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Individual & small business returns

Tax Preparer

Four intense months, and the rest of the year is yours.

Typical pay

$30k-$80k

How you get in

Tax course plus a PTIN; Enrolled Agent to advance

Outlook

Steady; the value is in complex and business returns

Tax preparers complete returns for individuals and businesses. The seasonal shape is the defining feature — brutal from January to April, quiet afterward — and the Enrolled Agent credential is what turns it into a year-round profession.

A day in the life

  1. 8:30aClient appointment — organize their documents
  2. 10:00aPrepare returns, one after another
  3. 12:30pLunch at the desk in season
  4. 1:00pResearch an unusual deduction question
  5. 3:00pReview and e-file completed returns
  6. 7:00pEvening appointments, because that is when clients are free

How to get in

Seasonal preparer

Duration

2-3 months

Cost

$0-$500

Credential

IRS PTIN; some states require registration

  1. Take a tax preparation course — the large chains run free ones and hire from them
  2. Get a PTIN from the IRS, which is required to prepare returns for pay
  3. Work a season at a tax office to see hundreds of returns fast
  4. Decide whether to build your own client base afterward

Enrolled Agent

Duration

6-18 months

Cost

$1,000-$3,000

Credential

IRS Enrolled Agent

  1. Pass all three parts of the Special Enrollment Examination
  2. Gain unlimited rights to represent taxpayers before the IRS
  3. Move into year-round work — planning, resolution and business returns
  4. The credential that separates a professional from a seasonal preparer

Own practice

Duration

2-5 years

Cost

$2,000-$15,000

Credential

EA or CPA plus business registration

  1. Build a client base while working for someone else
  2. Add bookkeeping and payroll for year-round recurring revenue
  3. Specialize — real estate investors, contractors, or expat filings
  4. Complex returns command multiples of a simple filing fee

What people love

  • · Entry with a short course and no degree
  • · Seasonal — eight months of flexibility
  • · Easy to run from home as your own business
  • · Enrolled Agent credential makes it year-round

What wears people down

  • · January through April is genuinely relentless
  • · Income is concentrated in one quarter
  • · Software has commoditized simple returns
  • · Liability for errors on client filings

From people doing it

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