Can anyone answer some questions i have on preparing taxes from home for extra money?

Question

I would like to prepare taxes from home when the tax season comes. What do most people that prepare taxes charge for the differennt type of forms. What software do they use and is there any out there that resemble the software that H&R bkock uses? What type of legal things must i take care of before i can start this little side job? I have recently finished taking the basic tax preperation course with H&R Block.

Answer 1

Become an enrolled agent if you can and make sure you buy liability insurance for your business. You will need a business license for the state and maybe the city. Everyone would charge a different amount most by the hour not the form but some do charge by the form.
Unless you are a CPA or enrolled agent you may not get much business or only basic forms and you won't be able to represent your clients in tax audits. If you make a mistake that cost your client money they can sue you so you need to make sure you have insurance for malpractice.

Answer 2

There are two general methods for pricing a tax return. You can charge by the hour, for instance, all work would be done for $50 per hour. You would have to figure out the going rate for this work in your area. Another method would be to buy the software and divide the total software cost by the estimated number of returns you will be preparing. You would then charge that dollar amount plus a mark up to cover other incidental costs and your profit. You could even use both methods. Charge a fixed cost for every return to cover the cost of the software plus an hourly rate for the work.

Most software packages are fairly similar in that they are windows driven and very user friendly. Some of them can get very expensive.

Your biggest concern will be professional liability insurance. If you screw up a return, someone might come after you. You will also have to compete with the tax prep services that offer quickie refunds and electronic filing.

My best advice to you would be to work at H&R block for a year or two to get some experience and maybe develop some clients.

Answer 3

It all depends on where you go for online school. Some are free, some have a fee per class, etc. There's dozens of online home schooling programs, you just have to google it for your area. Books, again, depend on the actual place you sign up for homeschooling with. In most homeschooling programs, there is free online or over the phone help 24/7.