Some may be looking for a change in their career path while others want to boost their earning potential or learn more about tax law. CPAs typically work in a more traditional office environment with a predictable salary that increases over time as they gather experience. To qualify for high-level positions, EAs must typically have a minimum of 5 years experience in tax consulting, planning and training. Other tasks include preparing tax returns, performing tax accounting reconciliations, teaming up with the different departments regarding any tax issues, etc. Urban centers like New York City, San Francisco, and Washington D.C. Tend to offer higher salaries due to cost of living and demand for tax professionals.
Salary Comparison by Job Title
Mid-Level EAsEnrolled agents with a few years of experience will see a jump in their pay. Mid-level agents can expect their salaries to be between $50,000 and $70,000 annually. Knowledge of IRS guidelines, experience in client representation, and tax preparation skills all play a significant factor in the earning potential. Entry-Level EAsAn entry-level position is the starting point for an EA career after passing the exam. The annual average salary for beginners could range from $30,000 to $50,000.
New enrolled rolled agent, questions about pay
Some larger organizations pay their entry-level Enrolled Agents more than smaller organizations pay experienced Enrolled Agents. Large firms are willing and able to pay a premium to attract top talent. The larger the company, the higher the pay for a given role, and the better defined your career path will be.
- Individuals who are considering a new career path may find that becoming an enrolled agent is the right choice.
- In most cases, Enrolled Agents compete with other tax professionals.
- The biggest step you can take to increase your salary as a tax preparer is to become an Enrolled Agent.
- The IRS’s Enrolled Agent credential grants you unlimited tax representation authority before the IRS.
- Beyond enrolled agent salaries, there are numerous advantages to becoming an enrolled agent.
- However, actual EA salaries may vary quite a bit (between $37,000 and almost $54,000) when you consider all the variables.
Average Income/salary of EA?
They also work for some of the most well-respected corporations in the country. So, to determine how lucrative a career as an Enrolled Agent can be, use this information to learn more about the Enrolled Agent salary. Entry-level EAs in the U.S. earn an average salary of $50,000 to $60,000 per year.
See what you can earn as an Enrolled Agent
Furthermore, enrolled agents are able to represent citizens abroad in tax matters. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals. There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam. As their experience increases, these agents have the opportunity to move up the pay scale.
- With the IRS increasing enforcement and audit activities, the demand for tax representation is on the rise.
- If you’re looking to speed up your salary gains in tax preparation, the best thing you can do is earn a professional designation, like the Enrolled Agent designation awarded by the IRS.
- An Enrolled Agent (EA) is a tax professional authorized by the Internal Revenue Service (IRS) to represent taxpayers in matters related to the U.S. tax system.
- EA salaries depend on a variety of factors, such as the number of years of experience, type of experience, and work location.
- By comparison, a CPA can have a number of opportunities for earning money.
Enrolled Agent Salary at an Accounting Firm
Background- I am a Tax Pro with 8 years experience, average 450 returns per year. Senior-Level EAsEnrolled agents with five or more years of experience could have an annual income of $75,000 to $100,000 and even more. This is particularly true if they work in a reputable accounting firm or the private sector. EAs with their practice can also have Statement of Comprehensive Income significant income growth as well. The average Enrolled Agent salary is approximately $52,000 annually, as compared to CPAs, who earn an average of approximately $70,000 a year.
Enrolled agent salaries by experience level
Compare enrolled agent salaries for individual cities or states with the national average. They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues. They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is https://www.bookstime.com/ complying with accounting procedures.
Accessible credentialing process
It’s really a personal choice what size company you want to work for, but you should consider benefits that can affect your quality of life. Offer more flexibility and greater access to management, giving individuals a greater say in the perks and fringe benefits available. I am the author of How to Pass The CPA Exam (published by Wiley) and the publisher of this and several accounting professional exam prep sites. Yet, both paths to the EA also involve extensive background investigations.
- If you’re considering a career as an Enrolled Agent (EA) or are already on this path, understanding the current salary trends in 2025 is essential.
- EAs can take on the risk—and reap the rewards—of opening their own tax service firm, helping clients file taxes, optimize savings, stay compliant, and navigate IRS audits.
- EAs are federally authorized to represent taxpayers before the IRS and have unlimited representation rights.
- Nonetheless, in any career, one of the most important factors and probably one of the main considerations is the salary, that’s why we’re here.
- Additionally, enrolled agents must possess a thorough understanding of IRS documentation, as the documentation must be filed with the IRS.
- An enrolled agent’s salary ranges from $22,000 a year at the 10th percentile to $54,000 at the 90th percentile.
Corporations and Private Businesses
Whether you’re just starting or looking to maximize your potential, now is an excellent time to invest in your career as an enrolled agent. Becoming an EA is one of the enrolled agent salary 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.