Rather than filling out their taxes themselves, 90% of U.S. taxpayers hire a tax preparer or use software to complete their taxes. With various forms and changes due to COVID, taxpayers feel taxes are too confusing and time-consuming to do on their own.
With many people needing help to prepare their taxes, there is an opportunity to get into the tax preparation field. You can learn everything you need to know by taking a tax prep class. Becoming a certified tax preparer will help you handle your taxes or start a business.
Read on to learn what a tax prep course covers and how you can turn it into a career.
Tax Preparer Requirements
Tax preparers help individuals fill out and file their tax forms. They can also represent their clients in cases of audits or tax court. Their job is to accurately comply with all tax laws while getting the best result for their client.
Some states require you to have a license to prepare tax returns, but tax preparers aren’t required to have a specific license in most places. But to do representative work, you will need to be a licensed CPA or enrolled agent.
Unlike CPAs, a high school diploma is the only educational requirement to become a tax preparer. But you do have to pass an IRS suitability check, so you will need to know tax forms and laws. If you want to get paid to prepare tax returns, you will also need to apply for a Preparer Tax Identification Number from the IRS.
Preparing Different Types of Tax Returns
Tax prep courses cover the basics of taxes so you can determine different types of incomes and filling status. You will also learn how to apply adjustments, credits, and deductions. These are essential to help determine the best return for clients.
Once you enroll in the program, you will also learn about tax forms and schedules to choose the correct documents to fill out for your clients. Tax prep courses often focus on the 1040 tax return form since they are the most common ones individuals use to file.
You will also learn about various business forms that are less common but necessary for clients who own their businesses or work as independent contractors. Knowing these forms will help you fill out compliant tax forms for your clients.
Running a Tax Prep Business
The biggest challenge when starting your business is finding clients and managing your time. Tax prep courses often take time to teach you strategies to overcome these challenges. They can guide you on how to start and grow your business effectively.
Getting a Certification
After completing a tax prep course, you can tax the professional tax preparer exam. A tax preparation certificate acknowledges that you have been trained to prepare tax returns accurately. A certification can help you build trust with new clients and boost your job prospects and salary.
Enroll in a Tax Prep Class to Jumpstart Your Career
Although there are few requirements to become a tax preparer, you must have the tax knowledge to create accurate and compliant returns for your clients. A tax prep class will cover everything you need to know to serve your clients. As a result, you will be able to file your taxes or start your own business easily.
Do you want to learn more about becoming a tax preparer and running a tax prep business? Check out more articles like this one on our website.
Sudarsan Chakraborty is a professional Blogger and blog writer. He lives and breathes in the blogging industry. He regularly writes on Widetopics to keep all the readers updated with the latest facts on wide range of topics.