Tax season is just around the corner, and if you’re looking to work as a certified tax preparer in your area, you’ll need to do some research and gain a few certifications. While the process may seem daunting, becoming a certified tax preparer can be a great way to earn extra income during the tax season. Here’s what you need to know about getting certified.
Research Requirements in Your State
The requirements for becoming a certified tax preparer vary by state, so the first step is to find out what the requirements are in your home state. You’ll need to make sure you meet the qualifications of each state you want to work in. For example, some states may require a certain number of hours of tax preparation experience or a college degree. In addition, some states require a background check to make sure that the person applying for certification is of good moral character. Make sure you research the requirements for your state and any other states you plan to do business in.
Take a Certified Tax Preparer Course
Once you’ve determined the requirements in your state, you’ll need to find a certified tax preparer course that meets those requirements. You can usually find these courses online or at local colleges, and they will usually cover topics such as understanding tax laws and regulations, filing taxes accurately, and using the right tax forms. Once you’ve completed the course, you’ll receive a certificate that shows you’ve met the necessary requirements.
Apply for Certification
Once you’ve completed the course, you’ll need to apply for certification in your state. This process usually involves filling out an application and submitting it, along with your certificate from the course and any other documents such as a background check. Once you’ve submitted the application, you’ll have to wait for the state to review and approve it. Once your application has been approved, you’ll be able to start working as a certified tax preparer.
Get a Preparer Tax Identification Number (PTIN)
Once you’ve been certified, you’ll need to get a Preparer Tax Identification Number (PTIN) from the IRS. This is a unique number that identifies you as a tax preparer and allows you to file taxes on behalf of clients. You can apply online for a PTIN, and it usually takes up to a few weeks to get approved. Once you have your PTIN, you can start taking on clients.
Stay Up to Date on Tax Laws and Regulations
Now that you’re a certified tax preparer, it’s important to stay up to date on all the latest tax laws and regulations. This includes keeping up with any changes in tax codes and filing deadlines. You can find this information online or through trade publications. It’s also a good idea to attend conferences and seminars to stay on top of the latest trends and developments in the tax industry.
Market Yourself
Now that you’re certified, it’s time to start marketing yourself and your services. You can do this through word of mouth, by setting up a website and social media pages, or by networking with other professionals in the industry. You can also offer discounts to attract new clients, or set up payment plans so that clients can pay over time. The more you can do to make yourself visible, the better off you’ll be.
Find Clients
Now that you’re certified and have a PTIN, it’s time to start looking for clients. You can start by reaching out to people you know, such as family and friends. You can also reach out to local businesses who may need your services. You can also join professional tax preparation organizations, which can help you network with other professionals in the industry and find new clients.
Conclusion
Becoming a certified tax preparer is a great way to earn extra income during the tax season. While the process can seem daunting, it’s actually quite simple if you know what you’re doing. Start by researching the requirements in your state, taking a certified tax preparer course, applying for certification, getting a PTIN from the IRS, staying up to date on tax laws and regulations, and marketing yourself. You can then start finding clients and building your business. With a bit of work and dedication, you can become a successful certified tax preparer in no time.