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Baseball Express | I am a college student, and I have already completed my Tax Courses can I prepare someone else's Income tax? |
I purchased Turbo-tax and find it really helpful, but I would like to help my friends and family prepare their return nothing business like, just to help them save some money (well maybe a few bucks here and there) . Do I need some kind of license? I know in california you do, but I am from Texas. |
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Move on
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If you are signing as the preparer than yes. If your family and friends are doing all the signing and taking full responsibility for your work than no. Not even in California. |
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Bob F
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Only CA and OR require licenses. If you collect money for preparing these taxes, you are required to sign as the paid preparer and you have to supply your social security number or PTIN number. So if you are planning to do more than a few of these for money, go to the IRS web site and apply for a PTIN number. You might want to read all you can on their for tax professionals (there is a tab at the top). |
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Fun N Sun
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I prepare my friends tax returns every year on Turbo Tax and I sure hope you can. i dont see a problem with it. (i dont charge anything just do it as a friend). |
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Judy1
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In Texas you don't need a license, but you can't legally use TurboTax commercially to prepare even one return where you get paid even one dollar. Also you are limited with how many returns you can efile. |
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bostonianinmo
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The village idiot can hang his shingle out as a "Tax Pro" in Texas, and from what I've seen from some work I've seen being done there (lived in TX for over 8 years) quite a few of them do just that.
The only license you need is a business license from the local city hall or county courthouse and that's really just to extract a few $$$ from your pocket (county) or for zoning rules (city) compliance. I've seen bait shops, junk yards, massage parlors, and buy-here/pay-here car dealers that prepare taxes in TX.
You should get a PTIN from the IRS so you don't spread your SSN all over town. There's a link for tax pros on the IRS website home page that will explain all of the rules and standards as well as how to sign up to transmit tax returns directly to the IRS if you wish to offer that service. |
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Spock (rhp)
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you need to search Texas law on whether tax preparers need a Texas license to do business. google will do this easily.
otherwise, only a general business license may be needed.
***
PS: some cities and/or counties may also require licenses -- it is your responsibility to find out and comply if you get paid. |
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v b
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1. You can't use the regular Turbotax for returns you did for pay. You need to buy the professional edition (which costs more).
2. You can't efile unless you got an EFIN number and you are 2 months late on requesting one. You are also 45 days late requesting a PTIN so you'll have to list your SSN on the tax return (bad idea).
3. Texas does not license. A shame. |
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Aydens Mommy
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yes, just dont sign it as the prepareer unless you plan on paying tax on the money you receive. |
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Norma
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Check with HR Block to see if they can help. |
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