employees each year for tax season. If you want to work as an employee for someone else, it is easy to find work in this field. If you want to work for yourself, be prepared to do a lot of marketing to find your own clients.

3. Keep up with the changing tax rules and regulations. If you want your clients to view your services as professional and worthwhile, keep abreast of the constantly changing IRS laws. IRS.gov has great resources for tax preparers. Paid tax preparers should also consider becoming enrolled agents. Enrolled agents are the only federally approved tax representative for the public other than CPAs or attorneys.

Tips & Warnings

• If you're want to own your own business, consider an income tax franchise so that you have instant name recognition with the public.

References

• IRS: "Tax Information for Tax Professionals"
• IRS: "Individual Tax Rates and Shares, 2002"
• IRS: "Enrolled Agent Program"