I'm a staff accountant that is think of being a tax preparerer as a second job. Is it worth it?

Question

I'm looking to work with H&R Block next tax season. Is the time/pay worth it as a second income???

Answer 1

I've just completed my first season with H&R Block. I enjoyed it and it's a good fit for me, but you need to consider a few things.

First of all, during the peak part of the season (Last third of January to about the middle of February), I worked every day (5-10 pm in the evening and 15 hours on the weekend). It was a bit hard on my family

Secondly, I (and everyone else) had to sign a non-compete clause, which stated that when I separate service I could not prepare a tax return for an H&R block client for two years within a 25 mile radius of the city limits of the town I worked in. Thus, if I didn't like working for them I can't just go work at a different tax company.

Also, at least last season, besides tax returns we had to prepare "IMAL's", which are basically paystub loans. Based on the last paystub, we would enter all their information as if we were doing a tax return. The computer would estimate their refund, then our partner bank would offer a loan on a portion of the refund. They would still return and have to file an actual tax return, which would repay their loan. The IMAL's generated no commission, but did require almost as much work as an actual tax return. The return appointments were scheduled as "general", so there was no guarantee you would ever get your commission off doing most of the work.

As I mentioned above, the job is commission based. They gave a small draw (approx $6.50 to $7 an hour) against your commission, however. Your actually compensation starts at 19% of the paid return volume, and 15% of the optional Peace-of-Mind insurance program. During last tax season, I completed approximately 110 returns and made $4000 gross. I also had a number of returns I could not complete because they either walked (due to the cost of preparation and/or they had already done it with a tax software program and just wanted a second opinion) or I refused to complete due to obvious fraud.

Least you think I'm negative though, It was a really nice fit for myself. I didn't have to worry about issues that might occur if I tried doing tax returns on my own, such as liability issues. I also didn't have to do marketing, and didn't have to invest my own money on expenses. When I ran into issues I had not dealt with before (IE, Indian exclusion) there were a number of seasoned preparers to consult and advise on how to handle the issue. I always tried to give my clients their money worth, and because of the little things I did (such as advice for the future) I was able to get about 60% to sign up for an appointment with me next tax season (a year in advance). These are clients I won't have to share with the other preparers in my office next year.

In order to get hired on, they'll require you to take both part 1 and part 2 of their basic income tax class. I've got coupons I'd be willing to send that work in Division 65 (Oklahoma, Texas, and Arkansas). You also can contact the local office and they may give you a discount on the class. I didn't know this and paid the full price, which was still well worth the money. The class is basically equivalent to a college level course, and requires several hours a week outside of class preparing and doing the exercises and returns in the class. Around here, the classes start in September.

We also had interns, which were basically college students majoring in accounting who were doing the returns for not only cash, but college credit as well. They were treated exactly the same as 1st year preparers, including being required to sign the non-compete agreement and the same compensation.

Hopefully this helps answer your questions. Feel free to contact me if you have any follow-up questions.

Answer 2

I have worked for Block for 16 years. I started when I was unemployed and have continued part time. Pay is low to start, but goes up and down depending on certain factors.

I became an Enrolled Agent and now I can take as many classes I can through H & R Block for free.

You would mainly work during tax season (Jan 1 - April 15), but H & R Block and other tax firms do have employees that work year round in a few offices. Who do you think handles the letters from the IRS and state taxing authorities. Also, many companies are on a fiscal year so their taxes are due on different dates. Amended returns can be filed all year round. Some people don't file their returns on time either.

Answer 3

Now for some correct information: £200 per week is approx £10,400 per annum Your personal allowance situation is complex as you have that taken into account through your PAYE system. Let us assume that you use up all your personal allowances. So, £10,400 at 20% is a maximum of £2,080 tax bill. Then you have NI You'll pay (again, forget your employed work, you'll pay NI separately for that) a flat rate of £2.30 a week (£119.60pa) and over £5435, 8% of your earnings, meaning on a figure of £10,400 you'll pay an extra £397.20 bringing your NI contribution to a total of £516.80pa. So, your tax bill would be (roughly) as follows on your self employed income: Income £10,400 Income tax at 20% (No Personal Allowance) £2080 NI Flat weekly rate £119.60 NI 8% over £5435 is a total of £397.20 NET INCOME £7803.20 Again, that includes no personal allowances and no business expenses or running costs. You will be paying Class 1 (PAYE) 2 (Self Employed) and 4 (Self Employed over £5435) National Insurance, but you won't be paying some of the gross figures that some people are talking about above. Hope this helps, and remember they're only rough figures. Even claiming £20 a week petrol would help your case and I fully suggest getting an accountant to sort out the discrepancies between your self employed/employed positions. Also, for your income, you'll only be paying £50 - £100 for an accountant per year, but they'll save you that amount in tax alone.

Answer 4

A lot depends on your abilities and your location.

I was in the same boat. I started preparing taxes 7 years ago as a part-time job in addition to my full time staff accountant job. I really enjoy it and now the money is pretty good. It is not the greatest when you first start but still better than most part-time retail jobs. I sort of looked at the pay as a bonus because I really enjoy taxes.

The location matters because of the type of returns. Inter-city offices tend to very simple returns but a lot of them and suburban offices do fewer returns but much more complex ones.

Give it a shot. You have nothing to lose.

Answer 5

I also work in accounting and have thought about picking up some extra money working at H & R Block. The advantage that I see is that if I hate it, I only have to do it that one season. Give it a try! The tax preparation class should be fairly cheap at your local community college.

Answer 6

why not? u choices not ur chances not ur chances determine ur destiny...i wish u
undertake things that u truely feel essential... never should u be fickle minded... do not seek everybody's opinion if u feel the income and the surrounding suites u ..go ahead
... let every thing u take up go on right...
take ur chances and grow up in life...
a true hearted well wisher....
go by ur heart...

Answer 7

If you feel you need the extra money, and you don't think you can make more money doing something else or working somewhere else, than by all means go for it.

Answer 8

as a tax preparer, you can only work 2-3 months a year !

Answer 9

Deffenitly my grlfrnds dad and her both do it .They both enjoy having the experiance.You just might learn things you never knew also.Peace,hope this help'd