tax preparation a successful career

Why Become a Tax Preparer?

Many students enter adulthood without the slightest clue of what they want to do with their professional lives. Some harbor dreams of grandeur while others prefer fortune to fame. However, a more practical approach to planning one’s career can ensure much greater job satisfaction.

When choosing a career path, you need to consider two things: what you’re good at and what you enjoy. The so-called “dream job” is a myth, or at least, it’s different for every person. We might all enjoy the accolades and earnings of a top-notch actor, but how many of us are really suited to perform on command? Some might find such work extremely stressful and terribly unfulfilling.

If you’re looking for a profession that features stability, flexibility, and high earning potential, there are several reasons to consider becoming a tax preparer, especially if you’re proficient in math, you exhibit organization and attention to detail, and you enjoy working with clients and helping them save money. Here are some of the many benefits you stand to gain in the process.

1 – Gainful Employment

Money may or may not make the world go ’round, but it certainly can keep us comfortable, ensuring a roof over our heads and food on the table. Tax preparation can provide you with gainful employment for the rest of your life.

People are always going to need help with their taxes. Most of us simply don’t have the time, energy, or inclination to learn how to prepare our own income tax returns, especially since tax codes change frequently.

For this reason, reputable and reliable tax preparers are always in high demand. Naturally, you’re bound to be much busier at certain times of year, as when annual income tax returns are due in April, but you can also find ways to sustain your workload throughout the year by working for businesses, keeping books and filing quarterly estimated taxes, for example.

2 – Job Security

If the recent recession taught us nothing else, we learned the value of a stable profession. Not every job can offer security, but tax preparation is something nearly everyone needs help with at some point, which means tax prep professionals will always be in high demand.

Taxes are confusing, and most people have better things to do with their time than learn the ins and outs. They’re happy to leave it to professionals like you, especially since you have the knowledge to help them find ways to reduce what they owe and even get money back in some cases.

3 – Flexible Work Options

This is one major boon associated with becoming a tax preparer. You have so many options when it comes to your schedule. For example, you could end up working full time for a tax prep company, or alternately, simply working for yourself from home.

You could take on clients just during the busiest tax season, or maintain business contracts year-round, and you have the option to decide how many clients you want to serve. You could work full-time, part-time, seasonally, or to supplement another profession.

Tax preparers often enjoy the ability to manage their own schedules. Whether you prefer working days, evenings, or weekends, you can set appointments with clients on a schedule that works for you, allowing you to accommodate other work, schooling, or familial obligations, just for example. How many other high-paying jobs can you say that about?

4 – You Can Learn Remotely

Earning your certificate in tax preparation is as easy as taking online tax courses through a licensed and accredited tax school that offers clear and comprehensive course work, as well as skilled instructors and support staff. This is an ideal learning environment that gives you a measure of control over your learning schedule and allows you to avoid a costly and time consuming commute.

If you’re already tied to another job, you’re raising a family, or you’re simply looking for a convenient and flexible educational opportunity, the option to study and earn your certificate in tax preparation from home or on the go is a fairly attractive proposition.

5 – Earn a Certificate Quickly and Get to Work

When you take online tax preparer courses, you could earn your certificate in as little as 8-10 weeks, depending on how committed you are to the process. This means you could get to work and begin earning a living and building your professional reputation in just a couple of months.

You don’t need any previous experience to begin online tax courses, although many people working as bookkeepers, accountants, and lawyers are keen to earn tax prep certification. All you have to do is sign up, complete your coursework, and earn your certificate in a few short weeks.

6 – Lifelong Knowledge and Skills

You might find that you really enjoy tax preparation and make it your lifelong profession. Or you might see it as a stepping stone in your career trajectory. You may do it for a while and move on to other pursuits.

However, the knowledge and skills you develop will stick with you for the rest of your life. You might only use them when properly preparing your own tax filings or helping out family members and friends, or they may serve you well in all of your professional pursuits.

Many businesses see this type of knowledge and experience as a major bonus and it could give you the edge when applying for future positions, even those unrelated to tax preparation. Basic accounting and tax preparation skills are something everyone should have, but few people bother to learn, which will make you a valuable asset to any employer.

7 – Personal Fulfillment

Most adults place a premium on earnings over job satisfaction. What you’ll come to realize with time is that money isn’t everything. If you spend enough time working you’ll find that gaining a sense of satisfaction from your job is worth its weight in gold, so to speak.

