How Much Do Tax Preparers Make

By John C. Crawford October 29, 2021 Blog 0 Comments

Contents

1 Introduction
2 What is a Tax Preparer
- 2.1 The job of Tax Preparer
3 How many studies will you need to become a Tax Preparer
4 How much a tax preparer makes
- 4.1 Salary Table by Experience
5 Adding More degrees to Earn More
6 Earning by Stature
- 6.1 Conclusion

Introduction

Tax preparers are just like any accountants and auditors. They have to be very good with numbers and freak about economics.

Also, a good tax preparer always keeps up with the wind of politics. If you are someone interested in this sector and thinking how much do tax preparers make, we may have some answers.

What is a Tax Preparer

A tax preparer is someone who helps the taxpayers to file tax for their business with maximum return. It can be a single person or a whole company as a tax preparer. Usually, people hire a tax preparer for tax filing season. So, it is a seasonal job as well.

The job of Tax Preparer

A tax preparer has to make the taxpayer’s form complete and file it to IRS. He will read all the client’s necessary documents, like the personal and business expense, to determine tax deductions. His job is to make sure the client pays the least tax within the law and gets the best return.

A tax preparer can also represent the client in front of the IRS (Internal Revenue Service). Also, a tax preparer can suggest to the taxpayers how to maintain his expenses for future tax minimization.

How many studies will you need to become a Tax Preparer

The minimum recruitment is a bachelor’s degree to become a tax preparer. Although this is not enough, you might need to get higher degrees to ensure a job.

But remember you will have to get a degree in finance-related subjects. Most preferably, earning a bachelor’s degree in accounting is a way to become a tax preparer.

How much a tax preparer makes

It can vary in states. Some states pay higher wages to tax preparers, and some produce very low.

But recent statistics show a tax preparer can earn 46,800 $ a year on average. And if you are trying to measure in the hourly rate, that’s somewhere around 11$/hour.

This is not the last of statistics; you can earn more or less money depending on your degrees and experience. If you get higher degrees like Masters’s or Ph.D., that can increase your wages massively.

Also, a well-experienced tax preparer will surely make more money than a newbie.

Salary Table by Experience

Years of Experience	Salary Per Hour
Less than 1 year	11.00 $
From 1 year to 4 years	12.48 $
From 5 years to 9 years	15.02 $
From 10 years to 19 years	16.46 $

Adding More degrees to Earn More

You can earn more as you acquire more degrees. More knowledge means more experience and understanding. So people will pay you for your expertise. The median salary for a bachelor’s degree holder can be 46K $. But there a Masters’s degree holder can get a median salary of 91K $.

Earning by Stature

The tax preparer can be divided into many sections. You don’t have to remain a tax preparer for the rest of the life. Yet you can earn more in tax preparation with specific professional statures.

Enrolled Agents: They are those who worked for IRS or are certified by the organization. They can do tax filing for individuals and small businesses as well. And earn a handsome amount.

Certified Public Accountants: Experts in tax laws and management of complex tax filings. Suitable for a mid-size business that earns an average of 65000 $ a year.

Conclusion

It depends on states, degrees, and experience how much do tax preparers make. Yet, the opportunities are not limited. If you wish to get into this sector, prepare well.

John C. Crawford

I am John C. Crawford. I am the founder of EnjoyWiki.com. I am a professional freelancer, blogger and content writer. I have several blogs and EnjoyWiki.com is one of them. I always love to share my experience on my blogs.