How to Become a Tax Preparer: Skills Needed

While it's relatively easy to become a tax preparer anywhere in the country, you should take a good look at your own skills and abilities before you enter the profession or start a tax preparation business. Anyone can prepare taxes, but not everyone is suited to being a tax preparer.

A tax preparer needs the following skills to be successful:

Knowledge of federal and state tax laws. Understanding the tax code is an important aspect of preparing taxes. The bad news is that the tax laws change every year, so be prepared to put in a good deal of time studying and learning. Fortunately, however, the foundational principles of preparing taxes seldom change. In other words, if you understand the principle behind how a dependent is treated under the tax law, it's a simple matter to look up the dependency exemption amount - which changes every year.

Math Skills. Most people think that tax preparers must be extremely good at math. Math is important in tax preparation but not as important as knowledge of tax law. There are two reasons behind this. First, anyone who has completed third grade has the math skills to complete a tax return. The only math required for a tax return is basic addition, subtraction, multiplication, and percentages. Second, tax preparers rely more and more on computers to assist them in preparing client returns. Since computers are exceptionally well-suited to making accurate mathematical calculations, most of the hard work is done. Still, the ability to look at number and make estimates and comparisons in your head is a good skill. Those with an affinity for math typically have more success in financial careers.