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Understanding the average salary of a profession can help you make a variety of important decisions, from what field you want to enter to where you want to live and work. In California, the average physician makes more than $200,000 per year. Knowing that, medical students have a better idea of what they could make when they get out of school. Likewise, physicians looking to relocate to a new state have a better sense of how their salary can change based on where they decide to move.

Here’s a closer look at how much medical doctors make a year in California, regional differences in salary, and the top-paying medical specialities in the state.

What Is the Average Salary for a Medical Doctor in California?

The average salary of a physician in the state of California is $229,420 per year, according to data from the U.S. Bureau of Labor Statistics (BLS). This figure doesn’t account for a physician sign on bonus, which some doctors receive. Interestingly, California is squarely in the middle when it comes to average physicians’ salaries, along with Oregon, Texas, Maryland, and New York. The average salary in California lags more than half of states, including Arizona, Florida, Wyoming, Kentucky, and South Carolina.

Though many consider anything more than $100,000 a good salary, California’s relatively low pay may come as a surprise to some. However, there are some possible explanations. For one, California spends the most on Medicaid among U.S. states. Medicaid — and Medicare, for that matter — both reimburse physicians at rates lower than their usual fees. Doctors who are seeing a lot of elderly or low-income individuals may see their incomes reduced.

Note that early in your career as a doctor, while you’re in your residency or fellowship, you’ll likely make considerably less than you will later in your career. Explore ways to get by on a medical resident’s salary.

You may also want to consider using a spending app, which can help you set financial goals and a budget and track where your money goes.

Recommended: Budgeting as a New Doctor

How to Become a Doctor in California

Doctors are health care professionals who are charged with meeting with patients, diagnosing their conditions, and managing their care plans. They perform tests and prescribe medications. And they must coordinate with a range of other health care professionals, including other doctors, nurses, and emergency medical technicians.
That’s a lot of responsibility, and as a result, it takes a lot of training to become a doctor.

First, you’ll need to complete a bachelor’s degree in a field that relates to medicine, such as pre medicine, biology, or biochemistry.

Next, you’ll need to go to medical school, where you will receive classroom and practical training to advance your knowledge in the medical field. Medical school is typically a four-year program. While in school, you’ll complete the first and second parts of the U.S. Medical Licensing Examination (USMLE). The average cost of medical school can be high, running more than $50,000 a year at private institutions.

When you graduate from medical school, you’ll enter a residency program that helps you choose a medical specialty. These programs usually last three years, and under the supervision of an experienced physician, you’ll work full time as a resident doctor. You’ll complete your residency by passing the third and final part of the USMLE.

After your residency, you can choose to complete a fellowship that gives you further training in the specialty you’ve chosen. Though fellows tend to make more than residents, their salary isn’t as high as new doctors. The good news is, there are ways to budget on a medical fellowship salary.

Finally, you’ll need to obtain a California medical license from the Medical Board of California. You can renew your license every two years, which requires 50 hours of continuing medical education.

Recommended: What Is the Average Medical School Debt?

Reasons to Become a Doctor

Becoming a doctor can involve a lot of challenges, but it can also be immensely rewarding work. Here are a few reasons you might become a doctor:

•   To help others: Doctors diagnose and treat medical conditions, helping to save and improve patients’ lives. They are often involved in ongoing treatment, ushering patients down the path to recovery. Being a physician is a people-centric profession that involves working closely with patients and their families to explain medical conditions and treatment options.

•   To work in the sciences: If you’re interested in a variety of scientific fields, from biology to chemistry to anatomy to pharmacology, being a doctor is a way to explore these subjects while also helping others.

•   To find purpose: The responsibility toward patients and coworkers and the ability to better people’s health and well-being often provide doctors with a sense of satisfaction and meaning in their work.

•   To become a teacher: Becoming a doctor requires a lot of schooling and ongoing training. Doctors may pass on this knowledge by educating patients on how to lead healthier lives, educating medical students in teaching hospitals, and supervising residents.

•   To have job security: The job outlook for physicians is relatively low, with the field expected to grow 3% through 2031. That said, there are still 23,800 openings for physicians projected each year, according to BLS data.

•   To make a good salary: The annual average wage for all workers in the United States is $58,260, according to the BLS — quite a bit lower than the $229,420 average annual pay for physicians in California.