When you make all the numbers match up or find a way to help clients save money or see a larger tax refund, you’re going to gain a sense of personal fulfillment that you might not get from other jobs. This is a welcome addition to whatever money you earn in the course of your professional pursuits.

Tax Preparers

The hallmark of reaching adulthood is understanding that you are not only capable of caring for yourself and others, but that it is your responsibility to do so. As an adult, you will very likely have to earn your way, at least if you want a roof over your head, food on your table, and some fun money on the side.

As a kid, you might dream of exciting jobs like acting or flying airplanes, but the chances of landing such jobs and actually making a decent living are pretty slim. You’re better off selecting a career based on your strengths and what you enjoy.

Some people are good with numbers. Some are organized and detail oriented. Some work well with people. If you exhibit any, or preferably all of these traits, you may have the makings of a tax preparer. This is an especially good choice for those uninterested in spending years toiling in school to earn an accounting degree and take a CPA exam.

Why would you want to consider such a career, aside from the ability to work from home, run your own business, set your own hours, and earn a living? There are many situations in which becoming a tax preparer could fit nicely into your current lifestyle. Here are just a few types of individuals for whom a career as a tax preparer could be the perfect fit.

Stay-at-Home Parents

More and more families are finding that two incomes are necessary to support a modern household. In many cases, one parent elects to stay home and raise children, either because both agree that it’s better than childcare or because childcare is too expensive and the parent who earns a secondary income is spending it all on daycare costs.

That said, a secondary income might still be necessary to make ends meet. This is where working as a tax preparer could prove to be the perfect solution.

For starters, there are online courses available through licensed and accredited schools, allowing stay-at-home parents to earn certification in as little as 8-10 weeks. This certification allows parents to work from home, bring in a secondary income, and help family, friends, and those within the community to prepare annual or quarterly tax filings. Plus, kids can grow up under the supervision of a caring and devoted stay-at-home parent.

Home-Based Workers

There are many reasons why workers might prefer a home-based profession. There are, for example, those who are unable to commute to an office environment due to disability, or for whom working in a traditional office setting would impose hardship.

However, it’s much more likely that you’re interested in work opportunities that don’t require you to wear a suit, sit in traffic for hours each day, and labor under the micromanagement of half a dozen superiors. In other words, you want to work for yourself, from the comfort and convenience of your own home.

Becoming a tax preparer is an ideal profession to consider. Once you’ve completed appropriate tax courses remotely and earned your certificate, you can begin to build a network of clients, starting with family members, friends, neighbors, and other acquaintances.

You can determine how many clients to work with, how much to charge, and when to work, although naturally you want to build a big enough clientele to earn a living. Whether you simply work during the busiest tax preparation season or you work year-round helping clients stay on top of bookkeeping and quarterly filings, you have the opportunity to determine the work/life balance that suits you best.

Accounting Students

Perhaps it is your goal to become a CPA, whether you intend to work in a firm or eventually run your own business. During your time in school, there’s no reason not to put your skills and education to good use and earn a little money to reduce your student debt in the meantime.

You can take an online course over your summer break in order to become certified, allowing you the opportunity to work as needed to supplement student loans or even begin to pay them down. Tax preparation doesn’t have to be a full-time job – you can do it part-time while you’re in school by taking on just a few clients.

This is also great experience to add to your resume. It will not only help to prepare you for eventually becoming a full-fledged accountant, but it could help you to get a foot in the door when you finish school and start your career. Of course, you might just decide that the perks of being your own boss make you want to stick with tax preparation.

Professionals Seeking Seasonal Work

There are plenty of people interested in supplementing their income after the New Year in order to pay down debt accumulated during the busy holiday season. This would be a great time to use your certification in tax preparation to earn a little extra money on the side.

The turning of the calendar year also signals the beginning of tax prep season. As workers get their income tax forms in the mail, starting as early as January, they seek out skilled professionals to help them complete accurate and timely income tax returns so that they can get their refunds post haste.

As a tax preparer, you could probably work year-round, especially if you take on corporate clients that file quarterly estimated taxes. However, you could elect to limit your services to the busiest time of year – the months leading up to April 15 – in order to supplement your income seasonally.

Anyone Looking to Improve Job Prospects

It seems like the tax code becomes more and more incomprehensible each year, at least for the layman. This means that skilled tax preparers will always be in high demand.

