Are you interested in numbers, detail-oriented, and looking for a career with high demand and flexibility? Becoming a tax preparer could be the perfect fit for you. Whether you’re aiming for a full-time role or want to earn extra income during tax season, this guide will walk you through how to become a tax preparer from scratch — step by step.
What Does a Tax Preparer Do?
Before diving into the process, it’s important to understand the role. A tax preparer is responsible for helping individuals and businesses file their taxes accurately and in compliance with the IRS. You’ll calculate tax returns, advise on deductions, and ensure that clients avoid penalties or audits. With proper training, some tax preparers also offer bookkeeping services and year-round financial advice.
Step 1: Understand the Role and Requirements
The first step in learning how to become a tax preparer is to understand what’s required legally and professionally. In the U.S., you don’t need a college degree to start, but you will need specific training and may need to register with the IRS or your state.
Depending on your state, licensing requirements may vary. However, most entry-level tax preparers can begin practicing after completing a tax preparer course and registering with the IRS.
Step 2: Take a Tax Preparer Course
To build a solid foundation, enroll in a tax preparer course. These courses cover important tax laws, filing procedures, and IRS compliance. You’ll learn:
- How to file Form 1040 and related schedules
- Federal and state tax codes
- Common deductions and credits
- Ethics and data protection
- E-filing procedures
Many community colleges and online platforms offer tax preparer classes year-round. Opt for a reputable provider that offers updated course materials and practical experience, especially during tax season.
Step 3: Get Your Preparer Tax Identification Number (PTIN)
Before you can legally file tax returns for clients, the IRS requires you to obtain a Preparer Tax Identification Number (PTIN). It’s a straightforward process:
- Visit the IRS PTIN registration website
- Create an account or log in
- Complete the application
- Pay the processing fee (around $30)
Once approved, you’ll receive your PTIN immediately. This number must be included on every tax return you prepare.
Step 4: Consider Additional Certification
Although certification isn’t mandatory to begin, it greatly enhances your credibility and can lead to better job opportunities. A tax preparer certification demonstrates your proficiency and commitment to the profession.
Popular certifications include:
- IRS Annual Filing Season Program (AFSP): Voluntary but adds credibility.
- Enrolled Agent (EA): Requires passing a 3-part exam and allows you to represent clients before the IRS.
- Certified Public Accountant (CPA): For those who wish to offer a full range of accounting services.
Taking a bookkeeping course online can also be beneficial, especially if you plan to offer year-round services beyond tax season.
Step 5: Gain Practical Experience
Once you’ve completed your tax preparer training and obtained your PTIN, it’s time to gain hands-on experience. You can:
- Work under a seasoned tax preparer
- Join a tax preparation firm like H&R Block or Jackson Hewitt
- Offer free or discounted services to friends and family
- Volunteer with organizations like the IRS Volunteer Income Tax Assistance (VITA) program
The more experience you gain, the more confident and skilled you’ll become in handling complex tax situations.
Step 6: Set Up Your Business (Optional)
After building some experience, many tax preparers choose to go independent. If that’s your goal, you’ll need to:
- Register your business name and obtain a business license
- Purchase professional tax software
- Secure data encryption and record-keeping tools
- Consider errors and omissions insurance
- Market your services locally and online
Combining tax preparation with additional skills like bookkeeping can make your services more appealing. A bookkeeping course online can provide you with the knowledge needed to manage clients’ financial records beyond just taxes.
Step 7: Stay Up to Date
Tax laws change frequently, so continuing education is crucial. IRS-approved courses help you maintain your credentials and keep up with new regulations. If you’re part of the AFSP or an EA, annual continuing education is required.
Many tax preparer classes and certifications offer updates as part of their ongoing training packages. Subscribe to IRS newsletters or follow tax forums to stay informed.
Why Become a Tax Preparer?
Here are some benefits of becoming a certified tax preparer:
- Flexible Schedule: Work part-time or full-time, seasonally or year-round
- Low Startup Costs: No degree required; most of the tools you need are affordable
- High Demand: Especially during tax season and economic changes
- Career Growth: Add services like bookkeeping or payroll to expand your offerings
- Remote Possibilities: Work with clients across the country from your home
Recommended Tools & Courses
To make your journey easier, here are a few reputable options for tax preparer courses and bookkeeping course online:
- NACPB (National Association of Certified Public Bookkeepers): Offers both tax and bookkeeping certification
- IRS VITA/TCE Training: Free resources for volunteer tax preparers
- Coursera and Udemy: Affordable, flexible tax preparer training options
- H&R Block Academy: In-person and virtual training with job placement opportunities
Final Thoughts
Learning how to become a tax preparer is a rewarding journey that opens the door to financial independence and career flexibility. With the right tax preparer course, hands-on experience, and ongoing education, you can establish yourself as a trusted financial professional in your community.
Whether you’re just starting out or looking to switch careers, the demand for tax preparers and bookkeepers remains strong — especially in a world that’s growing increasingly digital and compliance-driven. Enroll in a training program, earn your certification, and take the first step today.
