WhatPays.org

Self-employment method

Document Preparation Services

97,350 people filed as a nonemployer business under this industry code in 2022 — no payroll, no employees, just them. These are gross receipts reported to the IRS, before any expense is taken out.

$9,700

Median GROSS RECEIPTS for the year — money in, before rent, materials, fuel, insurance or tax. This is not take-home pay.

51.24%

Share who grossed under $10,000 for the whole year — before expenses.

$4,094–$21,157

The middle half, in gross receipts. A quarter of filers took less than the lower figure.

Source: US Census Bureau, Nonemployer Statistics 2022 · view

How often it does not work out

Of the 97,350 people who filed under this code in 2022, 51.24% grossed under $10,000 for the entire year — before a single expense was deducted.

That is a floor, not an estimate. Census publishes GROSS RECEIPTS, not net income. Everyone inside that share earned less than the figure suggests once rent, materials, mileage, insurance and self-employment tax came out — and filers who grossed well above the threshold may still have netted nothing. The true share of people who earn nothing meaningful from this is higher than the number above, never lower.

Denominator: establishments_total = 97,350 · US Census Bureau, Nonemployer Statistics 2022 · view

Every filer, by what they grossed

The full receipts distribution as Census publishes it. The median above is interpolated inside whichever band contains the 50th percentile, so this table is what that figure is derived from.

Gross receipts for the year Filers Share
Under $5,000 29,722 30.5%
$5,000 to $9,999 20,164 20.7%
$10,000 to $24,999 31,092 31.9%
$25,000 to $49,999 10,476 10.8%
$50,000 to $99,999 3,929 4.0%
$100,000 to $249,999 1,525 1.6%
$250,000 to $499,999 327 0.3%
$500,000 to $999,999 93 0.1%
$1,000,000 to $2,499,999 22 0.0%

Who this suits

The midpoint filer took $9,700 in gross receipts for the year. Before expenses. That is not a low income from this work — for half the field it is not income from this work at all, it is a hobby with a tax form attached.

97,350 people filed under this code, almost none of whom appear in any employment statistic. Document Preparation Services is part of the economy salary surveys simply do not see.

2.0% of filers grossed $100,000 or more — a small minority, but a real one. That group is who the aspirational version of this work describes, and they are roughly one in thirty.

Administrative and support services suit people who can win recurring contracts rather than one-off jobs, because the whole economics turn on route density and repeat work.

There is no training requirement to file under this code — which is precisely why so many people appear in the bottom bands. Entry being free is not the same as the work being viable.

Who should not do this

The top quarter of Document Preparation Services earns 5.2x the bottom quarter — under $4,094 against over $21,157, a spread of $17,063. Distributions this stretched are usually two different jobs sharing one label, and any average across them means little.

The bottom quarter of Document Preparation Services earns under $4,094 — $45,926 below the $50,020 a typical American job pays. Entering at the bottom and waiting is a live risk here, not a theoretical one, and some people never leave that quarter.

Do not start this on one-off jobs. Without recurring contracts the acquisition cost eats the margin every time.

51.2% of 97,350 filers — 49,882 people — grossed under $10,000 in 2022. More than half of everyone who tried Document Preparation Services took in less than $10,000 before any expense came out.

Read that as a floor, not an estimate. Census publishes gross receipts, not net income, so everyone inside that share earned less than $10,000 suggests once costs came out — and filers who grossed well above $10,000 may still have netted nothing.

What the spread tells you

A ratio of 5.2x between the quarters is the signature of a winner-take-most distribution. $9,700 is a real number about a real population, but nobody entering Document Preparation Services should plan around it.

In cash terms the middle half of Document Preparation Services runs $4,094 to $21,157 — $17,063 a year between the 25th and 75th percentiles, against a midpoint of $9,700.

Getting to $21,157, the 75th percentile, is worth $11,457 a year more than the $9,700 midpoint and $17,063 more than the $4,094 a quarter of Document Preparation Services settle for.

Per hour at a standard full-time year that is $4.66 at the midpoint for Document Preparation Services, $1.96 at the 25th percentile and $10.17 at the 75th, against $24.04 for the typical American job.

Counted straight off the return: 29,722 filers grossed under $5,000, 20,164 took $5,000 to $9,999, 31,092 took $10,000 to $24,999, 1,967 cleared $100,000 and 442 cleared $250,000.

What these figures are, and what they are not

Every figure above is GROSS RECEIPTS, before expenses — money that arrived before rent, materials, fuel, insurance and self-employment tax. The $9,700 midpoint for Document Preparation Services is not take-home pay and is not comparable to a $9,700 salary.

With no unpaid-hours or cost data for Document Preparation Services, the hourly figure is $9,700 over a 2,080-hour year — a unit conversion, not an adjustment.

How this is calculated · Self-employment failure rates · Look up something else