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.

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.

Are you looking to become a tax preparer in California? Let National Tax Training School help you. Consider our California Tax Preparer Course.

Tax preparers in the state of California are required to be registered with the state. National Tax Training School is approved by the California Tax Education Council (CTEC) as a provider for the required Qualifying and Continuing Education.

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:

• Your name and mailing address.
• Business name and mailing address
• Credit card or debit card to pay for the PTIN fee of $50
• Noncompliance with tax laws in the past or felony convictions may affect your ability to get a PTIN so have explanations available if this applies.
• If applicable (it is not a requirement), your professional credentials.

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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Distinguish yourself from the rest. Stand out. Earn a credential or designation that attests to your competency as a professional tax preparer. Consider the National Tax Training School’s AFSP.

What is the Annual Filing Season Program – AFSP? Let’s see what the IRS has to say,

“Return preparers who complete the requirements for the Annual Filing Season Program will be issued a Record of Completion that they can display and use to differentiate themselves in the marketplace if desired.”

Not only do you differentiate yourself with a “Record of Completion,” there is another benefit too…

“Preparers who complete the AFSP will also be included in a new public database that will be added to IRS.gov by January 2015 for taxpayers to use in searching for qualified tax return preparers.”

You even get recognition on the IRS.gov website.

So get started with the National Tax AFSP distance learning/online program that will give you all you need to earn this coveted IRS Annual Filing Season Program – AFSP “Record of Completion.”

Attention CA Tax Preparers!

Don’t forget to fulfill your CTEC continuing education requirements.

National Tax is proud to announce that our California CTEC CPE courses have been fully revised for 2015 and are now available. These self-study courses are available at a very attractive price and are available in print or online versions. Study and complete the requirements on your own time.

Tax preparers in the state of California are required to be registered with the state.

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

The 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:

• Use Form 4868. You can request an extension by filling out Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You must mail this form to the IRS by April 15. Form 4868 is available on IRS.gov/forms at any time.
• More time to file is not more time to pay. An extension to file will give you until Oct. 15 to file your taxes. It does not give you more time to pay your taxes. You still must estimate and pay what you owe by April 15 to avoid a late filing penalty. You will be charged interest on any tax that you do not pay on time. You may also owe a penalty if you pay your tax late.
• Use IRS Direct Pay.  The safe, fast and easy way to pay your tax is with IRS Direct Pay. Visit IRS.gov/directpay to use this free and secure way to pay from your checking or savings account. You also have other electronic payment options. The IRS will automatically process your extension when you pay electronically. You can pay online or by phone.
• IRS helps if you can’t pay all you owe.  If you can’t pay all the tax you owe, the IRS offers you payment options. In most cases, you can apply for an installment agreement with the Online Payment Agreement tool on IRS.gov. You may also file Form 9465, Installment Agreement Request. If you can’t make payments because of a financial hardship, the IRS will work with you.

April 1 Deadline to Take Required Retirement 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 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:

• Maximum Credit.  For tax years beginning in 2014 and after, the maximum credit is 50 percent of premiums paid by small business employers. The limit is 35 percent of premiums paid by tax-exempt small employers, such as charities.
• Number of Employees.  You may qualify if you had fewer than 25 employees who work full-time, or a combination of full-time and part-time. For example, two half-time employees equal one full-time employee for purposes of the credit.
• Qualified Health Plan.  You must have paid premiums for your employees enrolled in a qualified health plan offered through a Small Business Health Options Program, or SHOP, Marketplace. There are limited exceptions to this requirement.
• Average Annual Wages.  To qualify for the credit, the average annual wages of your full-time equivalent employees must have been less than $51,000 in 2014. The IRS will adjust this amount for inflation each year.
• Half the Premiums.  You must have paid a uniform percentage of the cost of premiums for all employees. The amount you paid must be equal to at least 50 percent of the premium cost of the insurance coverage for each employee.
• Two Year Limit.  An eligible employer may claim the credit for any two-consecutive taxable years, beginning in or after 2014. This credit can be claimed for two consecutive years, even if you claimed the credit at any point from 2010 through 2013.
• Tax Forms to Use.  All employers use the Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit. For-profit businesses claim the credit on Form 3800, General Business Credit. Tax-exempt organizations claim it on Form 990-T, Exempt Organization Business Income Tax Return.

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.