Best-Paying Medical Doctor Jobs in California

The medical speciality you pursue in California will have a big impact on your salary. According to BLS data, here are some of the highest-paid physicians in California:

Psychiatrist

Psychiatrists help diagnose and treat mental disorders. Unlike psychologists, they are allowed to prescribe drugs for medical treatment.

Average salary: $305,290

Obstetricians and Gynecologists

OBGYNs provide medical care related to childbirth and diagnose and treat diseases of the female reproductive organs. They also specialize in women’s health issues like hormone problems, infertility, and menopause.

Average salary: $309,610

Anesthesiologist

Before, during, or after surgery, anesthesiologists administer anesthetics (which reduce sensitivity to pain) and analgesics (which act as pain relievers).

Average salary: $318,030

Cardiologists

Cardiologists diagnose and treat conditions of the cardiovascular system.

Average salary: $343,370

Radiologists

Radiologists use medical imaging techniques, such as x-rays, MRIs, and ultrasounds to diagnose and treat diseases and injuries.

Average salary: $345,100

Pathologists

A pathologist helps diagnose diseases by running tests on organs, tissue, and bodily fluids, such as blood.

Average salary: $350,980

Surgeons

Surgeons are medical doctors that may have to perform surgery, a procedure that physically changes a patient’s body.

Average salary: $351,580

Recommended: Starting (and Keeping) an Emergency Fund

The Takeaway

Being a doctor can be fulfilling, as it allows you to help people through work in the medical sciences. It can also be monetarily rewarding, and understanding average salaries can help you make decisions about where you want to live and what you want to specialize in. Though income varies by speciality, the average salary for physicians in California is $229,420 per year.

As you build your practice and earn a salary, a money tracker app can help you get your financial house in order. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

What is a doctor’s yearly salary in California?

In California, a doctor can expect to make $229,420 per year on average, according to data from the U.S. Bureau of Labor Statistics.

What is the highest-paying medical specialty?

Among the highest-paid doctors in California are pathologists, surgeons, and radiologists.

Who earns more: a dentist or a doctor?

In California, doctors tend to make more than dentists, who earn ​​$165,950 per year on average.

Photo credit: iStock/Drazen Zigic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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If you don’t have a college degree, certain jobs may be out of your reach. But does that mean that you can’t feel professionally fulfilled? Absolutely not. There are many careers that don’t require post-secondary education and can provide workers with a sense of happiness and purpose.

Here’s a look at the characteristics that make a job rewarding, the industries that offer the greatest sense of well-being, and the most satisfying jobs you can get in those industries that don’t require a degree.

Characteristics of a Satisfying Job

It can be tough to pin down the characteristics of a satisfying job. That’s because satisfaction can be subjective. There are plenty of roles out there that you may prefer to avoid but others would be over the moon to try.

That said, the most rewarding jobs tend to share some qualities. According to the Urban Institute, good jobs typically offer:

•   Liveable wages that allow employees to cover basic needs.

•   Growth opportunity within the company to improve skills and advance.

•   Workplace flexibility and control over one’s schedule.

•   Benefits, such as paid leave, health care, and retirement contributions.

•   Safe working conditions.

Why Is It Difficult to Find a Satisfying Job Without a College Degree?

There are other characteristics you might find necessary to consider work satisfying. For example, you might want a job where you help people, like a doctor, or a job where you work with animals, like a veterinarian.

Unfortunately, without a post-secondary degree, your pool of available jobs will likely be limited. Depending on the job market in your area, that may mean you have to compromise on the job you choose or relocate so you can be closer to meaningful work you qualify for.

Recommended: Should I Go to Community College?

Tips for Finding a Satisfying Job Without a College Degree

It’s a good idea to start your job hunt with online search engines. Your search will likely lead you to large job sites that compile listings from industries across the country. If you’re looking for a particular type of role, you may want to try industry-specific job boards.

Networking and word of mouth are also good ways to find work. Reach out to people in your area who work in the industry you’re looking to join. Ask to meet with them to learn what you need to do to successfully apply for a job in that field, and put the word out that you are actively looking.

Just because a job doesn’t require a degree doesn’t mean you won’t be able to find one that pays well. Consider exploring high-paying trade jobs and high-paying vocational careers to find jobs that pay top dollar.

