Tax Preparers

Career Guide, Skills, Salary, Growth Paths & Would I like it, My MAPP Fit.

(ONET 13-2082.00 - also called Income-Tax Preparer, Tax Advisor, Enrolled Agent (EA) or Seasonal Tax Professional)*

Back to Business & Financial Operations

1 | Career Snapshot

Fast-facts (U.S.) 2024-25 data
Median annual pay $49,010 (hourly ≈ $23.56) bls.gov
Typical range (10th–90th pct.) $29,170 – $76,020 bls.gov
Businesses providing tax prep 129,061 firms in 2024 (+0.8 % YoY) ibisworld.com
People employed ~265,900 workers in 2024 (IBISWorld) ibisworld.com
Employment trend 2017-22 95 000-98 000 average jobs (BLS) bls.gov
 

Although headline BLS projections show only modest growth, the Inflation Reduction Act’s customer-service funding, a wave of retirements, and the permanent complexity of the tax code keep openings plentiful, especially each January-April surge.

2 | Core Responsibilities

Domain Typical Tasks & Tech
Client Intake Gather W-2s, 1099s, crypto statements, K-1s; verify identity (KBA/ID.me).
Return Preparation Use Lacerte, UltraTax, Drake, TaxSlayer, or AI-assisted tools to calculate AGI, credits, deductions; ensure ACA and premium-tax-credit reconciliation.
Review & Filing Apply due-diligence checklists (Form 8867, §6695(g)); e-file through Modernized e-File or, new for 2025, the IRS Direct File system that now pre-populates wage data. irs.gov
Advisory & Planning Explain estimated-tax safe harbors, Roth conversions, QBI, SECURE 2.0 savers-match, and state SALT cap workaround elections.
Representation If an EA/CPA, respond to CP2000 notices, prepare appeals, negotiate payment plans.
Record-Keeping & Cybersecurity Retain Form 8879 e-signature, encrypt client records, comply with FTC Safeguards Rule.
 

3 | Work Settings & Lifestyle

Setting Seasonality Pros Cons
National Franchises (H&R Block, Jackson Hewitt) Heavy Jan–Apr, part-time rest of year Training, walk-in leads Lower pay ceilings
CPA / EA Practice Busy Jan–Apr + Sep/Oct deadlines Year-round advisory revenue 60-hr weeks in March
Virtual-Only Firm Remote, async, global clients Geographic freedom Self-marketing required
In-House Corporate Steady W-2 prep & payroll tax Predictable salary Limited advancement
VITA / Non-profit Nights/weekends Mission impact, certification path Stipend/no pay
 

Expect 40-50 hr weeks during filing season (70 + hrs for large practices), then 15-25 hrs off-season unless you pivot to bookkeeping or planning.

4 | Salary & Career Ladder

Stage Typical 2025 Comp KPI Benchmarks
Seasonal Preparer (uncredentialed) $20–$28 /hr >95 % acceptance rate, <1 % rejects
Staff Preparer (EA/CPA candidate) $50–$70 k 250 1040s/yr + basic 1120-S
Senior Tax Advisor (EA/CPA) $75–$105 k + bonus 350 returns incl. Sch C/K-1s; client retention ≥ 90 %
Practice Manager / Partner $115–$160 k + profit share Book ≥ $750 k fees, audit-ready files
Virtual-Firm Owner $80 k – $250 k Scalable subscription planning, advisory MRR
 

LEARN: Adding EA or CPA typically lifts pay 15 %–20 % and unlocks off-season representation revenue.

5 | Qualifications & Skill Stack

  1. Education – No degree legally required, but most employers prefer accounting coursework; 80 hrs of IRS Annual Filing Season training (AFSP) boosts credibility.
  2. Credentials
  • Enrolled Agent (EA) – unlimited practice rights.
  • CPA – broad advisory reach.
  • AFSP Record of Completion – limited representation.
  1. Tech Fluency – Cloud suites, Excel Power Query, AI copilots (Thomson Reuters, Intuit), OCR apps, and secure client portals.
  2. Soft Skills – Empathy under stress, explanatory storytelling, bilingual communications.
  3. Compliance Literacy – Circular 230 ethics, §199A, SECURE 2.0, crypto Form 1099-DA, child-tax-credit phase-outs.

