Table of Contents,
- 1 Overview
- 2 State of Florida: Tax, Accounting & Demographic Information
- 3 Tax preparer duties and liabilities.
- 4 Steps to become Tax preparer in Florida
- 5 FAQS
- 6 Do I need a degree to be a tax preparer?
- 7 Do I need a high school diploma to prepare taxes?
- 8 What’s the difference between a CPA and a tax preparer?
- 9 Is it hard to become a tax preparer?
Every year, individuals, families, and businesses seek a professional tax preparer who they can trust. When you complete our PTP certification, you’ll have the professional designation of “PTP.” This shows those looking for a quality tax preparer that you have the skills and knowledge to handle any individual or business tax returns, regardless of how complicated they are. This will put you in demand, especially compared to any competition in the area who may not be certified.
This career is perfect for individuals who want financial success and work flexibility. For instance, it allows you to decide if you want to work full or part time; you can even opt to work from home. This flexibility gives you the freedom to make your own hours and only take on as much work as you want.
When it comes to career opportunities, few offer both flexibility and a steady paycheck. It’s also a perfect time to get certified. According to the Bureau of Labor Statistics, this career field is expected to grow 2.9% through 2026. Current numbers reflect that most tax preparers make a median salary of 36k, and new jobs are opening up like never before. No matter where you live, you’ll find work as a professional tax preparer.
A career as a Professional Tax Preparer can provide stability, flexibility, and high earning potential. Taxes are always going to be a fact of life, which is why the need for tax preparers will always be there. With proper certification, you’ll never have to worry about your job security. Gainful employment will always be possible.
State of Florida: Tax, Accounting & Demographic Information
Florida is one of the topmost tax-friendly states in the U.S. It is also one of the few states where residents do not have to pay a state income tax. Their no-state-tax law was adopted in 1924 and has remained the same since. There is also no estate or inheritance tax, factoring into why it is such a prime state for retirement.
In Florida, any sale, admission, storage, or rental is taxable, though there are some circumstances that make a transaction exempt. The general state sales rate is 6%, with some exemptions. These exemptions include 4% on amusement machine receipts, 5.5% on the lease or license of commercial property, and 6.95% on electricity.
Florida relies heavily on property and sales tax for most of its revenue since the state does not implement a state income tax. Property taxes are assessed through a millage rate that is based on the appraised value of the property. Orlando residents pay a median rate of 1.16%
Changes in federal taxes could impact the residents of Orlando. Tax brackets have recently been adjusted to account for inflation, though tax rates are not changing at this time. Standard deductions will be increasing; single filers can expect an additional $400, while joint filers can expect $800.
Tax preparer duties and liabilities.
A tax preparer differs from an accountant, bookkeeper or certified public accountant in that a tax preparer does not need a college degree. While tax preparers must have a high school diploma, they don’t have to pass a licensing test in Florida. Florida does not require tax preparers practicing in the state to be licensed, but there is legislation being considered. To become a tax preparer in Florida, you will need to attend a tax preparation school online or in person and pass tax preparation exams.
Generally speaking, a tax preparer completes an individual’s 1040 form and state forms and submits them to the Internal Revenue Service with the tax preparer’s tax preparation identification number. In Florida, there is no state income tax, but Florida residents must comply with the IRS code.
Tax preparers in Florida usually work for a tax consultation or preparation company such as Jackson Hewitt, H&R Block or Liberty Tax Service or may work for a CPA or tax attorney and the liabilities are placed on their employer
Steps to become Tax preparer in Florida
- Select a tax preparation school.
There are tax preparation classroom courses and online courses offered by most national tax consultation/preparation firms such as H&R Block, Jackson Hewitt and Liberty Tax Service. Individuals who wish to become tax preparers in Florida generally have access to all three companies either online or in a classroom setting. You can also take online classes offered by the National Association of Tax Preparers.
Tax preparers must complete some type of formal education to qualify for licensing and employment. Many tax-preparation companies and schools offer tax-preparation training programs designed to teach students how to conduct interviews with clients, prepare taxes, and advise clients on future tax-paying strategies. A bachelor’s degree in accounting, business, or finance can expand employment opportunities and provide future tax preparers with knowledge of tax laws and regulations. As we said earlier, some employers prefer applicants with a degree.
Take additional courses in communication. Since the tax-preparation field requires direct contact with clients, employers value candidates with excellent speaking and writing skills.
- Join a national tax preparation association
Join a national tax preparation association,such as the National Association of Tax Preparers, which is the largest and most recognized in the U.S.
- Go to work as a tax preparer in Florida.
Although there are no licensing requirements in Florida to be a tax preparer, you will still need to apply for filing privileges with the IRS. To get E-File privileges with the IRS, visit the IRS’s website and complete an e-file application (see Resources). If you are going to be a private tax preparer in Florida, you will need tax preparation software such as those offered by Intuit or Tax Works; these programs cost up to $600.
Do I need a degree to be a tax preparer?
You don’t need a bachelor’s or associate degree to become a tax preparer. However, to build a successful tax prep business, it helps to have basic math, computer, and customer service skills.
Do I need a high school diploma to prepare taxes?
You don’t have to be a high school graduate to work as a tax preparer. But there are several certifications available that can help you improve your skills and build your business, and many of those programs do require you to have a high school diploma.
What’s the difference between a CPA and a tax preparer?
A CPA has to obtain a proper degree, pass a complicated exam, obtain professional experience, and face regulation by a state board. Without completing the proper degree, tax preparers will not have the basic accounting skills required to prepare business tax returns.
Is it hard to become a tax preparer?
The task of becoming a tax preparer can be relatively easy compared to the rocky road of some similar ventures, such as becoming a real estate agent or an insurance agent. Tax preparation can be a quirky profession, meaning it is essentially not a year round profession but a more seasonal one.
What are the requirements to be a tax preparer in Florida ?
Within the last 18 months, enrol in a 60-hour qualifying education course from a CTEC certified provider, Get a $5,000 tax preparer bond from a surety, Get an IRS Preparer Tax Identification Number (PTIN) , and Invest $33 in your registration.
How much do tax preparers charge Florida?
In Florida, a tax preparer makes an average hourly wage of $20.40.
Is tax preparation a good career?
It is a successful one.
How much does a 55000 tax preparer bond cost?
$55 for coverage for two years.
How much does it cost to become a certified tax preparer?
Registration costs $33.
Tax preparer certification
Tax preparers must become enrolled agents (EAs), certified public accountants (CPAs), or attorneys in order to have unrestricted representation powers.
Tax preparer education requirement?
Although no formal degree is needed to become a tax preparer, many of them have one in accounting.