Written by

Tara Farmer

January 19, 2026

Edited by

Kristen Cramer

How to become a tax preparer

Thinking about becoming a tax preparer? You're considering a career path that's in high demand and offers flexibility, meaningful client relationships, and the chance to help people navigate one of life's most stressful obligations. Whether you're looking for seasonal work or a full-time career, tax preparation offers multiple entry points and growth opportunities.

The following guide walks you through exactly what it takes to become a tax preparer, from getting your first credential to building a thriving practice.

What is a tax preparer?

Before investing time and money, make sure this career aligns with your interests and skills. Tax preparers help individuals and businesses file accurate tax returns while maximizing deductions and credits. Their daily responsibilities include:

• Interviewing clients and gathering financial documents like W-2s, 1099s, and receipts

• Analyzing income, expenses, and previous tax returns for accuracy and completeness

• Identifying deductions, credits, and tax-saving opportunities to minimize client liabilities

• Using specialized software to prepare and electronically file federal and state returns

• Answering client questions about filing requirements, tax law changes, and deadlines

• Responding to IRS notices and representing clients during audits when qualified

The work requires strong attention to detail, excellent communication skills, and the ability to stay calm under pressure during busy tax season. You'll build lasting relationships with clients who depend on your expertise.

Step 1: Meet the basic education requirements

The good news? You don't need a college degree to become a tax preparer. The federal minimum requirement is simply a high school diploma or GED, along with a valid Preparer Tax Identification Number (PTIN).

However, many successful preparers pursue additional education to deepen their knowledge and build credibility faster. Relevant fields of study include:

• Accounting

• Finance

• Business administration

• Taxation

• Economics

An associate or bachelor's degree in one of these areas can give you a competitive advantage, especially if you plan to advance to a credentialed role like Certified Public Accountant (CPA) or Enrolled Agent (EA). But if you don't have a degree, don't worry! Hands-on training and experience are equally valuable starting points.

Step 2: Complete a tax preparation course

Formal training helps you learn how to prepare taxes accurately and ethically. Most introductory tax preparation courses run 60 to 80 hours, often from late summer through fall to prepare for the next tax season.

You'll typically learn about:

• Filing requirements and taxpayer obligations

• Common IRS forms and schedules (1040, W-2, 1099, Schedule C, and more)

• Income reporting and adjustments

• Deductions, credits, and exemptions

• Ethics and professional standards

• State-specific tax issues

Courses are offered through community colleges, vocational schools, and tax companies such as H&R Block or Jackson Hewitt, as well as reputable online providers. Expect to spend $200 to $1,000 depending on the depth of the program.

Step 3: Apply for your PTIN

Anyone who prepares or assists in preparing federal tax returns for compensation must have a Preparer Tax Identification Number (PTIN) issued by the IRS. It's your official credential to prepare returns professionally. The application process is straightforward and takes about 15 minutes online.

To get your PTIN:

1. Go to the IRS Tax Professional PTIN System.

2. Click "Renew or Register."

3. Provide:

   • Your Social Security number

   • Contact and personal information

   • Details from your most recent tax return

   • Any professional credentials (CPA, attorney, EA)

   • Disclosure of any felony or tax compliance issues

4. Pay the $18.75 fee.

Your PTIN must be renewed annually, even if you hold another professional license.

Step 4: Get your EFIN for electronic filing

To electronically file (e-file) tax returns with the IRS, you need an Electronic Filing Identification Number (EFIN). While your PTIN allows you to prepare returns, your EFIN enables you (or your firm) to file them online, which virtually all clients now expect.

The EFIN application process takes up to 45 days, so start early. You'll need to:

• Create an IRS e-Services account.

• Complete the Application to Become an Authorized IRS e-file Provider.

• Provide identifying information for your firm and each responsible official.

• Submit fingerprints unless you already hold certain professional credentials.

Your EFIN remains active as long as your firm complies with IRS rules, though you must update it if your business information changes.

Step 5: Choose your credential path

Now you need to decide what level of tax preparer you want to become. Different credentials offer different opportunities and representation rights before the IRS.

What are representation rights?

Representation rights determine whether you can advocate for clients before the IRS during audits, appeals, and collection matters.

• Limited rights mean you can represent only the clients whose returns you personally prepared and signed, and only before specific IRS employees (e.g., revenue agents).

• Unlimited rights—held by EAs, CPAs, and attorneys—allow full representation before the IRS for any client and any tax matter.

Most beginners start with just a PTIN and later pursue the Enrolled Agent credential to gain unlimited rights without needing a CPA license or law degree.

