Profession · Full profile

Tax Preparer

Tax preparers review financial records, calculate deductions, and file tax returns for clients.

Average salary

$54,920

Salary range

$33,760 – $99,270

Training time

Several weeks

Job market

Faster than average

8/10

Work-life balance

Fair

5/10

Tax preparers examine financial documents like W-2s and 1099s to calculate deductions, credits, and tax liabilities for individuals and small businesses. They interview clients to gather necessary financial details and explain IRS filing rules clearly. Preparers rely on dedicated tax software to submit returns electronically. The work follows a seasonal rhythm, requiring long hours and weekend shifts during the tax filing season, followed by part-time or quiet schedules throughout the remainder of the year.

A workday

A day in the life

What does a workday really look like?

A typical weekday schedule during the regular tax filing season.

9:00 AM
Schedule review
Review the day of appointments and check incoming client document uploads.
10:00 AM
Client intake interview
Interview a taxpayer to collect wage statements, receipts, and deduction records.
11:30 AM
Tax software data entry
Input W-2 and 1099 information into tax software to calculate preliminary refund amounts.
1:00 PM
Lunch break
Midday break away from the computer.
1:30 PM
Small business return preparation
Review expense records and calculate eligible business deductions.
3:00 PM
Filing consultation
Meet with a client to explain tax rules and available filing options.
4:00 PM
Electronic filing and documentation
Transmit completed returns to tax authorities and archive client paperwork.

Task breakdown

An extended shift accommodating clients with evening appointments.

11:00 AM
Status verification
Check electronic filing acceptance statuses and respond to IRS rejection notices.
12:30 PM
Individual client meeting
Review personal financial records and verify child or education tax credits.
2:00 PM
Meal break
Afternoon meal and rest break.
2:30 PM
Complex return calculation
Run calculations in tax software for clients with multiple income sources.
4:00 PM
Walk-in client interviews
Assist walk-in clients with straightforward individual tax return filings.
6:00 PM
Evening client review
Conduct after-work meetings to review final returns and collect signatures.
7:15 PM
Batch transmission
Electronically submit finalized batches of federal and state tax returns.

Salary data

What do you really earn?

Salary by experience, sector and region.

Minimum

$33,760

Average

$54,920

Maximum

$99,270

Salary by region

Region	Min	Avg.	Max
National	$33,760	$54,920	$99,270
California	$38,910	$70,030	$104,000
New York	$39,010	$71,850	$125,070
Texas	$31,110	$47,460	$86,950
New Jersey	$34,250	$43,420	$77,640
North Carolina	$35,480	$48,130	$97,720

Typical benefits

Flexible seasonal schedules

Allows workers to adjust their hours outside of peak filing season.

Paid tax software training

Covers employer-provided instruction on tax programs and filing tools.

Bonuses during tax season

Provides performance or volume incentives during peak filing months.

Option to work from home at some firms

Offers telecommuting flexibility for preparers handling returns electronically.

Pathways

Education pathways

Which paths lead to this profession?

On-the-job training

Several weeks

Employer tax training course

Large tax chains run their own training courses before tax season. New preparers start with simple returns.

Costs: Paid by the employer
Entry requirements: High school diploma or equivalent

Certificate

Several weeks to several months

Tax preparation certificate

Provides formal instruction in individual tax law. The IRS Annual Filing Season Program is a voluntary option for non-credentialed preparers.

Entry requirements: High school diploma or equivalent

Associate degree

2 years full time

Associate degree in accounting

A degree in accounting helps preparers move into bookkeeping or accounting roles.

Costs: About $4,150 a year in average published tuition and fees at a public two-year college (in-district)
Entry requirements: High school diploma or equivalent

Profile

Skills & personality

Is this a good fit for you?

Hard skills

Federal and state individual tax lawUnderstanding rules, deduction limits, and credit requirements for filing returns.
Tax preparation softwareOperating specialized software programs to compute liabilities and file returns.
Reading W-2s, 1099s and other tax formsInterpreting wage statements, independent contractor forms, and financial documents.
Basic bookkeepingReconciling income records and business expense receipts for accurate reporting.
Electronic filing proceduresSubmitting digital tax returns through secure electronic filing networks.

Soft skills

Attention to detailSpotting discrepancies in financial figures and verifying every entered line item.
Client communicationExplaining complex filing choices and tax requirements clearly to taxpayers.
IntegrityHandling confidential financial data honestly while following ethical filing rules.
Time managementManaging high appointment volumes and tight filing deadlines during tax season.

Is this a good fit for you?

✓
MethodicalApproaches every tax return step by step to avoid costly reporting errors.
✓
InquisitiveAsks probing questions during interviews to uncover legitimate credits and deductions.
✓
TrustworthyProtects private personal records and upholds high professional ethics.
✓
Calm under pressureMaintains focus and accuracy during intense seasonal deadlines and heavy workloads.
✓
AdaptableKeeps pace with annual modifications to state and IRS tax regulations.

Market

Job market & outlook

What does the market look like?

Openings per year

9,400

Trend

Growth

+4.7%

AI impact

7/10

Tax software and AI already handle most calculations and simple returns, while complex situations, client advice and representation before the IRS stay human.

Regional demand

New Jersey

Substantial seasonal demand during filing season across suburban and commercial offices.

8/10

New York

High hiring activity in retail tax branches and metropolitan accounting firms.

8/10

California

Steady seasonal demand across retail tax offices and private firms with state licensing mandates.