Once you begin to earn a salary, consider using a spending app to help you budget and track your money.

Recommended: 25 High-Paying Trade Jobs in Demand

Top 10 Most Satisfying Jobs You Can Get in America Without a Degree

Now for the tricky part: How to take a subjective measure like satisfaction and apply it to a list of jobs that don’t require a degree?

For this list, we looked at The Washington Post’s roundup of 10 industries that offer the greatest sense of well-being, which was based on data from the U.S. Bureau of Labor Statistics. Those fields include:

•   Agriculture, logging, and forestry

•   Real estate, rental, and leasing

•   Construction

•   Management, administrative, and waste

•   Information

•   Health and social assistance

•   Arts and entertainment

•   Transportation and warehousing

•   Wholesale

•   Retail

What are the most satisfying jobs in those industries? Read on for examples.

Forest and Conservation Workers

Forest and conservation workers typically help measure the state of forest and improve quality. They may work for state and local governments or for privately owned forest lands.

Median annual wage: $30,550

Job outlook: Employment in this industry is expected to decline 3% through 2031. However, there are still 2,300 openings for forest and conservation workers projected each year.

Real Estate Brokers and Sales Agents

Real estate brokers and sales agents help people who are looking to rent, buy, or sell properties. They tend to be self-employed and are usually able to set their own hours.

Median annual wage for real estate brokers: $62,010

Median annual wage for real estate sales agents: $48,340

Job outlook: Employment is expected to grow 5% through 2031, which is about as fast as average. There are a projected 54,800 job openings each year.

Construction and Building Inspectors

Construction and building inspectors work alongside or as part of a team to make sure that new buildings meet codes, ordinances, zoning restrictions, and match up with specifications made in building contracts.

Median annual wage: $61,640

Job outlook: Employment for this job is expected to decline 4% through 2031. However, there are a projected 14,800 new jobs annually.

Refuse and Recyclable Material Collector

As part of waste management infrastructure, refuse and recyclable material collectors collect and dump waste materials. Their job may include driving waste collection vehicles.

Median annual wage: $38,500

Job outlook: N/A

Library Assistant

Library assistants work in public, private, or university libraries helping to shelve and organize materials, assist patrons, and perform clerical tasks. The job typically requires a high school diploma, and may require a post-secondary certificate.

Median annual pay: $34,050

Job outlook: Library assistant jobs are expected to decline 4% through 2031, with a projected 24,000 openings each year.

Home Health Aide

Home health aides are among the fastest growing jobs. They help people with chronic disabilities or illness perform acts of daily living, like getting dressed and eating. They may work in a client’s home, a group home, or a day service facility.

Median annual wage: $29,430

Job outlook: Jobs for home health aides are expected to grow 25% through 2031, with about 711,700 openings projected each year.

Musician

Musicians sing or play musical instruments in recording studios or in front of live audiences in concert halls, clubs, and churches. Many singers work part-time.

Median hourly wage: $30.49

Job outlook: Employment for singers is expected to grow through 2031 by 4%, with 20,800 projected job openings.

Truck Driver

Truck drivers are charged with transporting goods from one place to another. It’s typically a pretty solitary line of work, but if being on the open road brings you happiness, it might be worth considering.

Median annual salary: $48,310

Job outlook: Employment is expected to grow 4% through 2031, which is nearly average for all occupations.

Material Recording Clerk

Material recording clerks help track product information and keep supply chains running and businesses on schedule.

Median annual wage: $37,870

Job outlook: Employment is expected to decline 3% through 2031, with 131,900 projected job openings each year.

Retail Sales Worker

Retail sales workers help customers in stores find the products they need and then ring them up at the cash register. They may also restock shelves

Median hourly wage: $14

Job outlook: Employment is expected to stay the same through 2031, with a projected 594,00 openings each year

The Takeaway

Not having a college degree doesn’t mean you can’t find fulfilling work. Satisfying jobs that don’t require a degree can be found in any industry, though certain roles may provide a great sense of well-being. Examples include a construction inspector, a real estate broker or sales agent, a retail sales associate, a musician, a truck driver, and a library assistant. As you hunt for a job, look for roles that match up with what you want in terms of the type of work, workplace, amount of social interaction, and wage requirements.

Once you find a satisfying job and start earning a paycheck, a money tracker app can help you manage your finances. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.

