As a tax preparer, increasing your income and expanding your services are always priorities. Earning the enrolled agent (EA) designation is a powerful way to achieve these goals. This credential not only enhances your earning potential but also attracts high-value clients and justifies premium pricing for tax services.
Wondering how becoming an EA can transform your career? Here are answers to some of the most common questions from curious tax preparers looking to make a change:

How much do enrolled agents make?

• According to the Gleim EA Salary Guide, enrolled agents earn significantly more than uncredentialed tax preparers. The average EA salary in the U.S. is $64,264, while non-credentialed tax preparers make around $41,441. This translates into a 55% increase in earnings per the Enrolled Agent Salary Guide - Gleim Exam Prep.

  • The increased income is due to EAs’ ability to represent clients before the IRS and offer more specialized tax services.

    Can tax preparers with an EA charge more?

    The EA designation grants unlimited practice rights before the IRS. This means EAs can represent clients in audits, appeals and collections, giving them a competitive edge. As a result, EAs can charge higher fees than tax preparers who only offer basic return preparation. Clients are willing to pay a premium for professionals who can provide year-round tax planning and IRS representation.

    EA vs. CPA salary: which credential offers more?

    While both EAs and CPAs can represent clients before the IRS, CPAs typically focus on accounting and auditing, whereas EAs specialize in tax matters. EAs often command high fees due to their tax expertise, particularly in tax resolution and IRS representation. While CPAs may earn more in broader financial roles, EAs focusing on high-value tax services can achieve comparable or even higher earnings.

    Best ways to increase tax preparer income

    One of the greatest benefits of earning an EA credential is working with more profitable clients. Business owners, high-net-worth individuals, and self-employed professionals prefer credentialed experts for their complex tax needs. With an EA license, you can move beyond simple tax returns and offer high-margin services such as:

• Tax resolution and IRS representation

• Advanced tax planning strategies

• Business tax consulting

  Case study: a tax preparer’s journey to higher earnings

  Before EA certification:

• Name: John, a tax preparer with 5 years of experience

• Annual income: $40,000

• Services: Primarily individual tax return preparation ($100-$200 per return)

  After EA certification:

• Annual income: $65,000+ (a 62% increase)

• Services: Expanded tax resolution, IRS representation and business tax planning ($300-$1,000 per client)

• Client base: High-value clients requiring year-round tax assistance

• John’s story shows how becoming an EA transformed his tax business, allowing him to transition from low-margin returns to high-profit advisory services.

  Steps to become an EA

  Ready to take your career to the next level? Follow these steps:

1. Pass the EA exam – The Special Enrollment Exam (SEE) consists of three parts covering individual tax, business tax, and representation practices.

2. Apply for enrollment – Submit Form 23 to the IRS upon passing the exam.

3. Maintain your credential – Complete annual continuing education (CE) requirements to stay updated on tax laws.

   Is becoming an EA worth it?

   If you’re a tax preparer looking for career growth, increased earnings and a broader service portfolio, earning an EA credential is one of the best steps you can take. With the ability to charge more, attract high-value clients and unlock new income opportunities, becoming an enrolled agent provides a clear financial advantage.

Take the next step in your tax career today and start your journey toward becoming an EA. Join NATP

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Helping clients navigate education tax credits can lead to significant savings, but the rules can be complex. Understanding the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC) is essential for maximizing benefits while ensuring compliance. Proper planning can make a big difference in tax liability and financial aid eligibility.

Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand versions of these webinars (Part 1 and Part 2), you can access the full recording and the entire list of Q&As.   

Q: Can a student claim themselves as a dependent even if the parents qualify to claim them as a dependent?

A: No. The student must demonstrate that they provided more than 50% of their own support in order to claim themselves.

Q: A student goes to college in Germany. To qualify for the education credit, is the school in Germany required to issue a 1098-T?

A: The college must be a recognized educational institution and have a federal ITIN. You can reference two eligible school lists on the IRS website: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/eligible-educational-inst.

Q: If a student in a certified apprenticeship program is working in the field, can they use 529 plan funds for the apprenticeship program?

A: Yes. Qualified higher education expenses include fees, books, supplies and equipment required for a registered apprenticeship program certified with the Secretary of Labor [§529(c)(8)].

Q: Can a noncustodial parent claim the American opportunity tax credit (AOTC)?

A: No. Only the custodial parent can claim the AOTC, and only if they claim the child as a dependent on their tax return.

Q: Can a student who lives near the campus of a tech college, where they are a full-time student, use 529 funds for their apartment? If so, the cost of housing is not listed on the school’s website. How do you determine the cost of room and board?

A: Yes, 529 funds can be used for off-campus housing expenses, as long as they are within the school’s stated cost of attendance. The room and board costs cannot exceed the greater of:

1. The allowance for room and board included in the cost of attendance, as determined by the eligible institution; or
2. The actual invoice amount charged by the institution if the student lives in school-owned housing.

These costs apply even if the student lives off-campus. If the cost of attendance isn’t listed online, the student or family should contact the school directly for this information.

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To learn more about helping clients plan for higher education, you can watch our on-demand webinars of Part 1 and Part 2. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial.

Thanks to a tip from writer and tax attorney Kelly Phillips Erb, we confirmed a series of confusing and potentially misleading errors on the IRS website just days before the tax filing deadline.

What’s going on

Tax professionals are reporting, and we’ve verified, that when logging into a taxpayer’s online account on IRS.gov, the system displays April 22, 2025, as the extension payment due date instead of the correct April 15, 2025, deadline.

One possible explanation is that April 22 may refer to the five-business-day window to “perfect” a failed e-file submission. In these situations, while the original filing must still be submitted by April 15, the IRS allows until April 22 to correct errors and resubmit without late filing penalties. However, the site does not explain this situation, and the message lacks context.

Additional problems found include:

• Mislabeling the amended return as “104X” (instead of Form 1040-X)
• Some are seeing a message that implies returns already filed and processed returns for 2022 and 2023 are still being processed

Why this matters

This misinformation could easily lead taxpayers and preparers to mistakenly delay extension payments until April 22, risking late payment penalties and interest. With no clear explanation on the page, this error is misleading and problematic for those relying on IRS guidance.

What we’re doing

We’ve raised these concerns with our IRS contact and requested immediate clarification and corrections to avoid further confusion during this critical time. We’ll monitor the situation and update you with any developments.

Please remind your clients that April 15 remains the official deadline for filing and extension payments.

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Staying informed is more important than ever. We’re here to help you navigate issues like this with reliable guidance, education, and advocacy.

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