Do you want to pursue a career in tax preparation? Here is how you can go about it! Let’s get you started on this and walk you through the important points of becoming one. So, let’s get started.
Who is a tax preparer?
If you want to become a tax preparer, you should know that they work as your financial navigator during the “tax season.” They are professionals ranging generally from CPAs and attorneys to enrolled agents who are hired to calculate, file, and sign off on income tax returns. They handle things professionally, leaving no or very little for the taxpayer to worry about. While anyone can technically be a preparer, given that they have an IRS Preparer Tax Identification Number, their depth of expertise varies and doesn’t really matter if you have chosen them well. Depending on their expertise, they handle different things. Their primary task is shifting tax laws off your list, ensuring you don’t have to worry about managing your taxes or file for a return or amend if you are eligible.
All you need to know about becoming a tax preparer.
If you want to become a tax preparer, here is all you need to know about it.
Get your PTIN
First things first! So, for starters, you need a Preparer Tax Identification Number, also known as the PTIN, from the IRS. It’s a quick online registration and is legally required if you plan to pursue a career in this direction.
Take a Tax Course
This is necessary to prepare you for the role. So, get signed up for a comprehensive tax preparation course. Big firms like H&R Block or Jackson Hewitt offer these options, but community colleges and online platforms work well as well. And to understand what you need to know better, you need to know the difference between a standard deduction and a tax credit, along with all the basic things.
Register with the State
Depending on where you live, you might need an additional state license or specific bonded insurance, which is the legal prerequisite before you start the practice. Check your local requirements to do it well and avoid any legal trouble.
Learn the Software
Since things have gone digital, it would be amazing if you try to get comfortable with the software and then the technical stuff. Get comfortable with professional software like Drake, ProSeries, or TaxSlayer that you may be using for the purpose.
The “Pro” Levels
This is optional and is not a mandatory requirement. If you want to represent clients in audits, you can also look into becoming an Enrolled Agent (EA) or a CPA.
And that is all you need to know to become a tax preparer!
