How to become a tax preparer: Your complete guide
To become a tax preparer, you must apply for a Preparer Tax Identification Number (PTIN) from the IRS, complete basic training, and, if you want more credibility, pursue certifications like Enrolled Agent (EA) or Certified Public Accountant (CPA). With tax laws becoming more complex, demand for skilled preparers continues to grow. According to the Bureau of Labor Statistics, the median salary for tax preparers is $51,080, and the IRS reports that 80+ million Americans use paid preparers each year.
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What Does a Tax Preparer Do?
A tax preparer helps individuals and businesses file accurate returns and stay compliant with IRS rules.
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Gather financial documents
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Calculate taxable income
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Identify deductions and credits
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File tax returns on time
For example, a preparer may help a small business owner track expenses and legally reduce their tax bill by thousands of dollars.
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How to Become a Tax Preparer in Tampa, Florida
Steps to become a tax preparer in Tampa:
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Obtain a PTIN from the IRS.
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Complete tax preparer training.
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Gain experience through internships or firms.
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Stay updated on Florida-specific tax laws.
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Consider certification (EA, ATP, CPA).
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Register your business if self-employed.
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Follow ethical standards & client confidentiality.
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Decide between starting your own practice or joining a firm.
SK Financial CPA served Tampa, Florida for more than 23 years, helping 15,000+ clients and preparing 20,000+ tax returns. Our 5 star reviews show our commitment to quality. Many new tax preparers in Florida gain real-world experience by training with firms like SK Financial, where mentorship and hands-on learning provide a strong career foundation.
How to Get a PTIN (Preparer Tax Identification Number)
A Preparer Tax Identification Number (PTIN) is required for anyone preparing federal tax returns for compensation. To obtain a PTIN, visit the IRS PTIN application page, complete the application with your personal and tax compliance details, and submit it to receive your PTIN instantly. This number must be renewed every year and is free of charge. Even if you hold a Certified Public Accountant (CPA) or Enrolled Agent (EA) certification, you still need a PTIN to legally file tax returns.
Tax Preparer Certification Options
Preparers with credentials such as EA or CPA typically charge 30–40% more than non-certified preparers because clients value the extra expertise and IRS representation rights.
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Enrolled Agent (EA)
Offered by the IRS, this is the highest credential a tax preparer can earn. EAs have unlimited representation rights before the IRS, meaning they can represent clients in audits, collections, and appeals. To become an EA, you must pass a three-part Special Enrollment Exam (SEE) covering individual and business tax regulations.
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Accredited Tax Preparer (ATP)
This certification, issued by the Accreditation Council for Accountancy and Taxation (ACAT), is best for those focusing on individual tax return preparation. The ATP exam tests knowledge of 1040 tax filings, tax planning, and ethics, making it a valuable credential for preparers serving individuals and small businesses.
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Certified Public Accountant (CPA)
A Certified Public Accountant (CPA) is the most in-demand certification for tax and accounting professionals. CPAs can handle tax preparation, auditing, and financial advisory services, making them highly valuable in the industry. To become a CPA, professionals must pass a challenging four-part exam, meet state licensing requirements, and complete ongoing education to stay certified. At SK Financial CPA, our experienced CPAs help businesses and individuals understand difficult tax laws, maximize deductions, and ensure IRS compliance. Since CPAs have unlimited rights to represent clients before the IRS, they can assist in audits and tax disputes. With their expert knowledge and high earning potential, becoming a CPA is a smart career move for tax preparers looking to expand their skills and credibility.
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IRS Annual Filing Season Program (AFSP)
This voluntary IRS program provides continuing education and a Record of Completion, giving tax preparers limited representation rights before the IRS. AFSP participants do not have unlimited representation rights like EAs but can interact with the IRS on behalf of clients whose returns they prepared.
Earning one or more of these certifications can help tax preparers stand out from competitors, increase client trust, and open up more advanced tax preparation opportunities.
IRS E-File Requirements & How to Get an EFIN
To electronically file tax returns, tax preparers need an Electronic Filing Identification Number (EFIN). The process involves registering for IRS e-Services, submitting an EFIN application, undergoing a background check and fingerprinting, and waiting for IRS approval, which can take up to 45 days. Any tax preparer who files more than 10 tax returns per year is required to e-file.
How Much Do Tax Preparers Make?
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Entry-level preparers earn $30,000–$50,000 annually.
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Experienced professionals make $50,000–$75,000.
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Certified EAs and CPAs earn $80,000–$120,000.
