How to Become a Tax Preparer

Tax preparers have a comprehensive knowledge of the federal tax code and Internal Revenue Service (IRS) procedures. To become one, you need a Preparer Tax Identification Number (PTIN) issued by the IRS. While not required, tax preparers typically have a tax preparer certificate or an associate or bachelor’s degree in accounting, business, taxation, or a similar field.

Earning a degree can also help you qualify for relevant professional certifications and endorsements, which some states require of tax preparers. Discover how to become one in this guide.

To receive compensation as a tax preparer, you need a PTIN. The IRS does not identify any specific educational requirements to qualify for this status. Focus on acquiring the knowledge you need to succeed as a tax professional through an associate, bachelor’s, and/or master’s program in accounting.

With a bachelor’s degree or higher, you will meet the educational requirements for other accounting licenses and certifications. This route gives you the flexibility to consider other paths or work as a tax preparer while pursuing advanced accounting careers.

As an alternative to an accounting degree, you could also combine tax-focused training with a degree in business, finance, taxation, or tax law.

Discover relevant degree programs:

No matter your location, you must have a PTIN to receive pay in exchange for preparing a tax return. Depending on your state, you may also need other credentials.

To obtain a PTIN, follow this basic process:

If your request is approved, the IRS will review your application and issue your PTIN through your online account. After receiving your PTIN, you will need to renew it annually.

Other steps apply if you live in a state that requires additional tax preparer licensing or documentation. Use these links for further information:

You will need a PTIN to launch your career as a tax preparer, but optional certifications can help you grow that career. Professional certifications also inspire confidence in your abilities and services, which may boost your ability to attract and retain clients.

For example, the IRS offers an enrolled agent (EA) designation. EAs can represent their clients in official dealings with the IRS. Certified public accountants (CPAs) and tax attorneys also share this ability.

You can also pursue other widely recognized certifications, including:

Each credential is subject to different eligibility guidelines and certification processes. In general, though, you will need to accrue several years of relevant professional experience and pass an examination to become certified.

As you research how to become a tax preparer, you should also know that PTIN requirements are waived for licensed CPAs. If you become a CPA, you can also work professionally as a tax preparer without additional documentation.

You do not need any specific experience level to obtain a PTIN from the IRS. However, your clients will expect expertise, which you can gain through experience. Consider accounting internships and supporting professional roles with taxation-facing duties. Examples of these roles include:

Alternatively, you can pursue a combination of education and certification before launching your career. Many certifying bodies, private education providers, community colleges, and degree-granting institutions offer programs that teach the knowledge and skills tax preparers need. You can then pursue one or more recognized professional certifications and market yourself that way.

Consider future growth prospects and job security for the profession, which both appear encouraging. First, explore the pros of the career path:

Then, consider the following potential downsides and disadvantages:

As you plan your career, remember that demand for your services may not be as high outside of tax season. Many tax preparers work part time or offer their services on the side as they pursue other careers in accounting, business, and tax law.

You can use several strategies to find your first tax preparer job. Many accounting programs — which make excellent educational backgrounds for tax preparers — include internships and practicums. These experiences allow you to make valuable professional connections that could help you down the line.

If you have the right credentials, large companies that specialize in tax preparation may hire you. Other options include joining professional organizations, attending job fairs, and seeking opportunities on specialized job boards.

These four job boards may help your search:

After working as a tax preparer, you can advance to a tax consultant or tax manager role. Both positions build on tax preparation experience to involve hands-on strategy and more complex applications of technical tax knowledge.

Consider the following elements of working as a tax consultant:

Tax managers can work as department leaders and independent professionals. Here is a snapshot of what you might expect by pursuing this role:

Find out more about these careers: