Download the latest version of your browser of choice from the providers’ websites. One of the critical things you’ll need to consider when choosing between an Enrolled Agent vs CPA is the time investment you’ll need to put toward earning the certifications. Whether you’re considering becoming a CPA or EA, you’ll need to pass a test to earn the certification. Since accountants with each certification specialize in different areas, the testing required to earn them is different, as well.

If you’re looking for the quickest and easiest option, for example, becoming an EA requires less time investment, and pass rates for the exam are relatively high. If you want to become a CPA, you’ll need to meet a few basic requirements first. A Certified Public Accountant, also known as a CPA, is a tax professional who has met state licensing requirements needed to earn a CPA license via experience, training and passing an exam.

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Tax preparers who earn compensation for their work on federal tax returns require a preparer tax identification number (PTIN) from the IRS. Enrolled agents must also hold a valid PTIN, making them eligible to perform tax preparation work for their clients. Payscale also tracks salary ranges — tax preparers at the 10th percentile had base earnings of just $24,000 per year. Meanwhile, professionals at the 90th percentile commanded base salaries of $73,000 per year. Enrolled agent salaries typically range between $22,000 and $54,000 yearly. As their experience increases, these agents have the opportunity to move up the pay scale.

• Increased experience can elevate their job performance and lead to higher pay.
• Additionally, anyone who is interested in becoming an EA will need to pass a background check.
• The average enrolled agent salary in Alaska, Wisconsin, and Washington are the highest in the U.S.
• The good news is that you don’t need a college degree or previous experience to become an EA.
• In her spare time, she is a devoted cat mom and enjoys hiking, painting, and overwatering her houseplants.
• For instance, CPAs primarily focus on providing consultation services and tax return preparation.

Minimum 2+ seasons paid tax experience and minimum 30+ tax returns prepared per season. According to Payscale, tax preparers at the 90th percentile earn average base salaries of $73,000 per year. In 2021, the BLS reported an average tax preparer salary of $51,080 per year. In September 2022, Payscale quoted a slightly lower average base salary of about $48,710 per year. However, Payscale also reports that bonuses can significantly increase that figure.

Average Salary Range for Enrolled Agent

After Congress passed the income law in 1913, the duties of EAs were expanded to include tax representation. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals. There is https://goodmenproject.com/business-ethics-2/navigating-law-firm-bookkeeping-exploring-industry-specific-insights/ no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam. So, you want to elevate your future by earning an accounting designation or certification.

• Performance is determined by customer feedback, issue resolution, and completion of the assigned season.
• Another way to boost your salary and solidify your expertise is to become dual-certified.
• Jobs paying $58,500 or less are in the 25th percentile range, while jobs paying more than $83,000 are in 75th percentile.
• A senior-level enrolled agent with between 10 and 20 years of experience can typically expect to earn an average salary of $55,000.
• Join the Intuit team and work online with a schedule that supports your needs helping TurboTax Live customers get a better picture of their taxes and finances.
• As of 2021, more than 95% of U.S. tax preparers work for companies that provide accounting, payroll, bookkeeping, and tax prep services.

In order to sit for the EA exam, all that is required is a preparer tax identification number. After passing the exam and paying the necessary enrollment fee, candidates will then be required to pass a compliance check to ensure they have paid all their taxes. EA candidates are not allowed to have any outstanding tax liabilities.

What Is An Enrolled Agent?

It can be split between two people, but it comes in a single package. There’s no way to avoid paying for both sticks even if it’s just you. Self-employed individuals, on the other hand, have to calculate and pay these taxes themselves. The best way to gauge exam difficulty is by examining the most recent pass rate data for each test.

While much work in tax is done from January through April 15th each year, enrolled agents have the distinction of working year round. As an EA, you may be tasked with preparing both individual and business tax returns. Most tax firms do not specialize in preparing just business returns, but having the knowledge needed to prepare business returns will be beneficial to you as you seek employment. By preparing individual or business taxes you’ll get real world experience helping tax clients with some of the more common problems they face. EAs are more than just expert tax preparers, you will manage client relationships, prepare and review corporate, individual, partnership, fiduciary and other tax returns. Becoming an EA is one of the best investments you can make in your career as a tax preparer.

Enrolled Agent salary

Find a place you want to live or a firm you want to work for and then use the table below to inform your salary expectations.

• Enrolled agents are specialized tax practitioners who are certified to represent taxpayers in dealings with the IRS.
• If you dislike the cold and aren’t comfortable in a big city, you don’t have to live in New York or Chicago to make a living as an Enrolled Agent.
• The hearings that an EA will often take part in usually occur via telephone.
• The length of time required to become an enrolled agent is much less than the amount of time required to become a CPA.
• These factors combine to create stable prospects for qualified tax preparers.

An enrolled agent is responsible for representing individuals to the Internal Revenue Service. Since an enrolled agent has a number of responsibilities, the salary tends to be fairly lucrative. It goes without saying that you should always put law firm bookkeeping a client’s needs first, what better way to separate yourself from others than as a knowledgeable wealth and tax expert? Having the Enrolled Agent credential gives you the ability to more effectively speak about things important to your client.

This means you will be working to gather financial documents, work to process and save them for future review. As an Enrolled Agent you have opportunities to increase your salary by charging a fee for representation services, tax advice, or opinions on tax matters. EAs can work year-round, representing taxpayers in examinations, audits, installment agreements, collections and appeals. According to the 2022 Robert Half Salary Guide Opens in new window, hiring trends in accounting and finance continue to favor the job candidate. Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job.