FAQ

What are the most satisfying jobs?

According to a Washington Post analysis of Bureau of Labor Statistics data, the most satisfying jobs can be found in the agriculture, logging, and forestry industry.

What jobs pay over $100,000 without a degree?

It is possible to find jobs that pay over $100,000 a year and don’t require a college degree. One example is a construction site manager or a senior real estate manager.

How can I make $100,000 a year without a degree

If you want to make more than $100,000 a year without a college degree, begin by researching jobs that offer high wages and only require a high school diploma. You may then consider taking an entry-level position that allows you to gain the skills and experience needed so you can advance to higher wages.

Photo credit: iStock/Pekic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you fail to pay a debt, your creditor will do everything they can to you to pay them back. Eventually they may even send your debt to a collections agency that will get to work recovering the money you owe. The collections agency may hound you to pay your debt, potentially threatening to garnish your wages until it’s settled.

But what happens if you don’t believe you owe the debt in the first place? You may have already paid it off, and the collections agency did know. Or a scammer may have gotten hold of your personal information and used it to fraudulently open an account that’s now delinquent.

If you don’t believe a debt is yours, this guide can help you take steps to dispute a debt and win.

How to Dispute a Debt

When receiving calls about a debt that isn’t yours, your first step is to collect as much information about the debt as possible. Find out who is calling, the name of the company, the company address, and company phone number. At this point, don’t give out any personal information. Doing so could come back to bite you later, especially if you’re dealing with a scammer.

By law, collectors have to provide a letter with information on the debt and their contact information within five days of the initial call. Once you receive it, contact the original company to which you supposedly owe money to find out more about the debt.

While you’re at it, you may also want to find out what type of collector is calling. Is it in-house collections, a hired collections agency, or a debt buyer? In-house collections departments should have the most information at their disposal about the debt, while the others may have incomplete information, which could signal the potential for mistakes.

If the collector won’t give you information about themselves, it is a red flag that you may be dealing with a scammer.

What Is a Debt Dispute Letter, and How Do I Write One?

Once you’ve got the address of the collector, send a debt dispute letter within 30 days receiving the information. Fail to respond in this timeframe, and the collector can proceed as if the debt is valid.

Debt letters are not necessarily complicated to write. They may simply say that you’re writing about a collection on a debt you don’t think you owe. Ask the company to provide proof that you owe the debt in question and to stop contacting you if it can’t be proven.

If there’s any other information you need that you haven’t gotten yet, you can ask for it at this point.

Keep a copy of the letter for yourself, and track the copy you send so you can be sure it was received. A dispute letter alone will sometimes stop the collections calls.

The Consumer Financial Protection Bureau (CFPB) provides a sample dispute letter that you can mail to collectors.

Can a Debt Collector Contact You If You Dispute the Debt?

Once they receive the letter, the collections agency has to stop contacting you until it sends you a debt validation letter that documents that you owe money.

With this letter in hand, contact the original creditor and ask them if they have any record that you’ve taken out a loan and are delinquent. If not, they may decide to stop pursuing the debt.

Know Your Rights Under FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a federal statute that governs how debt collectors are allowed to act. There are certain things collectors are not allowed to do, including:

•   Collectors cannot call before 8:00 am or after 9:00 pm, and they are not permitted to call you at work if you’re not allowed to take those calls.

•   They are not allowed to harass you with threats of violence, profane language, or by calling repetitively.

•   They cannot present you with false information, including how much you owe and who is collecting the debt.

•   They cannot speak to anyone about your debt besides the original creditor, credit reporting agencies, and your lawyer. That said, they can contact others to try to find you as long as they don’t discuss the nature of your debt.

•   Collectors cannot engage in unfair practices, such as charging more than allowed by your state.

If a collector violates these rules, you may sue them in civil court, where you may win monetary compensation or they may be subject to fines.

Is There a Statute of Limitation on Debt?

Debts can exceed a statute of limitation, becoming too old to collect. Rules will vary by states, but collectors generally have three to six years. Once the statute of limitation is up, the debt becomes a “time-barred” debt. A collector can still try to collect, but they don’t have a legal standing to make you pay it.

When you contact a collector for the first time, be sure to find out when the debt was supposedly incurred. Contact your state attorney general’s office to find out what the statute of limitations is in your state to determine if the debt is time-barred.

