How to Obtain Your Certified Tax Preparer Certification in New Jersey- A Step-by-Step Guide

How to Become a Certified Tax Preparer in NJ

If you’re interested in a career in tax preparation, becoming a certified tax preparer in New Jersey can be a rewarding step. Tax preparation is a vital service for individuals and businesses, and certified tax preparers are in high demand. Here’s a comprehensive guide on how to become a certified tax preparer in New Jersey.

1. Meet the Basic Requirements

To become a certified tax preparer in New Jersey, you must meet certain basic requirements. These include:

– Being at least 18 years of age
– Having a valid Social Security number
– Possessing a high school diploma or equivalent

2. Complete the Preparer Tax Identification Number (PTIN) Application

The first step in the certification process is to obtain a Preparer Tax Identification Number (PTIN) from the IRS. This number is required for all tax preparers, regardless of their certification status. You can apply for a PTIN online through the IRS website.

3. Pass the IRS Competency Examination

To become a certified tax preparer, you must pass the IRS Competency Examination. This exam covers tax law, regulations, and ethics. The exam is offered at various testing centers, and you can find more information about the exam and how to register on the IRS website.

4. Obtain a New Jersey Tax Preparer License

In addition to the federal requirements, New Jersey requires tax preparers to obtain a state license. To obtain a New Jersey tax preparer license, you must:

– Complete a New Jersey tax preparer course approved by the New Jersey Division of Revenue
– Pass a state exam
– Submit an application for a New Jersey tax preparer license

5. Maintain Continuing Education Requirements

To keep your certification and license active, you must complete continuing education (CE) courses. New Jersey requires certified tax preparers to complete 15 hours of CE every three years, including at least 2 hours of ethics training.

6. Join Professional Organizations

Joining professional organizations can help you stay up-to-date with the latest tax laws and regulations, as well as provide networking opportunities. Some popular organizations for tax preparers include the National Association of Tax Professionals (NATP) and the National Society of Accountants (NSA).

7. Build Your Experience

While becoming a certified tax preparer is an important step, gaining practical experience is equally crucial. Consider volunteering or working for a tax preparation firm to build your skills and understand the industry better.

In conclusion, becoming a certified tax preparer in New Jersey involves meeting federal and state requirements, passing exams, completing continuing education, and building your experience. By following these steps, you can establish a successful career in tax preparation.