The short version
| Step | Required? | Cost and time |
|---|---|---|
| Get a PTIN | Yes, for every paid preparer | $18.75 for 2027, about 15 minutes online |
| Learn tax preparation | Not by the IRS, but you need the skill | Course fees vary; many offices train new hires |
| Meet your state's rules | Only in CA, CT, MD, NV, NY and OR | State fees; courses, exams or a bond in some |
| AFSP Record of Completion | No, voluntary | 18 CE hours by December 31; no IRS fee |
| Enrolled agent (EA) | No, voluntary | Pass a 3-part IRS exam; 72 CE hours every 3 years |
| EFIN to e-file as a business | Only to run your own office | No IRS fee; allow up to 45 days |
Step 1: Get your PTIN
Anyone who prepares, or substantially helps prepare, a federal return for pay needs their own PTIN. You apply through the IRS Tax Professional PTIN System with your Social Security number, your prior-year tax return and a card to pay $18.75. Most people finish in about 15 minutes. A paper Form W-12 takes about 6 weeks.
Every PTIN expires on December 31, so you renew it each fall. Full steps are in our guide to getting or renewing a PTIN.
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Step 2: Learn to prepare returns
The IRS doesn't require a course, but clients and employers expect you to know Form 1040, the common schedules and credits, and the due-diligence rules for credits like the Earned Income Tax Credit. Common ways in:
- A tax preparation course from a school, community college or continuing-education provider. In California, the course must be CTEC-approved (see below).
- A seasonal job in a tax office. Many offices train new preparers before January, and a season of real returns teaches more than any course.
- IRS volunteer programs (VITA and TCE), which train volunteers to prepare basic returns. Volunteers are unpaid and don't need a PTIN, but it's real practice.
Step 3: Check your state's rules
Most states don't license tax preparers. Six do, and you must meet their rules before preparing returns for pay there:
- California: register with CTEC: a 60-hour course, a $5,000 bond, Live Scan and yearly continuing education. See California tax preparer requirements.
- Connecticut: a state preparer permit if you prepare more than 10 returns for a fee, with an AFSP Record of Completion for non-exempt preparers. See Connecticut.
- Maryland: pass the state exam and register with the State Board of Individual Tax Preparers. See Maryland.
- Nevada: register with the Secretary of State as a document preparation service, with a $25,000 surety bond. See Nevada.
- New York: register with the Department of Taxation and Finance every year; commercial preparers also complete the state's own education course. See New York.
- Oregon: a license from the Oregon Board of Tax Practitioners, which takes a qualifying course and a state exam. See Oregon.
Step 4: Add a credential (optional, but it pays)
A PTIN lets you prepare returns. It doesn't let you represent clients before the IRS on most matters, and it doesn't show clients you keep up with tax law. Two IRS credentials fix that:
- Annual Filing Season Program (AFSP): 18 hours of IRS-approved continuing education by December 31, including the 6-hour Annual Federal Tax Refresher course and test. You get a Record of Completion, a listing in the IRS preparer directory, and limited representation rights for returns you prepared. See the AFSP guide.
- Enrolled agent (EA): pass all three parts of the IRS Special Enrollment Examination within three years, apply for enrollment on Form 23, and pass a tax-compliance and criminal background check. EAs have unlimited representation rights and keep the credential with 72 hours of continuing education every three years.
Step 5: Choose how you'll work
Work in someone else's office. You prepare returns under the owner's EFIN and software. This is the usual first season: steady volume, training, and no startup cost.
Open your own office. You'll need an EFIN from the IRS e-file application (suitability check, up to 45 days), professional tax software, and usually bank products so clients can pay fees from their refund. See how to get an EFIN and the tax office launch guide.
Apply early. An EFIN can take up to 45 days. If yours won't be approved by January, the legitimate stopgap is to prepare returns as an employee of an office that has its own EFIN for one more season. You can't e-file your own business's returns under someone else's EFIN. See starting a tax business without an EFIN.
What it costs to get started
Becoming a preparer can cost under $100 if you work for an office: the $18.75 PTIN and a course. The costs grow when you open your own office, mainly software, bank-product setup, insurance and marketing. Budget it with the tax office startup cost calculator, and see how much tax preparers make and what to charge per return.
Becoming a tax preparer FAQ
Do you need a license to be a tax preparer?
Not federally. Every paid preparer needs a PTIN, but there's no federal license, exam or degree. California, Connecticut, Maryland, Nevada, New York and Oregon add their own registration or licensing.
How long does it take to become a tax preparer?
The PTIN takes about 15 minutes online. Learning the work takes longer: a basic course plus a season in an office is the usual path. In states with rules, add the state course or exam and registration time.
How much does it cost to become a tax preparer?
$18.75 for a 2027 PTIN plus whatever your course costs. In regulated states, add state fees, a surety bond (California $5,000, Nevada $25,000) or a state exam (Maryland, Oregon).
Do I need a degree to prepare taxes?
No. CPAs need a degree, but paid preparers, AFSP participants and enrolled agents don't.
Can I prepare taxes from home?
Yes. Many preparers work from home with professional tax software. To e-file as your own business you need an EFIN, and you must protect client data under the FTC Safeguards Rule and IRS Publication 4557.
What's the difference between a PTIN and an EFIN?
A PTIN identifies you as a paid preparer. An EFIN authorizes your business to e-file returns. You need a PTIN to prepare; you need an EFIN to e-file as your own office. See EFIN vs PTIN.
Sources
Program rules change; confirm current requirements with the IRS and your providers.