What Not to Do When You’re in Debt

It is likely not fruitful to dispute debt that you do actually owe. If you are in debt, do what you can to pay it off, even when it’s been sent to a collector. Unpaid debt will damage your credit score, making it more difficult and expensive for you to seek credit in the future.

Keep on top of your debt with tools like a spending app, which helps you track how you spend and save each month and manage upcoming bills.

Ways to Remove Collections from Your Credit Report

If collections on a debt you don’t owe shows up on your credit report, you may dispute your credit report with the three major credit reporting bureaus: Equifax, TransUnion, and Experian.

You’ll need to send a dispute letter that includes your contact information, a list of mistakes with account numbers, an explanation of how the information is incorrect, a request to have the collections removed, and supporting information about how the dispute should be reported. Note that if information changes on your credit report, it’s possible your credit score may drop after a dispute.

If you pay off a debt and it’s no longer in collections, you may send a letter to the agency asking them to remove the collections from your credit report. The collector may remove the information from your report as a courtesy, though they don’t have to.

Recommended: Closing a Credit Card With a Balance

Check Your Credit Reports Regularly

It’s a good idea to check your credit report annually. Make sure there are no errors on the report, and be on the lookout for evidence of credit card frauds or accounts that were opened fraudulently. You can receive a free credit report from each of the credit reporting bureaus once per year.

Recommended: Guide to Canceling a Credit Card Payment

The Takeaway

If collectors are asking you to pay up on a debt you don’t believe you owe, dispute it as soon as possible. In some cases, it may be a purchase or debt that slipped your mind, or it may be an error. If the debt is particularly difficult to prove or disprove, you may need to hire a lawyer who can help you settle the matter in court.

Regularly monitoring your credit score is one way to keep financial matters from slipping through the cracks. A money tracker app can also help. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all your balances, spending breakdowns, and credit score monitoring, and get other valuable financial insights.

FAQ

How do you fight a collections agency and win?

If a collections agency is trying to collect a debt you don’t owe, your best course of action is to gather information about the debt and send a dispute letter immediately asking for debt validation. This is sometimes enough to stop the collections process. But if a debt is difficult to prove or disprove, you may need to hire an attorney.

Can I dispute a debt sold to a collections agency?

Yes, you can dispute a debt sold to a collections agency.

What is the best thing to say when disputing a collection?

A dispute letter should say that you’re writing about a debt you don’t owe. It should also ask that the collector prove the debt or cease contacting you.

Photo credit: iStock/PeopleImages

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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The due diligence tax preparer penalty is a fine for income tax preparers who fail to meet due diligence requirements when preparing tax returns that claim certain credits or head of household filing status.

The IRS takes due diligence very seriously because fraudulent claims are becoming increasingly common. The agency even conducts “Knock and Talk” visits as part of its Preparer Compliance Program to educate preparers, discuss errors, and explain the risks of not providing accurate tax returns.

Let’s take a closer look at what due diligence for tax preparers means, how preparers should perform it, and the penalties for not following the rules.

What Is Due Diligence for Tax Preparers?

People use tax experts to prepare their income taxes for them because the experts know how to take advantage of tax rules. By claiming all possible tax credits or tax deductions, clients keep more of the money they earn rather than handing it over to the IRS.

U.S. income tax preparers must adhere to tax laws and conduct due diligence when they prepare tax returns for taxpayers who claim certain tax credits or head of household (HOH) filing status. HOH status gives an unmarried filer with a qualifying dependent tax advantages that a single filer does not have.

The IRS requires due diligence from tax preparers to make sure their clients really do qualify for the credits or HOH status because they will pay less tax to the IRS.

The credits that fall under due diligence are the following:

•   Earned income tax credit (EITC)

•   Child tax credit (CTC), additional child tax credit (ACTC), credit for other dependents (ODC)

•   American opportunity tax credit (AOTC)

•   Head of household (HOH) filing status

Recommended: What Are the Different Types of Taxes?

What Is the Due Diligence Tax Preparer Penalty for 2023?

Each failure on a return filed in 2023 carries a penalty of $560. If a preparer claims all four benefits on a return and fails to perform due diligence for each benefit, the penalty for that return is $2,240. The preparer can also be referred to the Office of Professional Responsibility, or even the IRS Criminal Investigation Unit, if their failure to comply is deemed willful. It’s also possible that the IRS may request the Department of Justice to seek an injunction to stop the preparer from preparing any future returns.

