Most Americans dread tax Preparer Eitc, but it would be a lucrative career! When you prepare taxes for others, you’ll grow and learn every day, feel fulfilled by helping others, and enjoy the profits due to the high demand during tax Preparer Eitic season.
Unfortunately, given the number of tax preparers in the market, it can be challenging to find clients who acquire your services and trust your expertise. If you want to grow your client base and earn more, why not invest in word-of-mouth marketing?
Words hold tremendous power, primarily when trusted people speak them. Once a past client shares their positive experience with you, they may hook in potential clients, helping you grow your business. However, to ensure that your clients share their testimonies with their circle, you must first provide them with a smooth and seamless experience.
How to Provide the Best Service
As the role’s name suggests, tax preparers are supposed to prepare the taxes of their clients. But, to generate positive word-of-mouth regarding your services, you may want to do more for your clients.
If you want to be a successful tax preparer, you must go above and beyond in serving your clients by not only saving them from the hassle of the tax process but also helping them pay less in taxes than they initially should have.
Saving your clients a lot in taxes and increasing their refund is good for the client and yourself! By utilizing the Earned Income Tax Credit (EITC) and understanding the recent changes around it, you’ll be able to serve your clients better.
What Is the Tax Preparer EITC?
The Earned Income Tax Credit (EITC)is designed to help low to moderate-income taxpayers. Through the EITC, clients can enjoy a significant tax Preparer Eitc break that can offset taxes owed or increase their refund amount.
For your client to qualify for the EITC, they must meet the following criteria:
- Have earned income during the year
- Have a valid social security number by the tax filing due date
- Have made $10,000 at most in investment income for the tax year
- Cannot file Form 2555 or Form 2555-EZ (foreign income)
- Be a U.S. citizen or resident alien the entire year
How to Calculate for Tax Preparer EITC
You calculate your client’s EITC by using their Adjusted Gross Income (AGI), filing status, and the number of dependents. For accurate and easy calculation of your client’s EITC, we recommend using a tax pro software that will automatically account for the EITC and notify you if any of your clients qualify for it.
Under the Tax Relief Act of 2020, your client can use their 2019 income to calculate their EITC for their 2021 Tax Preparer Eitc return if their 2019 income was higher than their 2020 income. If your client didn’t earn any income in 2020, they’d benefit from this.
Conclusion
To be a successful tax preparer, you must provide the best services and put your client’s interests above all. Make sure to invest in excellent tax pro software, stay updated with the changes in tax regulations so that your clients will remain happy, and even share their positive experiences with others, leading to more clients!
Do you want to make tax preparation easier? Then, our tax pro software at Keystone Tax Solutions may just be what you need! Our ALL IN ONE Software Package is designed for small and large tax offices with multiple offices and many employees—you can enjoy unlimited returns, add unlimited users, and three prior year return access. Get a free demo now!
