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

The average Enrolled Agent Salary in The United States is $56,000 per year. Salaries range from $44,900 to $73,600.The average Enrolled Agent Hourly Wage is $20.00 per hour. Hourly wages range from $16.00 to $26.30.Salaries and wages depend on multiple factors including geographic location, https://www.bookstime.com/articles/ecommerce-bookkeeping experience, seniority, industry, education etc. To become a CPA, candidates must pass a four-part exam and comply with education and experience requirements. The exam is the same no matter which state it’s taken in, but every state has its own education and experience requirements.

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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 rights so you can expand your client base and the services you can offer.

Where do Enrolled Agents earn more in The United States?

• CPAs help clients set and achieve financial goals through money management and financial planning.
• EAs boast a wide range of knowledge in such tax-related subjects as income, estate, gift, payroll, levies, returns, inheritance, non-profit and retirement taxes.
• Review a breakdown of entry level salary expectations by state here.
• If you dislike the cold and aren’t comfortable in a big city, you don’t have to live in New York or Chicago to make a living as an Enrolled Agent.
• Large firms are willing and able to pay a premium to attract top talent.

There is also a continuing education component, but the exact number of credit hours varies by state. EAs and CPAs are both knowledgeable, experienced professionals who are enrolled agent salary required to maintain high ethical standards. The primary difference between an EA vs CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and more.

View Salary for Similar Jobs to Enrolled Agent in New York, NY

Additionally, EAs can also provide tax advice, tax return filing and more. Our job description management tool- JobArchitect streamlines your job description process. EAs are federally authorized to represent taxpayers before the IRS and have unlimited representation rights.

On-site daycare could save thousands of dollars and dozens of hours in commuting each year. At the same time, some people dislike the bureaucracy that comes with larger organizations, and they’re happier at the end of the day if they have more freedom to pursue their own ideas. Bookkeepers ensure that a business makes the most economically viable and safe decisions to keep finances tight and under control. This position does not exclusively involve taxes, but having experience with tax planning can be beneficial to many bookkeepers. Each of the exam’s four sections costs about $200, depending on the state.

• If you’re interested in professional help with your taxes, you might be wondering what types of specialists there are and which one you need.
• Whether you want an expert to do your taxes from start to finish, or expert help while you file on your own, TurboTax has expert-backed offerings to meet your needs.
• Earning an EA confirms to clients the tax knowledge that you have, and keeps you up to date every year on any changes in taxation.
• A Form 1040 return with limited credits is one that’s filed using IRS Form 1040 only (with the exception of the specific covered situations described below).
• Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”.

They handle balancing the budget and must use budgeting and auditing software programs. If you need help with an IRS issue, such as a collection problem or an audit, then an EA might be your best bet. They’re typically adept at dealing with the IRS, and some EAs even worked as IRS agents before opening their own practices. Find a place you want to live or a firm you want to work for and then use the table below to inform your salary expectations.

Entry-level salaries for EA agents

Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics. When it comes to accounting and tax planning, you may get easily confused amid the sea of acronyms. However, a solid understanding of certain accreditations is key if you’re looking for a licensed tax professional to guide you through your tax needs. When making your decision about whom to work with, you may wonder about the differences between an enrolled agent (EA) and a certified public accountant (CPA).

Costs and Processes of Becoming an EA and CPA

• This job usually involves a busy season, with the highest workload occurring from December to mid-April.
• The exam is the same no matter which state it’s taken in, but every state has its own education and experience requirements.
• 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.
• There is also a continuing education component that entails taking 72 credits every three years.
• When deciding between an EA or a CPA, you will see that both types of professionals are well-qualified.
• A smaller step, but still one in the direction of earning more for your expertise, is completing the Annual Filing Season Program.
• Whether you’re just getting started as an Enrolled Agent or are already a CPA wanting to specialize in tax, dual certification is the best way to help yourself stand out from the crowd.

If you’re interested in professional help with your taxes, you might be wondering what types of specialists there are and which one you need. An enrolled agent and a certified public accountant are both tax experts, but when you should work with an EA vs CPA differs based on your needs. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. Tax preparers work with taxpayers to complete federal and state tax returns. This job usually involves a busy season, with the highest workload occurring from December to mid-April. A smaller step, but still one in the direction of earning more for your expertise, is completing the Annual Filing Season Program.