So, Is Becoming a Tax Preparer Actually Worth It?
Short answer? For a lot of people, yes. Really yes.
Here’s the deal. The IRS processed over 275 million tax returns in 2025. And every single one of those returns needed someone to prepare it — whether that was the taxpayer themselves, a piece of software, or a real live human being. The demand is massive, and it’s not going away.
The average tax preparer in the U.S. pulls in around $55,000 to $60,000 a year as of 2026, according to Bureau of Labor Statistics data. But that’s just the average. Experienced preparers in high-cost areas routinely clear $80,000+. And if you build your own client base? Six figures is absolutely doable.
But before you quit your day job, let’s walk through what this career actually looks like — the money, the work, the downsides, and exactly how to get started.
What Does a Tax Preparer Actually Do?
A tax preparer helps individuals and businesses file their annual tax returns with the IRS and state tax agencies. That’s the simple version.
In practice, it means sitting down with a client (or their documents), sorting through W-2s, 1099s, investment income, deductions, credits, and everything else that makes up someone’s financial year. Then you put it all together in a return that’s accurate and gets them the best outcome possible.
Some tax preparers work for big chains like H&R Block or Jackson Hewitt. Others work for local accounting firms. And a growing number are going independent — working from home, building their own brand, and keeping 100% of what they earn.
The Different Types of Tax Preparers
Not all tax preparers are the same. Here’s a quick breakdown:
- Uncredentialed Preparers: No license required in most states. Can prepare returns after getting a PTIN (Preparer Tax Identification Number) from the IRS. This is where most people start.
- Enrolled Agents (EA): Licensed by the IRS. Can represent clients before the IRS in audits and collections. Requires passing a three-part exam (the SEE exam) or having 5 years of IRS experience.
- Certified Public Accountants (CPA): State-licensed accountants who can do taxes plus a lot more. Requires 150 college credits, passing the CPA exam, and work experience.
- Tax Attorneys: Lawyers who specialize in tax law. Overkill for most basic tax prep, but valuable for complex situations.
You do not need to be a CPA or an attorney to be a tax preparer. Most people start as uncredentialed preparers and then level up from there.
The Money: How Much Can You Really Make?
Let’s talk numbers, because that’s probably why you’re reading this.
Here’s a realistic breakdown of tax preparer earnings in 2026:
- Entry-level (Year 1): $30,000 – $45,000. You’re learning. You might work for a chain that pays hourly ($18–$25/hour during tax season).
- Mid-level (2-4 years): $50,000 – $70,000. You’ve got regular clients coming back. You’re faster and more confident.
- Experienced (5+ years): $70,000 – $100,000+. Especially if you’re independent or have specialty niches.
- Independent/Solo Practice: $80,000 – $150,000+. The sky’s the limit, but it takes time to build a client base.
Here’s what a lot of people don’t realize: tax preparers charge anywhere from $200 to $500+ per return for individual clients, and even more for business returns. If you prepare 200 returns during tax season at an average of $300 each, that’s $60,000 in about four months.
Not bad for seasonal work.
The Pros: Why People Love This Career
Low Barrier to Entry
This is probably the single biggest advantage. You don’t need a college degree. You don’t need a license (in most states). You don’t need years of experience. You just need a PTIN from the IRS — which costs $35.81 and takes about 15 minutes to apply for online.
Compare that to becoming a CPA (years of school + a brutal exam + experience requirements) or a lawyer (three years of law school + the bar exam). Tax preparation is one of the fastest paths to a professional income.
Quick Training
You can complete a basic tax preparation course in 8 to 12 weeks. Programs like the ones offered by H&R Block, the National Tax Training School, or online platforms like Coursera and Udemy can get you ready to start preparing returns in a matter of months, not years.
If you’re looking for a solid starting point, the IRS Volunteer Income Tax Assistance (VITA) program is free. You get trained and then practice on real returns for people who need help. It’s an incredible way to learn without spending a dime.
Flexible Work Options
Tax preparation is one of the most flexible careers out there. You can:
- Work full-time for a tax firm or accounting company
- Work part-time during tax season to earn extra income
- Run your own business from home
- Work as a freelance preparer for multiple firms
A lot of people start doing taxes on the side while keeping their regular job. Then, once they’ve built up enough clients, they go full-time. It’s a low-risk way to transition careers.
Strong and Growing Demand
The Bureau of Labor Statistics projects that tax preparer employment will grow by about 6% from 2024 to 2034 — faster than the average for all occupations. Why? Because the tax code keeps getting more complicated, not less. Every new law, credit, and deduction creates more confusion — and more people who’d rather pay someone else to figure it out.
Plus, the gig economy means more freelancers, more independent contractors, and more people with 1099 income who need help navigating self-employment taxes. That’s a huge and growing market.
The Cons: What People Don’t Tell You
It’s Seasonal
Tax season runs from late January through April 15 (or later if extensions are filed). That’s when you’ll make most of your money. The rest of the year can be slow — especially your first year when you don’t have year-round clients.
Smart preparers plan for this. They save aggressively during tax season, offer year-round services like bookkeeping or tax planning, or take on extended returns and amended returns during the off-season.
