They review and prepare tax returns for the business units and other taxpayers they are affiliated to. Enrolled Agents at this level are the financial problem solvers and tax managers of businesses. As the agent’s experience increases, the opportunities for salary upgrade also increase. What’s more, when an enrolled agent runs a small agency how much does an enrolled agent make or brokerage that offers complete, specialized tax solutions for its clients, she can expand her earning potential even more. And, enrolled agent salaries are on the rise at larger firms and corporations, too. So, if you’re just starting out as an enrolled agent, you can expect to make somewhere between $30,000 and $40,000 annually.

Recently added enrolled agent salaries

This means EAs can represent any taxpayer, regardless of whether they prepared their income tax return. EAs can also represent any tax matter, as well as appeal to any office of the IRS. The Enrolled Agent exam costs over $700 USD before factoring in review materials for the exam. The Enrolled Agent certification is much more accessible than other accounting certifications, such as the CPA or CMA.

Average enrolled agent salary over time

Therefore, you should compare the average EA salaries across the United States to better understand how much you can make as an EA. In general, CPAs earn more than EAs in all career levels; however, the CPA credential requires significantly more schooling, time and up-front costs than the EA credential. Additionally, the EA credential is more client-focused, with a variety of career paths. Be sure to consider additional factors alongside salary when planning your professional path. The average enrolled agent salary in Alaska, Wisconsin, and Washington are the highest in the U.S. The lowest average enrolled agent salary states are Virginia, Tennessee, and West Virginia.

• The Enrolled Agent exam costs over $700 USD before factoring in review materials for the exam.
• Self-employed enrolled agents who operate their own accounting agencies can expect more earnings than their counterparts at large brokerages and corporations.
• Considering becoming an Enrolled Agent, but curious about the salary prospects?

How to increase your salary as a tax preparer

There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam. Based on a 2012 study, the tax workforce and revenue agents earned 27% less than accountants. It only goes to show that accountants have more chances of having bigger salaries and more prestige status than agents. But this doesn’t mean that agents are less capable than the accountants.

Common Enrolled Agent salary ranges in the United States

In many cases, clients call upon the expertise of enrolled agents in complex tax situations where audits are likely. So, as the tax preparer, an enrolled agent is the most qualified to explain and defend the choices made during preparation. According to the 2024 Robert Half Salary Guide, hiring trends in accounting and finance continue to favor the job candidate. Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job.

Enrolled agent salary numbers in Los Angeles show that about half of the jobs available pay in the six-figure range. And finally, salary numbers for enrolled agent jobs in San Diego range from $48,192 and $67,183. On average, CPAs do make more money (closer to $70,000 annually) than enrolled agents.

Completing the AFSP is not nearly as comprehensive as receiving an Enrolled Agent designation, and you do not have as many rights as an EA. However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete. This in turn makes you a more popular choice compared to your peers when it comes to a potential client looking for a tax professional.

Given that only a few states offer salaries above the national average for Enrolled Agents, considering a move to a new location for economic advancement should be a decision made cautiously. It’s essential to take into account the cost of living expenses in your deliberations as well. Offer some benefits (e.g., gyms, cafeterias, and daycare) that smaller firms can’t reasonably fit into their budgets. Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization. While this position is commonly filled by a CPA, the Enrolled Agent designation is a great way to secure your tax specialization. Staff accountants handle various financial duties such as ensuring financial statements are prepared correctly and that companies follow the laws and regulations for financial practices.

The other way to become an enrolled agent is by having enough IRS experience. According to the Treasury Department guidelines, you must have at least 5 years of active, continuous service in order to become an EA. In order to become an enrolled agent, you must satisfy the EA requirements of Treasury Department Circular 230. This document explains that you can obtain an Enrolled Agent designation in 1 of 2 ways. The first is by passing the Special Enrollment Examination (SEE), which has 3 parts.

But in the long term, corporate salary caps and geographical constraints often limit CPAs’ salaries. So, an enrolled agent in the right region who builds up a great interstate reputation and client base can certainly out-earn CPAs in the same area. Therefore, because the CPA is a state certification, not a federal one, a CPA may want to earn an enrolled agent designation as well to expand her credentials and earning potential. Of course, the more experience you have, the more an employer will be willing to pay you. Consequently, entry-level positions start on the low end of these ranges, while senior positions claim the highest salaries.