What Are the Four Due Diligence Requirements?

To comply with due diligence and avoid a penalty, the IRS requires a tax preparer to do the following:

Complete and Submit Form 8867

The form must be based on information obtained from the client. It can be submitted to the IRS with the e-Filed return or claim, or included in the filed return or claim.

Compute the Credits

The preparer must complete the appropriate worksheets for each applicable credit (such as those found in the instructions for Form 1040 or Form 8863) and keep records of the information and calculations used.

Conduct the Knowledge Test

The preparer must interview the client to verify that the information on income tax withholdings, earnings, dependents, and all relevant data are correct, consistent, and complete. The preparer must also keep a record of the interview.

Keep the Records for Three Years

Documents can be held in electronic or paper format.

Recommended: Your 2023 Tax Season Prep List

What Are Examples of a Due Diligence Penalty?

Let’s say a taxpayer who is preparing for tax season wants to claim the earned income tax credit (EITC). This credit is calculated by multiplying the taxpayer’s income by a percentage determined by the IRS. The amount of the credit phases out above certain income levels that vary depending on the number of qualifying children the taxpayer has. A due diligence penalty might be levied if the tax preparer makes one of the following common errors:

•   The tax preparer fails to verify if a child qualifies under the EITC in terms of their age, relationship, or residency requirements.

•   The tax preparer files claiming the client is single or head of household even though the taxpayer is married.

•   The tax preparer reports inaccurate income or expenses for the client.

The IRS gives more specific guidelines to tax preparers in Publication 4687. The publication gives specific examples of situations where the practitioner should ask further questions to fulfill the due diligence requirement. For example, “A 22-year-old client wants to claim two sons, ages 10 and 11, as qualifying children for the EITC.”

In this case, the IRS recommends the tax preparer does some further checking because the children’s ages are so close to the client’s age. The preparer is expected to make reasonable inquiries to verify the children’s relationship with the client.

Another example from the IRS: “A client has two qualifying children and wants to claim the EITC. She claims to have earned $20,000 in income from her Schedule C business and had no business expenses.”

The IRS considers it unusual for someone who is self-employed to have no business expenses. Due diligence expects the preparer to ask additional reasonable questions to determine whether their client is carrying on a business and whether the information about her income and expenses are correct.

Need help organizing your money? A spending app can help you create budgets, keep tabs on your spending, manage bills, and more.

Pros and Cons of the Due Diligence Penalty

The due diligence requirements demand extra work for tax preparers, such as conducting in-depth interviews and storing documents. However, preparers can establish policies and procedures with checklists and consistent practices, which should keep them organized and prevent them from falling foul of the IRS.

Pros

•   If the tax preparer can show they have “reasonable cause” for an understatement on the return, and the preparer acted in “good faith” while preparing the return, the preparer generally will not be penalized.

•   Following a due diligence checklist for every tax return ensures office procedures to minimize mistakes.

•   If a checklist is always followed, it is more likely that the preparer acts in good faith while preparing returns and will not be penalized.

Cons

•   Tax preparers may need to develop a system and a checklist for due diligence cases and follow it consistently.

•   Tax preparers need to keep meticulous records of interviews and documents.

•   Tax preparers must stay up to date with current and new requirements related to due diligence, as the IRS rulings change frequently to help reduce tax fraud and abuse.

The Takeaway

The IRS takes due diligence seriously when taxpayers are claiming certain tax benefits or head of household status. Therefore, it’s critical that tax preparers follow the due diligence rules and develop consistent processes and checklists to ensure they comply. Due diligence penalties are significant, and a preparer may even be referred to the Department of Justice and prevented from practicing. The due diligence requirements may mean extra work for tax preparers, such as conducting in-depth interviews, creating checklists, and storing documents. However, the extra work is well worth it to keep them organized and on the right side of the IRS.

It’s also important to make sure your finances are in order during tax season and beyond, and a money tracker app can help. The SoFi app connects your accounts in one convenient dashboard, allowing you to see your balances, spending breakdowns, and credit score monitoring. You also get valuable insights that can help you make progress toward your financial goals.

FAQ

What is the due diligence penalty for 2023?

