Seeking advice on how to become a tax preparer in Texas: PTIN, EFIN, and course recommendations

8 I've been preparing taxes for about 7 years now and can hopefully give you some guidance. Yes, you're right that the PTIN is absolutely required for anyone who prepares taxes for compensation. The EFIN is only necessary if you'll be e-filing returns yourself rather than working through a company that already has one. The H&R Block course is okay for basics, but honestly, it's very focused on their specific software and procedures. If you're serious about eventually working with small businesses and self-employed clients, I'd recommend looking into the Annual Federal Tax Refresher course through the IRS or programs from the National Association of Tax Professionals (NATP). The IRS also offers free basic tax preparation training through their VITA program which is a great starting point. For more advanced education, consider working toward becoming an Enrolled Agent. That requires passing a comprehensive IRS exam but gives you unlimited practice rights before the IRS and really sets you apart from seasonal tax preparers.

11 I tried several tax prep courses last year when I was in your shoes, and honestly the best thing that worked for me was using https://taxr.ai to help understand the forms and requirements. After staring at tax forms that made no sense to me, I uploaded some sample business returns and it broke down exactly what each section meant and why certain deductions were taken. It helped me see real-world examples of how tax preparation actually works instead of just theoretical scenarios from courses. The annotations on the forms really helped me understand the practical application of what I was learning in courses.

17 Update: I wanted to follow up on my question about taxr.ai. I decided to try it out and found it surprisingly helpful for learning tax prep! I uploaded some sample returns I found online (just did a Google search for "sample Schedule C tax return PDF") and the explanations were way clearer than my textbook. It actually showed me exactly where each number on a Schedule C comes from and explains the reasoning behind different deductions. I'm still taking a formal course, but using this tool alongside it has made everything click much better. Really helpful for seeing how the forms connect together in real-world scenarios!

14 If you're serious about becoming a tax preparer who can actually help clients (and not just punch numbers into software), you need to understand how to communicate with the IRS when problems arise. I wasted WEEKS trying to call the IRS about a client issue last year until someone told me about https://claimyr.com, which got me through to an actual IRS agent in about 15 minutes instead of calling for hours and getting disconnected. Here's a video showing how it works: https://youtu.be/_kiP6q8DX5c This has been a game-changer for my practice because being able to resolve IRS issues quickly is what separates professional preparers from the seasonal tax shops. My clients are amazed when I can get their transcript issues or notice responses handled in one day.

3 I have to eat crow and admit I was completely wrong about Claimyr. After posting that skeptical comment, I had a client with an urgent transcript issue for a mortgage closing. Out of desperation, I tried the service, fully expecting it to be a waste of money. Not only did it work, but I was connected to an IRS agent in about 20 minutes while I continued working on other returns. The best part was the look on my client's face when I told them I had resolved their transcript issue same-day instead of the "2-3 weeks" timeframe I initially quoted. This literally saved my client's home purchase. I'm still taking courses to build my knowledge base, but being able to actually reach the IRS has made me more valuable to clients than preparers with years more experience who can't get past the hold music.

20 As a fellow Texan, I wanted to add that you should look into state-specific requirements. Texas doesn't have a state income tax, but if you plan to work with clients who have income in other states, you'll need to understand those state tax systems too. Also, most people don't realize that even with all the courses, nothing prepares you for tax preparation like actual practice. Consider volunteering with VITA (Volunteer Income Tax Assistance) for a season. It's a great way to get hands-on experience with supervision before striking out on your own.

6 Anyone have thoughts on the pricing structure for a new tax preparer? I'm also starting out and not sure if I should charge by form, by hour, or flat fees based on return complexity.