EA vs CPA: What’s the Difference Between These Tax Pros?

Food or beverages, other than water, may not be brought into the testing room. Candidates may take breaks to access food and beverages stored in their locker. Personal items are not allowed in the testing room and must be stored in a locker.

How can I get more information or schedule an appointment by phone if I live overseas? (updated July 24,

Becoming an EA is one of the best investments you can make in your career as a tax preparer. The benefits you’ll gain from earning the EA designation will far outweigh the cost of taking the EA exam. In addition to the salary benefits, you’ll also enjoy increased representation https://www.bookstime.com/ rights so you can expand your client base and the services you can offer. Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics. The job levels for enrolled agent status are entry, mid-level, and senior level.

Enrolled Agent salary trends

Entry-level candidates, who are mainly practitioners, may earn around $52,000 annually, and focus primarily on tax returns. The mid-level professionals may earn a little more than the above, which may again go up to $80,000 per year. However, senior-level professionals have a very lucrative pay scale, which may go up to $132,000 annually. But a minimum of five years of experience is required for this kind of salary structure, which comes with huge responsibility.

• All score values above passing indicate that a candidate is qualified — not how qualified.
• In addition to the salary benefits, you’ll also enjoy increased representation rights so you can expand your client base and the services you can offer.
• An enrolled agent is responsible for representing individuals to the Internal Revenue Service.
• They are widely accepted anywhere in the US because of their high level of expertise, strong work ethics, and sense of confidentiality.
• Circular 230, current and prior year versions of IRS publications, forms and instructions are accessible online at IRS.gov.

Pursue a Tax Based Job Title

As you progress in your career, your salary will naturally increase. For each stage of your Enrolled Agent career, you’ll see an average salary increase of 8.38%. If you’re applying for your first tax preparation job, your experience includes your education and any relevant extracurricular activities you participated in (such as the IRS’s VITA program).

How much does it cost to take the special enrollment examination? (updated March 1,

Being affiliated with well-established firms or having partnerships with attorneys or financial consultants can lead to more client referrals and, consequently, higher earnings. EAs who own their practice or firm have the potential enrolled agent salary to earn significantly more than those employed by a company, especially as their business scales. However, you have to understand that this upside comes with operational costs and the risks involved with running a business.

• Candidates that receive a scaled score of 104 are very close to passing.
• New EAs might start on the lower end of the pay scale, but as they gain years of experience and a more extensive client base, their earning potential generally sees a considerable boost.
• CPAs don’t just handle tax matters, they also do audit and assurance, financial reporting, management accounting, and more.
• All references on the examination are to the Internal Revenue Code, forms and publications, as amended through Dec. 31, 2023.
• Sample test questions are also available as examples of the types of questions that may appear on the examination.

Average Base Salary

• Compare enrolled agent salaries for cities or states with the national average over time.
• Review a breakdown of entry level salary expectations by state here.
• A financial advisor can help you maximize the tax efficiency of your investments and assist you in creating and carrying out a long-term plan.
• The hearings that an EA will often take part in usually occur via telephone.
• Jobs paying $61,500 or less are in the 25th or less percentile range, while jobs paying more than $88,000 are in the 75th or more percentile range.

If you have accounting needs with a micro focus, working with an EA could be the perfect fit for you. On the other hand, if you are interested in accounting practices that have nothing to do with taxes, such as auditing, then the CPA option may be best. Remember that salary is one of many tradeoffs between different careers.

As demand increases for tax advice due to changes in the tax law, the demand for EAs is also going to increase. An EA who starts their own business may have a higher earning potential than the average EA or CPA salary. When considering a career move, understanding earning potential is crucial. Enrolled Agents (EAs) are recognized experts in taxation, but what does that expertise translate to in terms of earnings? Let’s take a deep dive into the average salaries of EAs, what influences those numbers, and how EAs stack up against other professions in the tax sector.

Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”. SmartAsset Advisors, LLC («SmartAsset»), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Each of the exam’s four sections costs about $200, depending on the state. There is also a continuing education component, but the exact number of credit hours varies by state. A CPA needs to have a 4-year degree from a qualified university, then pass the CPA Exam in order to earn the CPA credential. While EAs and CPAs can work in similar environments and industries, the EA career is more specialized and applies more to tax professionals as opposed to the accounting profession as a whole.