How to become an enrolled agent

The EA credential is the highest certification the IRS awards. To earn it, you must:

1. Pass all three parts of the Special Enrollment Examination (SEE) within two years:

   • Part 1: Individual tax returns (individuals, estates, and trusts)

   • Part 2: Business tax returns (partnerships, corporations, and specialized entities)

   • Part 3: Representation, practices, and procedures before the IRS

2. Pass a suitability check, which reviews your tax compliance and criminal background.

Once licensed, EAs must complete 72 hours of continuing education every three years, with a minimum of 16 hours annually.

Step 6: Check your state requirements

Federal rules apply nationwide, but some states add their own tax preparer licensing or registration requirements. Generally, these depend on where your client resides, not where your office is located.

Research your state's requirements through your state tax board or department of revenue website. Budget extra time and money if you're in a regulated state.

Step 7: Invest in professional tax software

Professional tax preparation software is essential for accuracy and efficiency. Consumer versions (like TurboTax or TaxAct for individuals) are not designed for professional use or client management.

When evaluating software, consider:

• Ease of use and training resources

• E-filing and integration features

• Range of supported forms

• Client data security

• Cost and annual update fees

Popular options include Drake Tax, TaxSlayer Pro, ProSeries, and Lacerte. Most offer free trials or demos, so test multiple platforms before committing. Factor in the cost of annual subscriptions when planning your business finances.

Step 8: Gain practical experience

Even with training and credentials, nothing replaces real-world experience. Many new preparers start by working for established tax preparation companies during their first tax season.

This apprenticeship-style approach helps you:

• Learn workflows and client management.

• Gain exposure to diverse return types.

• Observe how experienced professionals handle client questions and compliance issues.

After one or two tax seasons, you'll have the confidence to open your own practice or continue within a firm for steady income.

Step 9: Build your client base

Once you have your PTIN, EFIN, and experience, it's time to grow your client list. Start with simple returns (e.g., Form 1040 with W-2 income) and expand to more complex returns as your expertise grows.

Some effective ways to build your practice:

• Network within your community through local business groups.

• Ask satisfied clients for referrals and testimonials.

• Offer services to underserved populations initially to build your portfolio.

• Create a professional website, business profiles on Talo.com and Google, and a social media presence.

• Partner with complementary businesses like bookkeepers or financial advisors.

• Advertise locally during tax season.

Many successful preparers start part-time while maintaining other employment, then transition to full-time tax preparation as their client base grows.

Continuing education & professional development

Tax laws change constantly, so staying informed is crucial. Continuing education not only keeps you compliant but also builds trust with clients.

Effective ways to stay current include:

• Joining the National Association of Tax Professionals (NATP) or National Association of Enrolled Agents (NAEA)

• Attending webinars, conferences, or IRS update sessions

• Subscribing to professional tax research platforms

• Following IRS announcements and updates

• Taking specialized courses in niche areas like business taxation or international tax

Year-round opportunities for tax preparers

While most tax work happens between January and April, many preparers build year-round practices by offering additional services such as:

• Tax planning and consultation

• Quarterly estimated tax payments for self-employed clients

• Bookkeeping and accounting services

• Business tax return preparation with different deadlines

• IRS audit representation and resolution

• Financial planning related to taxes

• Payroll processing services

• Business consulting

Some professionals prefer seasonal work and use the off-season for travel or other projects, while others grow full-time practices that provide consistent income. Choose the model that best fits your lifestyle and financial goals.

FAQs about becoming a tax preparer

How long does it take to become a tax preparer?

With a high school diploma, you can complete tax preparation training and obtain your PTIN within 1 to 3 months. The EFIN process adds about 4 to 6 weeks. However, becoming truly proficient typically takes at least two full tax seasons of hands-on experience.

How much do tax preparers make?

Your income as a tax preparer depends on your credentials, experience, location, and business model. The average annual salary ranges from $51,000 to $60,000, with entry-level positions starting around $30,000 and experienced preparers earning $85,000 or more.

Enrolled agents and CPAs typically fetch higher fees. Many preparers work seasonally during tax season and earn most of their annual income from January through April. Others offer year-round services like bookkeeping and tax planning to create steady income throughout the year.

Can I prepare taxes in multiple states?

Yes, you can prepare federal tax returns for clients in any state once you have your PTIN. However, if you're preparing state returns for residents of California, Connecticut, Illinois, Maryland, Nevada, New York, or Oregon, you may need to meet those states' specific registration or licensing requirements.

The requirements typically apply based on where your client resides, not where your business is located. If you plan to serve clients in multiple regulated states, you'll need to comply with each state's rules, which can involve additional education, examinations, and fees.