Tax question?

Question

You can be just a regular average person and do someone's taxes and have them pay you right? Because there is a section on the tax form where it ask if you are self employed. I am not self employed per say, i work for a living. Are there any restrictions to preparing someone's taxes?

Answer 1

As long as they are done right, anyone can do them.

Answer 2

There are local laws with specific requirements, but in many places, you can do anyone's taxes, although would not be a good idea unless you know what you're doing and know at least the basic tax law that applies to the returns you're doing.

If you do any work for money but don't get a W-2 for it, you're considered to be self-employed by tax law - like for example if you're doing taxes for someone and charging them, but not working for a company to do them where you get a W-2 for your work. If you're not aware of this, you need to learn a lot more about tax law to do even your own return, let alone someone else's.

Answer 3

It depends on the state you live in. For example in California you have to be either a CPA or an enrolled agent to be allowed to prepare other people's taxes in exchange for money.

If you're doing your mother's taxes for example, then you're not really considered a paid preparer, and therefore don't have to put anything in this box.

Even if you have another job and do taxes only on the side, you're considered self-employed for this activity.

If you prepare somebody's taxes, you'll also need to sign their tax return as the paid preparer.

Answer 4

no you need to be licensed to do taxes for people and charge them money for it

if you want to help someone do their taxes for free or if its a friend charging a friend or relative to do them thats ok