Starting Pay Can Be Low
If you go work for one of the big chains, expect to start at around $18–$22 per hour during tax season. That’s not terrible, but it’s not amazing either. The real money comes later when you have your own clients or work for a firm that pays on commission or per-return.
You Need to Keep Learning
Tax law changes every year. Credits expire. New deductions appear. Income thresholds shift. If you’re not staying on top of these changes, you’re going to make mistakes — and tax mistakes can be costly for your clients and your reputation.
Most professional organizations require annual continuing education. And even if they don’t, you should do it anyway. The IRS offers free continuing education courses, and platforms like Surgent, Gleim, and Lambers offer affordable options.
It Can Be Stressful
Tax season is intense. Long hours, tight deadlines, anxious clients. If you’re someone who crumbles under pressure, this might not be the best fit. But if you thrive in fast-paced environments and like helping people through stressful situations, you might actually enjoy it.
How to Become a Tax Preparer: Step-by-Step
Step 1: Get Your PTIN
Before you can charge anyone to prepare their taxes, you need a Preparer Tax Identification Number from the IRS. Go to irs.gov/ptin, create an account, fill out the application, and pay the $35.81 fee. You’ll get your PTIN within a few weeks (sometimes sooner).
Step 2: Take a Tax Preparation Course
You don’t legally have to do this in most states, but you absolutely should. A good course will teach you the fundamentals of individual tax returns, deductions, credits, and how to use professional tax software.
Here are some solid options for 2026:
- H&R Block Income Tax Course: Widely available, affordable, and recognized by employers. Usually runs about $200–$300. Sometimes it’s even free if you’re hired by them afterward.
- National Tax Training School (NTTS): A comprehensive correspondence course that’s been around for decades. Around $700–$900 for the full program.
- Enrolled Agent Review Courses (Surgent, Gleim, Fast Forward Academy): If you want to go straight for EA certification, these are the gold standard. Expect to pay $500–$1,500 depending on the package.
- IRS Free Courses: The IRS offers free training through their VITA/TCE programs. Not the most structured, but you can’t beat the price.
Step 3: Get Some Experience
The fastest way to get real experience is to volunteer with VITA or get hired by a tax preparation chain for the season. Both will throw you into real tax situations with real clients (under supervision), which is invaluable.
Another option: practice on your own return and returns for family and friends. Just make sure you know what you’re doing before you charge strangers money.
Step 4: Choose Your Path
Once you’ve got some experience, you’ve got a decision to make:
- Work for a firm: Steady pay, less responsibility, good for learning. Most firms will also cover your continuing education.
- Go independent: More risk, way more upside. You’ll need tax software, a website, marketing, and clients. But you keep every dollar you earn.
- Get credentialed: Pursue your Enrolled Agent license or even a CPA. This opens doors to higher-paying clients and the ability to represent clients before the IRS.
Step 5: Invest in Good Tax Software
This is not optional. Professional tax software is what separates a serious preparer from someone doing returns on their kitchen table. Here are some of the top options in 2026:
- Drake Tax: A favorite among independent preparers. Comprehensive, reliable, and reasonably priced. Plans start around $500–$1,500 per season.
- UltraTax CS (Thomson Reuters): More expensive but extremely powerful. Best for firms handling complex returns.
- ProConnect Tax (Intuit): Cloud-based, integrates with QuickBooks. Good for preparers who also do bookkeeping. Pricing varies by volume.
- TaxAct Professional: Budget-friendly option for new preparers. Starts at around $500 for the season.
Most of these offer free trials or demos. Test a few before committing — the right software can make or break your workflow during busy season.
State Requirements: What You Need to Know
While the IRS doesn’t require tax preparers to be licensed at the federal level (beyond having a PTIN), some states have their own rules:
- California: Must register with the California Tax Education Council (CTEC). Requires 60 hours of initial education and 20 hours of continuing education annually.
- Oregon: Must be licensed by the Oregon Board of Tax Practitioners. Requires education, an exam, and continuing education.
- Maryland: Must register with the Maryland Comptroller’s office.
- New York: Requires registration with the NY Tax Department if you’re not already a CPA, attorney, or enrolled agent.
- Nevada: Requires a surety bond and registration.
Most other states don’t have specific requirements beyond the federal PTIN. But check your state’s rules before you start — ignorance of the law won’t protect you from a fine.
Is It Worth It? The Bottom Line
If you want a career that pays well, has low barriers to entry, and offers real flexibility — tax preparation is one of the best options out there in 2026. Here’s the quick math:
- Time to start earning: 2–4 months for training + PTIN
- Startup cost: $200–$1,500 for training, $35.81 for PTIN, $500–$1,500 for software
- Potential first-year income: $30,000–$50,000
- Potential income after 3–5 years: $70,000–$100,000+
Where else can you spend a few months and a couple thousand dollars and have a realistic shot at a professional-level income? Not many places.
The tax code isn’t getting simpler. People aren’t getting less confused about their taxes. And the gig economy is creating millions of new taxpayers who need help every single year. The demand is real, and it’s growing.
If you’re on the fence, start with a free VITA course. Volunteer for one season. See if you actually like the work. Worst case, you spent a few weekends learning something useful. Best case, you found yourself a new career.
That seems like a pretty good deal.