Tax preparation is one of the inevitable duties most people are required to perform. Tax returns and compensations can be quite helpful in reducing the amount spent in paying taxes. Although the process of preparing tax returns can be sufficiently completed without professional assistance, most people rely on the services of paid preparers. In a recent research, it was determined that approximately 6 out of every 10 people in the US use paid tax preparers. It is therefore one of the career paths that hopeful accountants and attorneys can pursue and there is a great demand for such services. If you are interested in becoming a work at home tax preparer, then there are a few things to learn.
What does it entail?
A work at home tax preparer is not any different from all the other tax preparation professionals available in the market. The only difference (which is clearly expressed in the name) is that these professionals offer their services from home. The duties are no different and involve preparing various kinds of tax refund files including refund claims and general tax filing.
Becoming a tax preparer who works from home
Starting a tax preparation business run at the comfort of your home should not be an overwhelming call. There are many preparers who offer these services through their websites and earn lucrative income from their large client base. In order to become a work at home tax preparer, you will need to take up a course at tax filling and documentation. You will also learn a couple of things entailed in offering such services. Some of the important training that you will receive include the following;
• Understanding taxes and tax returns
• Compiling tax statements and documents
• Developing tax return and refund documents
• Developing reputation and sourcing for business
The easiest way to become a work from home tax preparer is through taking up a course that trains basic accounting and various techniques used in writing tax statements.
Requirements for qualification
There are very few requirements needed of people who want to become tax preparers. Until 2011, there were no defined frameworks for registering and authorizing tax preparation professionals. Such experts are mostly CPA (certified public accountants), attorneys and enrolled agents. IRS now requires such professionals to be registered and some cases also demand competency tests. To start a career in tax preparation working from home, you will need the following;
• Formal education in accounting or tax preparation
• PTIN (practitioner tax identification number)
• Registration with the authorizing bodies
• A platform to meet potential clients
There are many training course that can be taken online or in premised institutions for accreditation. Tax preparation does not involve much technical knowledge and experience which is why it can be completed by the taxpayer without contracting expert services. However, the overwhelming nature of ensuring accuracy and filling necessary documentation within specified deadlines often demands professional assistance. The training courses offered are aimed at equipping tax preparers with all the necessary tools and experience to accurately file tax returns on income and businesses. Follow this link to find training courses and programs which you can enroll with to become a licensed credible work at home tax preparer.
How to be a tax preparer?
- Meet the basic necessary education. Ex – High school diploma.
- Consider training options.
- Get the PTIN.
- Register with your state.
- Consider taking the IRS’s tax preparer exam and become agent.
- Work for a law or bookkeeping firm.
- Start your own business.
How to pay tax as an independent contractor or freelancer?
- Collect all 1099 forms.
- Prepare all your business receipts and invoices.
- Do a rough estimate of expenses versus income.
- Print the correct freelance income tax forms from the IRS website.
- Calculate your gross yearly earnings.
- Prepare your deductible business expenses.
- Fill out a Schedule C.
- Fill out the IRS Worksheet Form 1040-ES.
- Complete the applicable IRS income tax form for the current tax year.
- Pick a payment method.
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