The difference between a preparer who earns $250 per client and one who earns $500 or more is the ability to see beyond the current return to what the client could do differently next year.
The Two Lenses
Train yourself to look at every return through two lenses. The compliance lens asks: is this return accurate and complete? The planning lens asks: what could this client do differently next year to reduce their tax liability?
What to Look For
Retirement contributions below the limit. If a client has earned income and isn’t maximizing their IRA or employer plan contributions, that’s a conversation. Even modest increases can reduce their taxable income meaningfully.
Self-employment income without an S-Corp election. When a sole proprietor’s Schedule C income consistently exceeds $50,000 to $60,000, the self-employment tax savings from an S-Corp election can be $5,000 to $15,000 per year. You’re not providing legal advice by raising this topic. You’re providing tax planning guidance and referring to an attorney when the client is ready to act.
Underpayment penalties on Form 2210. If a client got hit with an underpayment penalty, proactively calculate their estimated payments for the coming year. Preventing next year’s penalty is advisory work that earns loyalty and fees.
Missed education credits. Review the client’s situation for American Opportunity or Lifetime Learning Credit eligibility every year, especially if they have children approaching college age.
Large charitable deductions without documentation. If you see significant Schedule A charitable contributions, verify the client has contemporaneous written acknowledgment for gifts over $250 and a qualified appraisal for non-cash gifts over $5,000. Catching documentation gaps now prevents problems during an audit later.
Building It Into Your Workflow
After completing a return, spend five minutes scanning for planning opportunities. Make brief notes. Then during the delivery conversation, mention what you found: “I noticed your retirement contributions were well below the limit this year. If we increase those next year, it could reduce your taxable income by $X. Want to schedule a planning session to look at that?”
That one sentence opens the door to advisory revenue and positions you as more than a form-filler.
For training on advisory services and tax planning, visit musespring.com.