If you have a head for numbers, an eye for detail, and a strong desire to improve your job prospects, there’s no reason you shouldn’t consider the benefits of enrolling in courses to become a successful tax professional. With the proper certification course you can quickly gain the knowledge and skill necessary to earn a living helping others prepare their taxes.

Information about PTIN registration from the IRS

 

1) Who needs a PTIN?

 

Anyone who gets paid to prepare (or assists in) preparing federal tax returns must have a current PTIN before preparing tax returns.  Each tax preparer need their own PTIN – it cannot be shared. Enrolled agents must also have a PTIN.

 

2) How do I apply for a PTIN?

 

You can obtain a PTIN online by going to the IRS website: www.irs.gov/PTIN it only takes about 15 minutes to apply  The fee is $50.00.  Generally,  your PTIN will be provided to you immediately once you complete the application and pay the fee.

 

Here is what you should have ready before you apply:

 

 

3) When do I register for a PTIN?

 

A PTIN needs to be renewed every year. They expire by Dec. 31, so renew or register for a PTIN early enough to have a new and valid PTIN before Jan. 1.

 

 

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April 15 Deadline – What to do if you need more time to file your taxes.

IRS April 15 DeadlineThe April 15 tax deadline is coming up. If you need more time to file your taxes, you can get an automatic six month extension from the IRS. Here are a couple of things to know about filing an extension:

April 1 Deadline to Take Required Retirement Plan DistributionsRetirement Plan Distributions

The Internal Revenue Service today reminded taxpayers who turned 70½ during 2014 that in most cases they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Wednesday, April 1, 2015.

The April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457 plans.

The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, a taxpayer who turned 70½ in 2014 and receives the first required payment on April 1, 2015, for example, must still receive the second RMD by Dec. 31, 2015.

Affected taxpayers who turned 70½ during 2014 must figure the RMD for the first year using the life expectancy as of their birthday in 2014 and their account balance on Dec. 31, 2013. The trustee reports the year-end account value to the IRA owner on Form 5498  in Box 5. Worksheets and life expectancy tables for making this computation can be found in the Appendices to Publication 590-B.

Most taxpayers use Table III  (Uniform Lifetime) to figure their RMD. For a taxpayer who reached age 70½ in 2014 and turned 71 before the end of the year, for example, the first required distribution would be based on a distribution period of 26.5 years. A separate table, Table II, applies to a taxpayer married to a spouse who is more than 10 years younger and is the taxpayer’s only beneficiary.

Though the April 1 deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans, some people with workplace plans can wait longer to receive their RMD. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions.

The IRS encourages taxpayers to begin planning now for any distributions required during 2015. An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount in Box 12b on Form 5498. For a 2015 RMD, this amount would be on the 2014 Form 5498 that is normally issued in January 2015.

Employers: Don’t Overlook the Small Business Health Care Tax Credithealth care tax credit

Do you own or run a small business or tax-exempt group with fewer than 25 full-time employees? If you do, you should know that the Small Business Health Care Tax Credit can help you provide insurance to your employees. You may be able to save on your taxes if you paid for at least half of their health insurance premiums. Here are several things that you should know about this important credit:

If you are a for-profit business and the credit is more than your tax liability for the year, you can carry the unused credit back or forward to other tax years. If you are a tax-exempt employer, you may be eligible to receive the credit as a refund. This applies so long as it does not exceed your income tax withholding and Medicare tax liability for the year.

You can learn more about General Business Tax Credits in the Federal Tax Course.

Education Tax CreditsEducation Tax Credits: Two Benefits to Help You Pay for College

Did you pay for college in 2014? If you did it can mean tax savings on your federal tax return. There are two education credits that can help you with the cost of higher education. The credits may reduce the amount of tax you owe on your tax return. Here are some important facts you should know about education tax credits.

American Opportunity Tax Credit:

For both credits:

Education tax credits are covered in the Lesson 18 of the Federal Income Tax Course

Where is my IRS Refund

Checking the status of your IRS Tax Refund

WASHINGTON — The Internal Revenue Service today reminded taxpayers that they can quickly check the status of their tax return and refund through “Where’s My Refund?”

Taxpayers who have not yet received their refunds can use “Where’s My Refund?” on IRS.gov or on the smartphone application IRS2Go 5.0 to find out about the status of their income tax refunds.

