Question: Alex purchased his home in 2024, and his average mortgage balance for the year was $900,000. He paid $32,000 in mortgage interest during the year. He is single and wants to know how much of his mortgage interest is deductible on Schedule A (Form 1040), Itemized Deductions.

Answer: Under §163(h)(3)(F)(i)(II), for mortgages taken out after December 15, 2017, the deduction for mortgage interest is limited to the interest paid up to $750,000 of home acquisition debt for single filers. Interest attributable to mortgage debt above this limit is not deductible.

Alex’s average mortgage balance of $900,000 exceeds the allowable limit by $150,000 ($900,000 –- 750,000). To calculate the deductible portion of his interest, apply the following ratio:

$750,000 / $900,000 = 0.833 (or 83.3%)

0.833 × $32,000 = $26,656

Alex may deduct $26,656 of the mortgage interest he paid in 2024 on Schedule A (Form 1040), Itemized Deductions. The remaining $5,344 of interest is not deductible.

Taxposium 2025 isn’t just another tax conference – it’s a launchpad for innovation, growth and future-ready strategy. With over 40 sessions led by the brightest minds in the industry, it’s designed to help you thrive amidst change and elevate how you serve your clients.

To help you plan your experience, we’re spotlighting five sessions that offer high-impact takeaways, advanced insights and next-level value for your practice. Whether you’re a CPA, EA or tax preparer, these are can’t-miss opportunities to stay ahead in 2025.

1. Tales from the Darkside: IRS Enforcement of Cryptocurrency

Instructor: Robert Nordlander, CPA, CFE

Cryptocurrency tax enforcement is no longer theoretical. This session explores IRS strategies for tracing transactions, audit trends, and how to help clients minimize risk and stay compliant.

Why it matters: Digital assets are under a microscope. Be prepared to protect clients and your firm from costly missteps.

2. Effectively Representing Clients with Tax Debt

Instructor: Eli Noff, Esq., CPA

With IRS enforcement ramping up, clients are turning to pros who can navigate debt, appeals and settlement options. Learn to leverage CDP and CAP, confirm assessment validity and resolve liabilities with confidence.

Why it matters: Your ability to represent clients before the IRS isn’t just a service – it’s a lifeline. This session shows you how to use that power effectively.

3. Harnessing Generative AI for Better Answers & Practice Growth

Instructor: Benjamin Alarie, LL.M.

Explore how generative AI tools like ChatGPT and Blue J are transforming tax research and client communication. Learn real-world applications and how to safely implement AI in your firm today.

Why it matters: AI isn’t the future – it’s now. Get practical strategies to stay ahead and boost your efficiency.

4. Unlock Hidden Savings: A Deep Dive into Overlooked Tax Breaks

Instructor: Jeremy Kniffen, CPA

From Schedule 1 mysteries to underutilized deductions, this session explores overlooked opportunities that can drive real results. Case studies and practical tools included.

Why it matters: Your clients count on you to uncover savings others miss. This session gives you the edge.

5. Building a Profitable and Balanced Tax Practice

Panel of experts: Jennie Moore, William Hamilton, Logan Graf and Nancy Mcclelland

Hear from a panel of successful practitioners about setting fair pricing, establishing boundaries, integrating tech and scaling sustainably. Real talk. Real strategies. Real inspiration.

Why it matters: You deserve a practice that supports both your clients and your lifestyle. Learn how others make it work.

📍 July 21–23, 2025 | Caesars Palace, Las Vegas

📅 Early-bird pricing ends June 2

Ready to thrive in change? Register for Taxposium 2025 and secure your seat today.

Seeking a career in taxation or accounting? The terms “EA” (enrolled agent) and “CPA” (certified public accountant) often come up. Both are respected credentials, serve different purposes and carry unique benefits.

EA vs. CPA: understanding the differences

Key differences include scope, earning potential and flexibility.

Scope of practice

CPAs are licensed by individual states and have a broad scope, allowing them to perform audit, attest and financial accounting services in addition to tax work. EAs, on the other hand, are federally licensed by the IRS and specialize exclusively in taxation. Their authority spans all 50 states, which makes them especially valuable for clients with multi-state tax concerns.

Earning potential

CPAs typically earn more on average due to their versatility and ability to work in various sectors like audit, corporate finance and consulting. However, EAs can command competitive salaries, particularly in tax-heavy environments such as tax firms, government agencies or private practices by focusing solely on tax preparation and representation.

Professional flexibility

Because EAs are federally authorized, they can represent clients before the IRS regardless of the state they live or work in. This gives them more mobility, which is especially useful in remote work settings or multi-jurisdictional practices. While highly respected, CPAs must maintain compliance with state-specific licensing rules, which can be limiting if they move across state lines.

Common misconceptions about CPAs and EAs

One common misconception is that CPAs are always more qualified than EAs. EAs offer specialization in federal tax matters depending on the work being performed. Another myth is that EAs are somehow “lesser” because they don’t need a degree to qualify. While it’s true that CPAs must meet rigorous education and experience requirements, EAs must pass a comprehensive three-part IRS exam or have relevant IRS work experience. Their knowledge of tax law is tested thoroughly, and their continuing education requirements ensure they stay current in a rapidly changing tax landscape. EAs often have deeper tax knowledge than CPAs.

Can an enrolled agent do everything a CPA can?

Not exactly. While EAs and CPAs have unlimited representation rights before the IRS, EAs are limited to tax-related matters. Depending on state regulations, CPAs can also perform financial audits and attestations – services, which EAs are not authorized to provide. However, when it comes to tax expertise, EAs often have the edge due to their specialized training and IRS-focused knowledge.

Why would CPAs want to earn the EA credential?

Although CPAs already have the authority to represent clients before the IRS, many choose to pursue the EA designation to deepen their tax expertise. Unlike the CPA exam, which covers a wide range of accounting topics, the EA exam focuses exclusively on federal tax law and IRS procedures. For CPAs that do not offer audit or attest services, the EA designation can be a smart way to specialize in tax services as well. CPAs can stay current on tax changes and improve their confidence when handling complex tax matters, such as federal audits, appeals or collection issues.

Is the EA exam easier than the CPA exam?

The EA exam (Special Enrollment Examination or SEE) is almost solely focused on federal tax law and IRS procedures. It consists of three parts and is considered more accessible, especially for those with hands-on tax prep experience. No additional education or work experience is required to pass the exam. The CPA exam consists of four sections covering accounting, auditing, business concepts and regulation. In addition to the exam, the CPA designation requires 150 credit hours of education and (in most states) at least one year of supervised experience.

Final thoughts: EA, CPA or both?

In deciding between the two, consider the career path that interests you most. The CPA license could offer a better path for a broader accounting career with audit work. The EA designation is the best option for tax professionals focused on tax prep, planning and IRS representation. Want to stand out in the tax field? Why not consider earning both?

NATP is here to help

We’re building a free library of guides, blogs and tools to help you become an enrolled agent. Drop your email below, and we’ll send new resources as they’re released.👇