If you want to become a tax preparer, now is an ideal time to enter this growing field. As of 2026, demand for qualified tax professionals in the U.S. continues to rise, driven by changing tax laws, increased digital filing, and businesses seeking expert guidance. Tax preparers help individuals and businesses navigate complex federal and state tax regulations, ensuring compliance and maximizing refunds.
Recent updates from the IRS and professional organizations emphasize formal registration, ongoing education, and the use of secure electronic filing methods. These updates directly affect how aspiring tax preparers can enter and succeed in the industry.
Table of Contents
Why Becoming a Tax Preparer is a Smart Career Choice
The U.S. Bureau of Labor Statistics reports that employment for tax preparers is expected to grow by 4% from 2024 to 2034, reflecting a steady demand in both seasonal and full-time roles. Key benefits include:
- Flexible work schedules: Many tax preparers work part-time during tax season or full-time year-round.
- Strong earning potential: Median annual wages in 2025 reached around $57,000, with top professionals earning over $100,000.
- Opportunities for specialization: Tax preparers can specialize in areas like small business taxes, estate planning, or international taxation.
With the IRS continuously updating tax codes and e-filing systems, trained tax preparers remain indispensable.
Requirements to Become a Tax Preparer in the U.S.
To become a tax preparer in 2026, the IRS mandates the following:
- Obtain a Preparer Tax Identification Number (PTIN)
Every tax preparer must register with the IRS and obtain a PTIN. Registration is done online, costs $35.95, and must be renewed annually. - Complete Required Education and Training
While no formal college degree is required, completing IRS-approved courses or tax preparation programs improves knowledge and credibility. Courses often cover:- Federal and state tax law
- Filing procedures
- Ethics and compliance
Many programs now offer online options for flexibility.
- Pass the IRS Annual Filing Season Program (AFSP) or Become an Enrolled Agent (EA)
- AFSP: Voluntary, but gives limited representation rights before the IRS. Requires 18 hours of continuing education annually.
- EA: Full representation rights, achieved by passing a comprehensive IRS exam covering individual and business taxes.
- Background Check
The IRS reviews criminal history, particularly any financial crimes or tax-related offenses. - Stay Current with Continuing Education
Tax law changes frequently. Preparers must complete annual courses to maintain credentials. In 2026, this includes updates on cryptocurrency, digital asset taxation, and new deductions and credits.
Step-by-Step Guide to Becoming a Tax Preparer
| Step | Action | Details |
|---|---|---|
| 1 | Apply for PTIN | Register online with the IRS, pay the fee, and receive your PTIN. |
| 2 | Complete Tax Training | Choose IRS-approved courses; focus on federal and state filing requirements. |
| 3 | Choose Credential Path | AFSP for limited representation or EA for full IRS representation rights. |
| 4 | Pass Exams (if required) | AFSP has no exam; EA requires a three-part IRS exam. |
| 5 | Find Employment | Work at tax firms, accounting offices, or independently. |
| 6 | Maintain CE Credits | Complete annual continuing education to stay compliant. |
Earnings and Job Outlook in 2026
The demand for tax preparers peaks during January through April each year, but full-time opportunities exist for accountants and financial advisors. Key figures for 2026:
- Median Hourly Wage: $27–$30
- Median Annual Wage: $57,000
- Top 10% Earners: $100,000+
- Employment Growth: 4% projected through 2034
Additional opportunities include seasonal gigs at large tax firms or freelance work assisting small businesses.
Technology and Modern Tax Preparation
Tax preparation has evolved significantly. Current trends include:
- E-filing dominance: Over 90% of tax returns are now filed electronically.
- AI-assisted software: Tools like tax calculators, document scanners, and fraud detection are increasingly used.
- Remote consulting: Tax preparers can now assist clients nationwide via secure portals.
These technological tools require preparers to be tech-savvy and familiar with data privacy regulations.
Essential Skills for Success
Becoming a tax preparer requires more than just credentials. Critical skills include:
- Strong understanding of federal and state tax codes
- Attention to detail and accuracy
- Excellent communication with clients
- Problem-solving for complex tax situations
- Familiarity with digital filing platforms and cybersecurity
State-Specific Requirements
While the IRS governs federal tax preparation, some states have additional requirements:
- California: Requires a PTIN and AFSP, plus state-level registration.
- New York: Preparer must be registered and complete a state-specific course.
- Texas: No additional state registration; PTIN and AFSP suffice.
Always check state boards before offering services to ensure compliance.
Continuing Education and Certification Updates in 2026
Recent IRS updates highlight new continuing education modules:
- Cryptocurrency taxation
- Green energy and EV credits
- Small business digital asset tracking
- Updated deductions for remote work and telecommuting
Maintaining up-to-date knowledge ensures accuracy and credibility.
Conclusion
The pathway to become a tax preparer in 2026 is clearer than ever. With proper registration, training, and ongoing education, individuals can launch a rewarding career in this essential financial service. Modern tools and state-of-the-art software make the profession dynamic, flexible, and lucrative.
Start your journey today, and join the growing community of skilled tax professionals dedicated to helping clients navigate the complexities of U.S. taxes.