Initial information will normally be available within 24 hours after the IRS receives the taxpayer’s e-filed return or four weeks after the taxpayer mails a paper return to the IRS. The system updates only once every 24 hours, usually overnight, so there’s no need to check more often.

“Where’s My Refund? is the quickest and easiest way for taxpayers to get important information about their tax refund,” said IRS Commissioner John Koskinen. “Taxpayers need to remember that the Where’s My Refund system is updated every 24 hours, usually overnight, so there’s no need to check more than once a day.”
So far this year, “Where’s My Refund?” has received more than 179 million hits on IRS.gov.

Taxpayers should have their Social Security number, filing status and exact refund amount when accessing Where’s My Refund?

Other tips in the Tax Time Guide series are available on IRS.gov.

See this AP Press Article:Frustrated with IRS

IRS cuts taxpayer services as filing returns gets harder

By STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — The IRS is cutting taxpayer services to historically low levels just as President Barack Obama’s health law will make filing a federal tax return more complicated for millions of families.

Got a question for IRS? Good luck reaching someone by phone. The tax agency says only half of the 100 million people expected to call this year will be able to reach a person.

Callers who get through may have to wait on hold for 30 minutes or more to talk to a person who will answer only the simplest questions.

“As we enter 2015, we are deeply concerned that taxpayers are receiving markedly less assistance from the IRS now than at any time in recent history,” said a report released Wednesday by agency watchdog Nina E. Olson.

IRS Commissioner John Koskinen says budget cuts are forcing the agency to reduce taxpayer services and other functions. The number of audits will decline, technology upgrades will be delayed and the agency might be forced to shut down and furlough workers for two days later this year, Koskinen said.

“People who file paper tax returns could wait an extra week — or possibly longer — to see their refund,” Koskinen said in an email to IRS employees this week. “We now anticipate an even lower level of telephone service than before, which raises the real possibility that fewer than half of taxpayers trying to call us will actually reach us.”

“Those who do reach us will face extended wait times that are unacceptable to all of us.” Koskinen added.

Congress cut the IRS budget by $346 million for the budget year that ends in September 2015. The $10.9 billion budget is $1.2 billion less than the agency received in 2010.

Republicans in Congress adamantly oppose Obama’s health law, so some have been working to starve the IRS of funds just as its role in implementing the law ramps up.

Olson is the National Taxpayer Advocate, an independent office within the Internal Revenue Service. She released her annual report to Congress Wednesday, less than a week before the start of tax filing season on Tuesday.

She said taxpayers will suffer from service reductions.

“Without adequate support, many taxpayers will be frustrated, some will make potentially costly mistakes, others will incur higher compliance costs when forced to seek information and assistance from tax professionals,” Olson wrote.

“Still others,” Olson said, “will simply give up and not file.”

For the first time, tax filers will have to report information about their health insurance during the previous year. For people who get health coverage through work or government programs like Medicaid, it will mean simply checking a box on their tax return.

Others who got insurance through state and federal marketplaces will have to file a new form, while people who received government subsidies to help pay premiums will have to provide more detailed information.

People who didn’t have health insurance last year face fines unless they qualify for a waiver, which requires more paperwork.

The subsidies were based on projected family incomes, so families will have to check to see if their actual incomes were higher or lower. If their incomes were higher than expected, they might have to pay back some of the subsidy, either through a smaller tax refund or a payment.

If their incomes were lower, they might qualify for a larger subsidy, which would come in the form of a larger tax refund.

irs scam

The Internal Revenue Service issued a consumer alert providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS.
These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request.
“These telephone scams are being seen in every part of the country, and we urge people not to be deceived by these threatening phone calls,” IRS Commissioner John Koskinen said. “We have formal processes in place for people with tax issues. The IRS respects taxpayer rights, and these angry, shake-down calls are not how we do business.”
The IRS reminds people that they can know pretty easily when a supposed IRS caller is a fake. Here are five things the scammers often do but the IRS will not do. Any one of these five things is a tell-tale sign of a scam.

The IRS will never:

  1. Call you about taxes you owe without first mailing you an official notice.
  2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  3. Require you to use a specific payment method for your taxes, such as a prepaid debit card.
  4. Ask for credit or debit card numbers over the phone.
  5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:

Remember, too, the IRS does not use email, text messages or any social media to discuss your personal tax issue. For more information on reporting tax scams, go to www.irs.gov and type “scam” in the search box.