There are a number of individuals and small business that require good help in filing tax returns. Tax preparers are the professionals who carry out the task of preparing and filing taxes. Tax preparers have the ability of preparing tax forms of different complexities ranging from the simple ones to the ones which are extremely complicated. They even review the jobs of other tax preparers for ensuring accuracy. These professionals work with the goal of making sure that their client pays minimal tax and receives largest tax returns possible and wherever applicable. People who look forward to working as tax preparers need to be current in regards to changes in tax code and available benefits and deductions. They also need to be familiar with financial software, tax codes and laws. Most importantly, they should possess a high school diploma.
How much does a Tax Preparer Make?
A tax preparer usually earns wages ranging from 24000 to 36000 depending on the tenure levels. These professionals are likely to earn a compensation of around $37000 on an annual basis. Tax preparers can look forward to providing their services in Massachusetts where they can earn an average of about $60440. The professionals working in the field of tax preparation are highly compensated in Insurance and Finance. In this field, they get a salary of about $48940. Tax preparers make the most in the industries that have been mentioned below:
• Social Assistance and Health Care: $40,290
• Management of Enterprises and Companies: $48,940
• Technical, Professional and Scientific Services: $36,930
• Insurance and Finance: $46,400
• Waste Management, Support and Administrative Services: $33,430
Factors Affecting the Salary of a Tax Preparer
There are a number of factors affecting the earning potential of a tax preparer and the factors have been detailed below:
This is the first and the most important factor affecting the wages of a tax preparer. As a tax preparer, your wages will be dependent on how busy your work location is during the tax season. You have the probability of making very less money if you work in a certain tax office possessing not more than 200 clients. The situation would be opposite for you if you are working in an office with more than 2000 clients. Even if you are self-employed, the size of the client-base is something that affects your earnings as a tax preparer.
The pay structure that is being offered by the employer is another factor affecting your earnings. Do you get your payments on commission or hourly basis or the combination of both? Tax preparers who are new to this profession are generally paid very low hourly rates. however, there are companies that provide performance bonuses and commissions as well. However, once you gain good experience in this field, you will be earning more as commissions on an hourly basis.
Special Attributes and Qualifications
Apart from the major qualifications required for becoming a tax preparer, if you possess some special attributes and qualifications, you have increased chances of earning more as wages.