Career guide · Updated November 2026
How to become a tax preparer: steps, requirements and costs
To prepare federal tax returns for pay in the U.S., you need an IRS Preparer Tax Identification Number (PTIN), a working knowledge of individual returns, and practice in professional tax software. Some states add their own registration or licensing rules. You don’t need a college degree or a CPA license to start—optional credentials such as the IRS Annual Filing Season Program or Enrolled Agent status add credibility later.
On this page
7 steps to become a tax preparer
1. Learn how individual tax returns work
Most new preparers start with Form 1040: wages, interest and dividends, retirement income, self-employment income (Schedule C), rental income (Schedule E), deductions and credits. Understanding why each number goes where it does matters more than memorizing forms.
Start here: the $9.99 Become a Tax Preparer mini-course, or the structured beginner live intensive (December 1–11, 2026).
2. Get your PTIN from the IRS
Anyone paid to prepare, or help prepare, federal tax returns must have a PTIN. You apply online through the IRS, and it must be renewed every year. Check the IRS website for the current fee.
3. Check your state’s requirements
A few states regulate paid preparers beyond the PTIN. For example, California requires non-exempt preparers to register with the California Tax Education Council (CTEC), which includes qualifying education and a bond, and Oregon licenses tax preparers. Maryland and New York also have registration rules. Requirements change, so confirm with your state before you take paid work.
4. Choose one professional tax software and practice
Employers and clients expect you to work in professional software. Pick the one you’ll actually use—Drake Tax, CCH Axcess or ProConnect—and practice complete returns from start to finish. Not sure which? Read Drake Tax vs. CCH Axcess vs. ProConnect.
5. Add business returns when you’re ready
Business returns—S-corporations (Form 1120S), C-corporations (Form 1120) and partnerships (Form 1065)—are where many preparers grow their skills and fees. The software courses cover each return type.
6. Decide how you want to work
There are three common paths:
- Employee: a seasonal or year-round role at a tax or accounting firm. See Level 2: Learn tax software.
- Freelancer: contract work for firms during tax season.
- Your own practice: your own clients. To e-file returns for clients, you’ll also need an Electronic Filing Identification Number (EFIN) through the IRS e-file application. See Level 3: Solo CPA Business.
7. Keep learning every year
Tax law, forms and software change every year. Plan for annual updates and continuing education—and know when to ask an experienced reviewer for help.
How long does it take to become a tax preparer?
You can get a PTIN in a single online session. Learning the work takes longer: many beginners spend several weeks studying and practicing before they’re comfortable with straightforward individual returns. Business returns take additional time. State requirements (such as California’s qualifying education) can add to the timeline.
What does it cost to become a tax preparer?
| Item | Typical cost |
|---|---|
| IRS PTIN | Annual fee set by the IRS (check IRS.gov for the current amount) |
| Beginner training | Free guide, $9.99 mini-course, or the live intensive (tuition announced before enrollment) |
| Tax software training | Single courses $139.99–$199.99; complete bundles $499.99 (or 3 × $189.99 / 6 × $99.99) |
| Professional tax software | Set by each vendor; often paid by your employer if you work for a firm |
| State requirements | Varies by state (for example, education and bond costs for California CTEC registration) |
How much can a tax preparer earn?
As an illustrative seasonal revenue range, a self-employed tax preparer could bring in $7,500–$30,000 in a first season, with $30,000–$100,000+ possible as experience and the client base grow. These are planning examples for a concentrated 2.5–3-month tax season, not typical or guaranteed results. Revenue depends on the number of clients, the types of returns, and the fees charged; take-home income is lower after business expenses and taxes.
Tax preparer vs. Enrolled Agent vs. CPA
| Paid tax preparer | Enrolled Agent (EA) | CPA | |
|---|---|---|---|
| Required to start | PTIN (plus any state rules) | PTIN and passing the IRS Special Enrollment Examination | State license: education, the CPA exam and experience |
| Issued by | IRS (PTIN) | IRS | State board of accountancy |
| Can represent clients before the IRS | Limited (with an Annual Filing Season Program Record of Completion), otherwise no | Yes, unlimited | Yes, unlimited |
Many people start as paid preparers and add credentials as their careers grow.
Frequently asked questions
Do I need a degree to become a tax preparer?
No. There is no federal degree requirement to prepare returns for pay. You need a PTIN and must follow any rules in your state.
Do I need to be a CPA to prepare tax returns?
No. CPAs, Enrolled Agents and non-credentialed paid preparers can all prepare returns. Credentials affect what else you can do, such as representing clients before the IRS.
Can I become a tax preparer with no experience?
Yes. Start with the basics of individual returns, practice in professional software, and get your PTIN. Not So Boring CPA’s Level 1 path is built for complete beginners.
Which tax software should a beginner learn first?
Learn the software you expect to use at work or in your own practice. If you don’t know yet, compare Drake Tax, CCH Axcess and ProConnect on our software comparison page.
Can I work as a tax preparer from home?
Many preparers work remotely for firms or run their own home-based practice. You’ll need professional software, secure client-data handling, and an EFIN if you e-file for your own clients.
Where can I learn tax preparation online?
Not So Boring CPA offers online courses taught by Kat Khalandach, a California CPA: a $9.99 beginner mini-course, recorded Drake Tax, CCH Axcess and ProConnect courses for Forms 1040, 1120S, 1120 and 1065, and a live beginner intensive.