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Self-employed preparers can exceed $100,000+, depending on clients.
According to the Bureau of Labor Statistics, the median salary for tax preparers in the U.S. is $51,080.
Best Tax Software for Tax Preparers
Best professional tax software:
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UltraTax CS – full features for firms
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Drake Tax – affordable + advanced
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ProSeries Professional – popular for individuals
- Lacerte Tax – great for complex business returns
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Benefits of Becoming a Tax Preparer
Key benefits include:
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Flexibility (self-employment options)
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Strong earning potential
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Helping people with real financial challenges
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Continuous learning from changing tax laws
Conclusion
Becoming a tax preparer is a rewarding career with high demand and growth potential. By earning your PTIN, pursuing certifications, and gaining experience, you can build a trusted practice that serves individuals and businesses alike.
If you’re in Tampa and want to learn from experienced professionals, SK Financial CPA is ready to guide you with mentorship and career opportunities.
FAQs
Do I need a degree to become a tax preparer?
No, a degree is not required, but a background in accounting, finance, or business can be beneficial. Many tax preparers take tax preparation courses or obtain certifications like the IRS Annual Filing Season Program (AFSP) or Enrolled Agent (EA).
How much does a tax preparer make?
Tax preparer salaries vary by experience, location, and certification. Entry-level preparers earn $30,000 - $50,000 per year, while experienced professionals earn $50,000 - $75,000. Certified EAs and CPAs make $80,000 - $120,000, and self-employed tax preparers can earn $100,000+ depending on their client base.
What certifications improve credibility as a tax preparer?
Certifications help build credibility and increase earnings. The top options include Enrolled Agent (EA) for IRS representation, Accredited Tax Preparer (ATP) for personal tax services, and the IRS Annual Filing Season Program (AFSP) to enhance knowledge.
How do I get a PTIN from the IRS?
A PTIN (Preparer Tax Identification Number) is required to prepare taxes for compensation. To obtain it, visit the IRS PTIN Registration Portal, create an account, enter your personal and professional details, and submit your application. PTINs must be renewed annually.
What tax software do professionals use?
Professional tax preparers use UltraTax CS, Drake Tax, ProSeries Professional, and Lacerte Tax for efficient filing, compliance, and client management. These software programs offer advanced tools for accurate tax return preparation.
How long does it take to become a tax preparer?
It can take as little as two to four weeks to become a tax preparer by obtaining a PTIN from the IRS, completing a basic tax preparation course, and gaining practical experience through internships or entry-level roles.
What education do I need to become a tax preparer?
To become a tax preparer, there isn't a strict requirement for a specific degree. However, having a background in accounting, finance, or a related field can be incredibly beneficial. Many aspiring tax preparers start by taking tax preparation courses offered by various institutions, which cover essential topics such as tax laws, filing procedures, and ethics.
Do I need to obtain a certification to become a tax preparer?
While certification is not mandatory to become a tax preparer, professional certifications such as the Registered Tax Return Preparer (RTRP) can significantly enhance your credibility and expertise. These certifications are evidence of your knowledge and skills in tax preparation, making you more attractive to potential clients or employers.
How do I apply for a Preparer Tax Identification Number (PTIN)?
Applying for a Preparer Tax Identification Number (PTIN) is a mandatory step in how to become a tax preparer. You can apply for a PTIN online through the Internal Revenue Service (IRS) website. The process is straightforward and critical in becoming a recognized tax preparer.
Are there any state-specific requirements to become a tax preparer?
Yes, some states have additional requirements for tax preparers, including education, certification, or registration prerequisites. It's crucial to research and comply with the regulations in your state to ensure you're eligible to practice as a tax preparer.
How can I gain practical experience in tax preparation?
Gaining hands-on experience is a vital part of becoming a tax preparer. This can be achieved through internships or entry-level positions at accounting firms or tax preparation services. Such opportunities allow you to apply your theoretical knowledge in real-world scenarios, dealing with tax preparation tasks.
How important is continuing education for a tax preparer?
Continuing education is vital for tax preparers due to the ever-changing nature of tax laws and regulations. Enrolling in continuing education courses helps you stay updated on the latest tax laws, ensuring you can provide the best service to your clients.
Can I become a tax preparer without a background in accounting or finance?
Yes, it's possible to become a tax preparer without a background in accounting or finance. While such a background can be helpful, many successful tax preparers have transitioned from different fields. The key is to complete the necessary tax preparation education and gain practical experience.
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