6 | Industry & Tech Trends (2025-27)

  1. IRS Direct File Expansion – Free, government-hosted e-file tool now supports 16 states and auto-imports wages; preparers pivot to complex returns & advisory. irs.gov
  2. AI-Driven Prep Suites – AI tax-software market forecast to jump from $25 B (2025) to $60 B by 2034. superagi.com
  3. Generative-AI Copilots – Thomson Reuters and Intuit roll out GPT-powered diagnostics and client-letter drafts; firms save up to 30 % prep time. tax.thomsonreuters.com
  4. Accessibility Concerns – Automation wave raises equity issues for older, less tech-savvy filers; human preparers remain vital. washingtonpost.com
  5. Crypto & Gig-Economy Rules – New Form 1099-DA and digital-asset basis reporting spark demand for preparers versed in on-chain records.
  6. SECURE 2.0 & Clean-Energy Credits – Complex elective credits (45L, EV) and solo-401(k) rule changes drive advisory opportunities.
  7. Cybersecurity Mandates – FTC Safeguards and state privacy laws elevate data-protection requirements, adding market value to tech-savvy preparers.

7 | Pathways In & Up

Entry Point Leverage Skill Next Move
Retail-franchise trainee Volume & interview scripts Earn EA → move to CPA firm
Bookkeeper QuickBooks fluency Add 1040 prep → small-biz returns
IRS VITA volunteer Tax law basics Paid seasonal preparer
Banker / loan officer Client trust Advisory & retirement-tax planning
Military finance clerk Pay-grade tax nuances Specialize in mil/vet niche online practice
 

Portfolio tip: capture anonymized before/after tax-savings case studies (e.g., ERC, QBI optimize) in 300-word write-ups.

8 | Building Your Competitive Edge

  1. Get Credentialed – EA exam (3 parts) within 9 months; average salary bump 20 %.
  2. AI Playbook – Prompt libraries for interview summarization, Schedule C classification, letter drafting.
  3. Crypto Competence – Chain-analysis basics + cost-basis calculators = $300+/return premiums.
  4. Year-Round Advisory – Subscription tax-planning, payroll, sales-tax filings to flatten revenue seasonality.
  5. Bilingual Advantage – Spanish, Mandarin, or ASL can widen market, fetch +10 % fees.
  6. Cyber Hygiene – SOC 2-aligned data vault, MFA, and client-portal training—the new trust currency.

9 | Gauging Your Fit

Is this career path right for you?
Find out Free.

  1. Take the MAPP Career Assessment (100 % free).
  2. See your top career matches, including 5 free custom matches showing whether analytical problem-solving, seasonal intensity, and client empathy energize you.
  3. Get a personalized compatibility score and next-step guidance.
    Already know someone exploring this role?
    Share the link so they can check their fit, too.
    Start the FREE MAPP Career Assessment

10 | Six-Step Action Plan

  1. Volunteer with VITA for 50 hrs; real-world returns + IRS certification.
  2. Pass EA Part 1 (Individuals) within 90 days; target ≥ 85 %.
  3. Pilot an AI Copilot to auto-draft client emails; save 10 mins/return.
  4. Develop a Crypto-Income Checklist; cut error rates on 8949s.
  5. Launch a Post-Season Advisory Package (quarterly tax-projection service).
  6. Publish weekly TikTok/LinkedIn “Tax-Tip Tuesday” videos; build brand and off-season leads.

11 | Closing Remarks

Complex legislation, AI disruption, and a widening DIY-tool gap guarantee human tax experts remain indispensable, especially those who fuse credentialed expertise, tech fluency, year-round advisory, and empathetic guidance. Validate your motivational fit with the free MAPP Career Assessment, then layer in EA credentials, AI toolkits, and niche specialties to turn seasonal spikes into a resilient, six-figure career.

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