What you need to do to become a tax preparer

Becoming a tax preparer does not require a four-year degree, but it does require passing a federal test and registering with the IRS. The path depends on how much tax work you want to do. If you only prepare taxes for a few people or family members, you may not need any credential. If you want to prepare taxes for paying clients, you must pass the Preparer Tax Identification Number (PTIN) exam and register with the IRS. If you want to represent clients before the IRS in disputes, you need a higher credential: either a Certified Public Accountant (CPA) license, an Enrolled Agent (EA) credential, or a law degree.

The fastest route to paid tax work is the PTIN, which requires passing a single exam. The EA credential takes longer but gives you more authority to represent clients. A CPA license requires the most education and testing but opens the widest range of accounting work beyond taxes.

Key Takeaways

  • You must obtain a PTIN and register with the IRS before you can charge money to prepare taxes for other people.
  • The PTIN requires passing the Registered Tax Return Preparer (RTRP) exam, which covers federal tax law and ethics; no specific education is required to sit for it.
  • An Enrolled Agent credential allows you to represent clients before the IRS and typically takes six months to two years to earn after passing three exams.
  • A CPA license requires a bachelor's degree, passing the Uniform CPA Exam, and meeting your state's experience requirements, which usually takes three to five years total.
  • You can prepare taxes without any credential only if you do not charge money or if you prepare only for family members and close friends.

The PTIN: The minimum requirement for paid tax preparation

If you want to prepare tax returns for clients and charge a fee, you must have a PTIN issued by the IRS. The PTIN is not a license — it is a registration number that identifies you to the IRS as someone who prepares returns. You renew it every year, and the renewal process includes paying a fee (currently $31 per year, though this can change) and confirming your information with the IRS.

To get a PTIN, you must pass the Registered Tax Return Preparer (RTRP) exam. This is a computer-based test administered by Prometric, the same company that runs many professional licensing exams. The exam covers federal income tax law, filing requirements, deductions, credits, and ethics. You do not need any formal education or work experience to sit for it — you can study on your own using IRS materials and third-party study guides. The exam costs around $120 to $150 (price varies by test center), and you can retake it if you do not pass. Most people spend two to four months studying before attempting it.

Once you pass the RTRP exam, you apply for your PTIN through the IRS website. The application takes about 15 minutes and requires your Social Security number, contact information, and confirmation that you have passed the exam. The IRS issues your PTIN immediately upon approval, usually within a few days. You can then begin preparing returns for clients and charging fees.

Enrolled Agent: The credential that lets you represent clients

An Enrolled Agent (EA) is a tax professional authorized by the IRS to represent clients in tax matters — including audits, appeals, and disputes with the IRS. An EA can do everything a PTIN holder can do, plus represent clients before the IRS without needing a lawyer or CPA present. If you want to build a tax practice where you handle client disputes or complex tax situations, an EA credential is valuable.

To become an EA, you must pass three separate exams: the Special Enrollment Examination (SEE) Part 1 (individual income tax), Part 2 (business income tax), and Part 3 (representation, practice, and procedure). You can take the exams in any order and space them out over time — there is no requirement to pass them all at once. Each exam costs around $40 to $50. Most people take three to six months to prepare for all three exams, though some study longer. You do not need a degree or prior work experience to sit for the EA exams.

After you pass all three parts, you apply for your EA enrollment through the IRS. The application requires proof that you passed all three exams, your Social Security number, and a background check. The IRS processes EA applications within four to six weeks. Once approved, you receive an EA certificate and can represent clients before the IRS. Like the PTIN, you must renew your EA status annually, which requires paying a fee (currently $31 per year) and meeting continuing education requirements (24 hours of approved tax education per year).

CPA license: The broadest credential for accounting work

A Certified Public Accountant (CPA) is a state-licensed professional who can prepare taxes, audit financial statements, and provide accounting and business advice. A CPA can do everything an EA can do, plus work on audits and provide broader accounting services. The CPA path takes longer than the EA path because it requires a bachelor's degree and more extensive testing, but it opens more career options beyond tax preparation.

