Home-Based tax return preparer

Employees, retirees, gig workers, freelancers and owners of very small businesses who want someone to handle their return.

A fee per return, based on how complex it is (extra forms and schedules cost more), plus repeat clients each year and occasional off-season help such as amended returns or IRS letters.

• Comfortable with numbers and tax forms
• Careful and detail-focused
• Clear, patient communication with clients
• Keeping client records private and organized

• A PTIN is generally required for paid preparers; check IRS rules on e-filing and what credentials you need
• Some states regulate or register tax preparers, so check your state's requirements
• Professional liability (errors and omissions) insurance, and what your general liability does not cover
• Protecting client data: check the IRS data security requirements for tax professionals
• Income is concentrated in tax season, so plan your cash flow
• Check home occupation, HOA or lease rules if clients visit you

Startup costs are typically around $500 to $2,500, depending on your software, equipment, insurance and any credentials you need. These are estimates, so price each item before you start.

Things to check: a PTIN is generally required for paid preparers, so check IRS rules on e-filing and what credentials you need. Some states regulate or register tax preparers, so check your state's requirements too.

Monthly revenue is typically estimated at around $600 to $3,000, depending on how many clients you take on. Income is concentrated in tax season, so plan your cash flow. The estimate assumes at least about 10 hours a week.