The penalty for returns filed in 2023 is $560 for each failure on a return. If a preparer claims all four benefits on a return and fails to perform due diligence for each benefit, the penalty for that return is $2,240.

What happens to a paid preparer who fails to meet the due diligence requirements IRC 6695 G?

Under IRC 6695 G, the penalty in calendar year 2022 is $545 for each failure of a tax preparer to meet due diligence requirements and determine a taxpayer’s eligibility for the head of household filing status or the following credits:

•   Any dependent credit, including the Additional Child Tax Credit and Child Tax Credit

•   American Opportunity Credit

•   Earned Income Tax Credit

•   Lifetime Learning Credit

What happens if a tax preparer doesn’t meet the due diligence requirements?

In addition to facing penalties, a tax preparer who does not do due diligence will be referred to the Office of Professional Responsibility. If the failure is deemed willful, the preparer can be referred to the IRS Criminal Investigation, and the Department of Justice may take away the right for the preparer to work on any future returns.

Photo credit: iStock/fizkes

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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An entry-level position can help you get your foot in the door of a new industry or provide experience and on-the-job training to help you move up the ladder. Depending on the job, you may be required to work closely with colleagues, vendors, customers, or the general public. If you’re an introvert, all that face-to-face interaction could sound overwhelming and downright exhausting.

Luckily, there are a variety of entry-level jobs that require little human interaction and can still set you on the path to a satisfying career.

What Is an Entry-Level Job?

Entry-level jobs are roles that typically require minimal education or prior experience. They may be designed specifically for individuals just graduating from college who have higher academic qualifications, or they may not require any post-secondary education at all. Jobs that require a college education may offer a higher starting wage, though there are also high-paying trade jobs.

Some companies will require new entry-level hires to participate in on-site training to bring them up to speed on the skills they’ll need to complete the tasks required of them. Jobseekers may find an entry-level position in every industry, and they could land a fulfilling job that pays well.

When to Start Applying for Entry-Level Jobs

It’s common for recent high school or college graduates to apply for entry-level jobs. If you want to start work as soon as you finish school, you may consider applying to jobs a couple of months in advance of your graduation date.

But entry-level jobs aren’t only for people fresh out of school. Those hoping to switch career paths may want to apply for entry-level jobs to gain experience in their new field. Some retirees may also look for a part- or full-time role to pick up extra income, including work-from-home jobs.

Once you begin earning a wage, consider using a spending app to help you set a budget and track your income and spending.

Pros and Cons of an Entry-level Job With Little Human Interaction

The potential advantages and disadvantages of entry-level jobs for introverts will depend largely on your personality. As you’re hunting for a job, ask yourself what you want and need from a position. Here’s a look at some potential pros and cons.

Pros

•   A quiet workspace allows you to focus on the tasks at hand.

•   Fewer interruptions from bosses and coworkers who want your attention.

•   There’s less potential to get wrapped up in office politics.

•   Having fewer interactions with people can create a calmer atmosphere for those who get anxious interacting with others.

Cons

•   There’s potentially less opportunity to learn from bosses and coworkers.

•   You may spend more time troubleshooting issues on your own.

•   If you’re a people person, positions with little human interaction can feel isolating.

•   If you’re out of sight, you may be out of mind and miss out on opportunities that could advance your career.

Tips to Finding an Entry-level Job

Begin your job hunt by getting to know yourself. What industries are you interested in? And what skills do you already bring to the table?

Next, use an online job search engine. Some are quite large and will help you explore jobs across the country in many industries. But if you’re looking for something specific, you might try specialty job boards.

When applying for a job, send a resume that explains your education, experience, and skills. It’s also a good idea to write a cover letter that’s customized to the job you’re applying for.

Though it may not be appealing if you’re not a people person, you can also network with colleagues in your field of interest. The connections you make could help you find positions that may be available in your area, including jobs that pay daily.

10 Entry-level Jobs With Little Human Interaction

Looking for some ideas for potential jobs for antisocial people or roles that allow you to work with as few interactions as possible? Here’s a list of some possible careers to explore.

Accountant

Accountants are responsible for keeping and interpreting financial records and may help clients as they prepare for tax season.

Requirements: Accountants typically have a bachelor’s degree in accounting or a related field. They may also get licensed in certain fields to improve job prospects.