6/10

North Carolina

Active seasonal hiring across retail tax offices and regional accounting services.

6/10

Texas

Consistent demand for seasonal tax associates and independent bookkeeping practices.

4/10

Growth

Career paths

Where can this profession take you?

Vertical growth

Senior tax preparer
2-4 years
Handles more complicated individual and business tax filings with greater autonomy.
Enrolled agent
3-5 years
Earns IRS credentials permitting taxpayer representation during audits and appeals.
Tax office manager or practice owner
5+ years
Oversees office branch operations, directs staff, or manages an independent tax firm.

Horizontal move

Bookkeeper
Transitions into maintaining day-to-day general ledgers and accounts for businesses.
View Bookkeeper
Tax Examiner
Moves to government agency positions reviewing returns for legal compliance.
Accountant
Takes on comprehensive financial reporting, auditing, and corporate accounting work.
View Accountant

Good to know

Practical info

Working hours: Many tax preparers work seasonally, often with long hours and overtime during tax season, and part time or not at all the rest of the year.
Remote work: Remote work is increasingly possible because returns can be prepared with online software and secure document sharing, though many retail tax offices need in-person staff.
Physical requirements: The work is done in offices or retail tax offices, sitting at a computer with low physical demands.
Typical employers: Retail tax preparation chains, accounting firms, bookkeeping and payroll services, and self-employment.
Professional associations: National Association of Tax Professionals (NATP) and National Association of Enrolled Agents (NAEA).

FAQ

Frequently asked questions

What does a tax preparer do?

A tax preparer interviews clients, examines financial records, and files tax returns with revenue agencies. They review documents such as W-2s, 1099s, and receipts to determine eligible deductions and credits. Using tax software, they calculate total liabilities or refunds due. They also explain tax rules, guide individuals on filing choices, and track updates to IRS regulations.

Do tax preparers need a license?

All paid tax preparers must obtain a Preparer Tax Identification Number from the IRS. Beyond this federal identifier, certain states mandate additional registration or licensing, specifically California, New York, Oregon, and Maryland. Practitioners can also voluntarily pursue Enrolled Agent status through the IRS to earn rights to represent taxpayers before the agency during audits.

Can tax preparers work remotely?

Tax preparers can work from home at some firms thanks to online software and secure document sharing. Many retail tax preparation chains still require staff to meet clients in person at local branch offices. Self-employed preparers and bookkeeping practices often offer virtual appointments, giving workers flexibility to manage returns remotely throughout the tax filing season.

How long does it take to become a tax preparer?

Training can take several weeks through employer courses or up to 2 years full time for an associate degree. Large tax chains run their own training courses lasting several weeks before tax season begins. Alternatively, candidates can complete a tax preparation certificate program over several weeks to several months, or study accounting at a two-year college.

What are the typical working hours for a tax preparer?

Working hours fluctuate seasonally, featuring long hours and overtime during tax season followed by minimal hours the rest of the year. Peak filing months often require evening and weekend hours to accommodate clients outside their workday. Once deadlines pass, many preparers transition to part-time schedules or do not work at all until the next season begins.

What is the job outlook for tax preparers?

Job prospects are favorable, with about 9,400 openings projected each year over the next decade. Overall employment is projected to change by 4.7% across about 95,800 jobs in the United States. Demand continues as individuals and small businesses seek professional assistance to prepare returns, navigate deductions, and comply with evolving IRS rules.

Related professions

In depth

All about tax preparer

The background, context and details.

Daily tasks of tax preparers

Tax preparers spend their days reviewing financial documents, interviewing taxpayers, and submitting official filings. They examine W-2s alongside 1099 forms to uncover applicable deductions or credits. Accuracy matters. Preparers enter verified figures into tax software to calculate whether a client owes money or receives a refund. Beyond typing numbers, they interpret IRS rules for taxpayers seeking clarity on their annual obligations. Every return demands careful attention to detail because errors can trigger agency reviews or delayed refunds.

Seasonal work rhythms and office schedules

Filing season completely transforms the daily routine. Preparers work long days to accommodate client rushes. Between January and April, preparers frequently work long hours including evening and weekend shifts to assist taxpayers who need help outside their normal business schedules. A client consultation might run past 7 p.m. on a weekday evening. In contrast, the rest of the year brings a quiet pace, allowing staff to shift to part-time hours or take time off entirely. Firms often provide flexible seasonal schedules, paid tax software training, and seasonal bonuses during peak filing periods.

Work settings and career advancement

Positions exist across retail tax preparation chains, private accounting firms, bookkeeping services, and independent practices. Sitting at a desk with a computer involves minimal physical strain. Career advancement opens up once preparers build practical experience over multiple filing seasons. Experienced staff can advance to senior preparer positions or become tax office managers. Workers who study for the special exam can earn Enrolled Agent status from the IRS, granting them the legal right to represent clients directly before the agency during audits.

Technology and changing tax duties

Modern tax preparation software and artificial intelligence handle standard math and simple individual returns automatically. Routine data processing moves fast. However, complex personal situations and client representation before the IRS stay human. Preparers provide personal insight and reassurance that automated software cannot replicate.

Getting started in tax preparation

Entering the field does not require a college degree. Most professionals enter through:

Employer tax training courses lasting several weeks
Tax preparation certificate programs
The voluntary IRS Annual Filing Season Program
An associate degree in accounting taking 2 years full time

All paid practitioners must obtain an official Preparer Tax Identification Number from the IRS before completing state or federal returns for any paying clients.