To become a CPA, you must meet your state's education requirement (usually 150 college credit hours, which is more than a typical four-year degree), pass the Uniform CPA Exam (a four-part test administered by the AICPA), and meet your state's experience requirement (usually 1,000 to 2,000 hours of accounting work under a licensed CPA). The entire process typically takes three to five years. The CPA exam costs around $900 to $1,000 total for all four parts, and you can retake any part you do not pass. Most states also charge a licensing fee (typically $100 to $300) and require annual renewal with continuing education.

The advantage of a CPA license is that it is recognized across all 50 states and opens doors to audit work, forensic accounting, and management consulting — not just tax preparation. If you think you might want to do more than taxes, a CPA is worth the extra time and cost.

No credential required: When you can prepare taxes without registration

You do not need a PTIN, EA, or CPA if you prepare taxes without charging money. You can prepare returns for family members, friends, or community members at no cost without any IRS registration. Many people do this through volunteer tax programs like VITA (Volunteer Income Tax Assistance) or AARP Tax-Aide, which provide free tax preparation to low-income households. These programs train volunteers and provide oversight, but they do not require you to hold a PTIN or any other credential.

You also do not need a credential if you prepare taxes only for yourself or your spouse. However, the moment you charge a fee — even a small one — you must have a PTIN. The IRS defines "compensation" broadly: it includes money, gift cards, meals, or anything of value. If someone offers to pay you in any form, you need registration.

Study materials and exam preparation

The IRS publishes free study materials for the RTRP exam on its website, including Publication 4012 (Taxation of Individuals) and other tax guides. Many people combine these with third-party study guides from publishers like Kaplan, Bisk, or Surgent, which cost $100 to $300 and include practice exams and video lessons. For the EA exams, the AICPA (American Institute of Certified Public Accountants) publishes official study materials, and many tax education companies offer EA prep courses.

Community colleges and online platforms like Coursera and Udemy also offer tax preparation courses, though these are educational rather than exam-focused. Some cost nothing; others range from $50 to $500. If you are preparing for the CPA exam, most people enroll in a formal CPA review course (like Becker, Roger CPA, or Surgent), which costs $1,500 to $3,000 and includes structured lessons, practice exams, and instructor support.

Work options after you become a tax preparer

Once you have a PTIN, you can work as an independent tax preparer, start your own tax preparation business, or work for an accounting firm, tax preparation chain, or financial services company. Many tax preparers work seasonally during tax season (January through April) and do other work the rest of the year. Others build year-round practices by offering bookkeeping, payroll, or business tax services.

Tax preparation chains like H&R Block and Jackson Hewitt hire seasonal and year-round preparers and provide training. Working for a chain is a good way to build experience and client base before starting your own practice. Independent preparers typically charge $150 to $500 per return depending on complexity, location, and their experience. An EA or CPA can charge more because they can handle complex situations and represent clients before the IRS.

Frequently Asked Questions

Do I need a high school diploma or college degree to become a tax preparer?

No. To get a PTIN and prepare taxes, you do not need any formal education — only the ability to pass the RTRP exam. However, a CPA license requires a bachelor's degree with specific accounting coursework. An EA credential has no education requirement.

How long does it take to become a tax preparer?

If you pursue a PTIN, you can study and pass the exam in two to four months. An EA typically takes six months to two years (three exams). A CPA takes three to five years because of the degree requirement and experience hours. The timeline depends on how much time you spend studying and whether you pass exams on your first attempt.

Can I prepare taxes part-time while working another job?

Yes. Many tax preparers work seasonally during tax season and do other work the rest of the year. You can obtain a PTIN and build a small practice on the side. However, you must still register with the IRS and renew your PTIN annually, even if you prepare only a few returns per year.

What is the difference between a PTIN and an EA?

A PTIN allows you to prepare and file tax returns for clients. An EA can do that plus represent clients before the IRS in audits and disputes. If you only want to prepare returns and do not plan to handle client disputes, a PTIN is sufficient. If you want to represent clients or handle complex tax situations, an EA is the next step.

How much does it cost to become a tax preparer?

A PTIN costs about $31 per year for registration and $120 to $150 for the exam. An EA costs roughly $120 to $150 for three exams plus $31 per year for renewal. A CPA costs $900 to $1,000 for the exam, plus college tuition (which varies widely), plus state licensing fees. Study materials add $100 to $3,000 depending on what you choose.