Annual median salary: $77,250

Job outlook: Employment is expected to grow 6% through 2031, which is nearly average for all occupations.

Actuary

Actuaries usually work with insurance companies, and they use mathematics, statistics, and financial theory to help analyze the potential cost of risk.

Requirements: You typically must have a bachelor’s degree with a strong background in math and statistics to become an actuary. And you must pass a series of exams to get certified.

Median annual salary: $105,900

Job outlook: Employment is expected to grow 21% through 2031, much faster than average.

Computer Programmer

Computer programmers write, change, and test code that applications and software need to run and function properly.

Requirements: Programmers generally need a bachelor’s degree as well as proficiency in one or more programming languages.

Median annual salary: $93,000

Job outlook: Employment is expected to decline 10% through 2031, though an estimated 9,600 jobs are projected to open up each year.

Graphic Designer

Graphic designers usually use software to create visuals that communicate ideas to consumers.

Requirements: Graphic designers may need a bachelor’s degree in graphic design and a portfolio that demonstrates their work.

Median annual salary: $50,710

Job outlook: Employment is expected to grow 3% through 2031, which is slower than average.

Medical Records Specialist

A medical records specialist processes, compiles, and maintains patient records.

Requirements: A high school diploma may be sufficient, but medical records specialists typically need a post-secondary certificate to enter the profession. Some might need an associate’s or bachelor’s degree.

Annual median salary: $46,660

Job outlook: Employment is expected to grow 7% through 2031, which is about as fast as average.

Surveyor

Surveyors use measurements to determine property boundaries. They may work in the office and the field, alone or in small teams.

Requirements: Surveyors typically need a bachelor’s degree, and they must be licensed.

Median annual salary: $61,600

Job outlook: Employment outlook is expected to show little or no change through 2031.

Technical Writer

As a technical writer, you write journal articles, instructional manuals, and other documents to communicate technical information clearly.

Requirements: Technical writers typically need a bachelor’s degree and some experience in science or engineering.

Median annual salary: $78,060

Job outlook: Employment is expected to grow 6% through 2031, which is about average for all occupations.

Truck Driver

If you long for the open road, you might consider becoming a truck driver who transports goods from one place to another.

Requirements: Truck drivers usually need to have a high school diploma and have attended truck driving school. They must also acquire a commercial driver’s license.

Median annual salary: $48,310

Job outlook: Employment is expected to grow 4% through 2031, which is nearly average for all occupations.

Veterinary Technologist or Technician

If you’d rather work with animals than people, you might consider becoming a veterinary technician. People in this position help run tests and may help diagnose animal injuries and illness.

Requirements: Veterinary technologists typically must complete a four-year post-secondary program, while technicians need a two-year associate’s degree. Both must take an exam to get credentialed, and they may need to be registered, licensed, and certified in the state where they work.

Median annual salary: $36,850

Job outlook: Employment is expected to grow 20% through 2031, which is much faster than average.

Web Developer

Web developers create and maintain websites for a variety of clients.

Requirements: Web developers may need only a high school diploma, while others benefit from having a bachelor’s degree.

Annual median salary: $77,030

Job outlook: Employment is expected to grow 23% through 2031, which is much faster than average.

The Takeaway

An entry-level position can help people new to a field gain valuable experience and training. These jobs are generally available in every industry, and some require little to no human interaction. If you’re an introvert or prefer to work alone, you have an array of options, including working as a computer programmer, accountant, graphic designer, surveyor, truck driver, or medical records specialist.

Regardless of the career you choose, you may find it helpful to use a money tracker app to organize your finances. With the SoFi Insights app, you can see all of your accounts in one convenient dashboard, including your balances, spending breakdowns, and credit score. You also get valuable financial insights that can help you make progress toward your goals.

FAQ

Is there a job where I don’t have to talk to people?

Yes, there are jobs where you can limit your interaction with other people, especially if you freelance or work for yourself.

What are the easiest jobs to get with no experience?

Entry-level positions are often designed for jobseekers with little to no prior experience. Frequently, these jobs will offer some sort of on-the-job training.

What are good jobs for people with social anxiety?

Jobs such as graphic designers, veterinary technicians, technical writers, and others that require little interaction with other people may be good for those with social anxiety.

Photo credit: iStock/supersizer

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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