To become a tax preparer in 2027, you need an IRS Preparer Tax Identification Number (PTIN), solid training in federal tax law, access to professional tax software, and a way to e-file returns. Most states do not require a license, and the IRS does not require a degree. You can be ready for your first tax season in a few weeks. With a partner like Nexus United Inc., you can start with zero upfront cost for software and EFIN setup.
The hardest part for most new preparers is not the tax law. It is the startup cost. Professional software, bank products and an IRS e-file setup can cost thousands of dollars before you file a single return. This guide walks you through every step, shows you what each one costs, and explains how to start without that heavy investment.
Quick Answer: Steps to Become a Tax Preparer
- Learn the basics of individual tax returns.
- Get your PTIN from the IRS.
- Check your state’s rules for paid preparers.
- Consider the IRS Annual Filing Season Program.
- Get professional tax software and an e-file setup.
- Set up your business and protect client data.
- Find your first clients.
- Grow your skills and credentials.
What Does a Tax Preparer Do?
A tax preparer completes and files tax returns for other people for a fee. Most new preparers start with individual returns on Form 1040. That includes wages on Form W-2, contractor income on Form 1099-NEC, credits like the Earned Income Tax Credit and the Child Tax Credit, and refund options such as direct deposit.
As you gain experience, you can add self employed clients, rental income, small business returns and year round services like bookkeeping.
Tax Preparer Requirements at the Federal Level
| Requirement | Needed? | Details |
|---|---|---|
| PTIN from the IRS | Yes | Required for anyone who prepares federal returns for pay |
| Minimum age | Yes | You must be at least 18 to get a PTIN |
| College degree | No | No federal education requirement |
| IRS exam | No | Only required to become an Enrolled Agent |
| EFIN | Only to e-file as your own firm | You can partner with an authorized e-file provider instead |
| State license | Depends on the state | Florida has none; a few states do |
Step 1: Learn Tax Basics
Start with a structured course that covers filing status, dependents, income types, deductions and credits. You also need to know the 2025 tax law changes, such as the new deductions for tips, overtime and seniors. Our income tax preparation course is built for beginners and covers both tax law and software practice.
Step 2: Get Your PTIN
Every paid preparer needs a PTIN. You apply online through an IRS Tax Pro Account in about 15 minutes. The fee is $18.75 for 2026, and every PTIN expires on December 31, so you renew it each fall. See the IRS PTIN requirements for full details.
Step 3: Check Your State’s Rules
Most states, including Florida, do not license tax preparers. A few states do. California requires registration with the California Tax Education Council, and Oregon, Maryland, New York and Connecticut have their own registration or licensing rules. Check your state before you prepare your first return. Our guide to tax preparer education requirements covers the credential ladder in detail.
Step 4: Consider the Annual Filing Season Program
The IRS Annual Filing Season Program (AFSP) is voluntary. To earn a Record of Completion, you take 18 hours of continuing education each year, including a 6 hour Annual Federal Tax Refresher course with a test. In return, you get listed in the IRS directory of preparers and can represent clients whose returns you prepared before certain IRS staff. It is a strong trust signal for a new preparer.
Step 5: Get Tax Software and an E-File Setup
This is where most new preparers get stuck. To e-file returns as your own firm, you need an Electronic Filing Identification Number (EFIN). The IRS application includes a suitability check, fingerprinting for some applicants and up to 45 days for approval. Professional software can also cost hundreds or thousands of dollars per year.
Before you buy anything, read the 5 mistakes preparers make when buying tax software and compare options in our tax preparation software guide.
Step 6: Set Up Your Business
- Choose a business structure, such as a sole proprietorship or LLC.
- Get a local business tax receipt or license if your city requires one.
- Write a Written Information Security Plan (WISP). The FTC Safeguards Rule requires paid preparers to protect client data.
- Set up a simple way to collect documents and e-signatures from clients.
Step 7: Find Your First Clients
Start with people who already trust you: family, friends, coworkers and your church or community groups. Then add a Google Business Profile, simple social media posts and a referral reward. Most new preparers build their first 50 clients through word of mouth.
Step 8: Keep Growing
After a season or two, many preparers take the Special Enrollment Examination to become an Enrolled Agent. That credential gives you unlimited rights to represent clients before the IRS and supports higher fees.
How Much Does It Cost to Become a Tax Preparer?
| Cost item | Starting alone | Starting with Nexus United |
|---|---|---|
| PTIN | $18.75 per year | $18.75 per year (paid to the IRS) |
| Tax course | Varies by provider | Training support included |
| Professional tax software | Often $500 to $3,000 or more upfront | $0 upfront, pay per return |
| EFIN setup | Your time plus up to 45 days of waiting | Setup support at $0 upfront |
| Bank products for client refunds | Separate applications to each bank | Set up through our bank partners |
How Long Does It Take to Become a Tax Preparer?
You can get a PTIN in one day. A beginner course takes about 2 to 8 weeks, depending on your pace. If you apply for your own EFIN, plan for up to 45 days. With a partner that handles software and e-file setup, many new preparers are ready to file within a few weeks.
Start Your Tax Career With Nexus United Inc.
Nexus United Inc. helps new and independent tax preparers start without a large upfront investment. Here is how our model works:
- No upfront costs: full professional tax software and EFIN setup with zero upfront fees.
- Pay per return: you only pay when you actually file a return.
- 70/30 split in your favor: you keep 70% of what you charge your clients.
- Support all season: training, technical help and access to experienced tax professionals.
Learn more about the benefits of a tax preparer network, call (855) 639 8740 or try our network today.
Frequently Asked Questions
Do you need a license to become a tax preparer?
Not at the federal level. You need a PTIN from the IRS. A few states, such as California, Oregon, Maryland, New York and Connecticut, have their own registration or licensing rules. Florida does not.
Can I become a tax preparer with no experience?
Yes. Many preparers start with no tax background. A beginner course, software training and support from an experienced team can prepare you for your first season.
How much does a PTIN cost?
The PTIN fee is $18.75 for 2026. You must renew it every year because all PTINs expire on December 31.
Do I need an EFIN to prepare taxes?
You need a PTIN to prepare returns for pay. An EFIN is needed to e-file as your own firm. Many new preparers start by working with an authorized e-file provider while their own EFIN application is processed.
How much do new tax preparers make?
It depends on how many returns you file and what you charge. Under a 70/30 split, a preparer who files 200 returns at an average fee of $250 keeps about $35,000 for the season.
How long does it take to become a tax preparer?
Most people can be ready in a few weeks. The PTIN takes one day, a course takes 2 to 8 weeks, and an EFIN can take up to 45 days if you apply on your own.
