Salary of an Income Tax Preparer

Salaries

• Tax preparers may work by themselves, in small businesses or in large companies. Their surroundings are comfortable and climate-controlled, and they can use computers and calculators to ease the workload. They work 40-hour weeks, though during tax season overtime is common. Full-time salaries run $30,060 per year, with a range of $17,680 to $64,270. Many tax preparers work part-time or only when taxes are due. Their hourly rates are $14.45 per hour, with a range of $8.50 to $30.90. These figures are as of May 2009 from the Bureau of Labor Statistics (BLS).
  
  

Experience

• The PayScale Report shows how the upper range of salaries for tax preparers can increase with experience, as they gain more clients. However, the lower end can decrease as clients seek out less-expensive tax preparers. New workers earn $24,207 to $48,609 annually, while those with one to four years of experience receive $31,376 to $50,558. Those with five to nine years get $29,479 to $51,097, and those with 10 to 19 years make $24,949 to $54,306. Finally, those with 20 or more years top out at $33,017 to $58,927. (REFERENCE 3)
  
  

Certification

• The PayScale Report shows how certification can affect salary because it shows adherence to industry-accepted tax preparation standards. The H&R Block Tax Course shows certification from just one tax preparation firm, and thus offers the lowest compensation at $23,331 to $40,695 per year. An enrolled agent is one who passes a special exam from the Treasury Department and thus gains higher pay at $32,046 to $51,447. The certification with the most stringent education requirements is certified public accountant, which indicates expertise in a wide variety of financial and tax procedures. This garners the highest compensation at $40,948 to $63,712.
  
  

Employers

• The BLS states that the biggest employers of tax preparers are accounting, tax preparation, bookkeeping and payroll services, with almost 98 percent of the available 61,130 jobs. They pay close to the median at $17.18 hourly or $35,740 per year. The highest-paying jobs belong to insurance carriers, with pay at $29.85 or $62,090. However, because they only offer 140 jobs, this industry is extremely difficult to enter.