What's it really like working as a tax preparer in 2025? Considering a career change

Thank you so much for such a detailed response! The 60+ hour weeks during tax season sound intense, but I guess that's expected. Do you find that the seasonal nature is actually a good thing? Like, does having that "off season" help prevent burnout even though the busy season is crazy? Also, for the EA exam - how difficult is it really? I've heard mixed things about how much study time is needed.

The seasonal nature can definitely be a positive - I actually love having more flexibility during summer and fall. It helps balance out the intensity of tax season and prevents burnout. I use that time for continuing education, vacation, and developing other aspects of my business. Some preparers I know actually prefer this rhythm to a consistent 40-hour workweek year-round. The EA exam is challenging but very doable with proper preparation. It tests your knowledge of individual and business tax law, representations, and tax procedures. Most people study for 3-6 months per part. I used a commercial review course which helped tremendously. The pass rates are around 60-70%, so it's not impossibly difficult, just requires dedicated study time and understanding of tax concepts.

That sounds interesting - does it help with understanding the tax code itself or just with specific documents? I'm studying for the EA exam and wondering if this would be useful.

I'm skeptical about AI tools for tax preparation. How does it handle complex situations or stay current with changing tax laws? Does it actually give accurate advice?

It definitely helps with understanding the tax code itself. You can ask it specific questions about tax laws, regulations, or concepts and it breaks them down really well. For EA exam prep, it would be useful as a supplement to your regular study materials, especially for clarifying confusing concepts. For complex situations, I've found it handles nuance surprisingly well. It stays current with tax law changes and actually cites its sources. I was impressed when it correctly explained the recent changes to 1099-K reporting requirements. It's not meant to replace professional advice for the really complex stuff, but it's great for learning and building your knowledge base.

How exactly does this work? Do you still have to be available when they call you back? I'm confused how a service can actually get through the IRS phone tree better than I can myself.

This sounds like BS honestly. The IRS phone system is designed to make you wait. How could some third-party service possibly get through faster? Sounds like a scam to me.

Yes, you need to be available when they call you back. It works by using automated technology to navigate the IRS phone system and wait on hold for you. Their system stays on the line, working through all the prompts and waiting periods, then calls you once it reaches a human agent. You stay productive instead of listening to hold music for hours. It's definitely not a scam. They use technology to efficiently handle the waiting process, but they don't "cut the line" or do anything shady. The system simply waits on hold so you don't have to. What makes it valuable for tax preparers is that you can handle multiple client issues instead of being tied up on one call. Time management during tax season is everything.

Is there any tax software that's more affordable for someone just starting out? I'm thinking about doing this part-time at first while I build a client base.

There are definitely more affordable options for someone just starting out. Drake and TaxAct Professional are generally less expensive than the premium options like Lacerte or UltraTax. Some software providers also offer "pay-per-return" options where you only pay for what you use, which can be great for building a practice. Another approach is to focus on a specific niche at first, like individual returns only, which requires fewer software modules. As your practice grows, you can add business, partnership, or corporate modules. Many new preparers I know start with just 1040s and related schedules before expanding their services.

This is so true. I worked one season at a tax prep chain and couldn't handle the emotional toll. One client screamed at me for 20 minutes because they owed $800 instead of getting a refund like last year. Nothing to do with my preparation - their withholding had changed!

I hadn't really considered the emotional component. That's really valuable insight. Did you find that aspect got easier over time as you gained experience? Or is dealing with emotional clients always challenging?

It definitely gets easier with experience, but honestly, some clients will always be challenging regardless of how long you've been doing this. What helped me most was developing a standard way to explain potentially bad news upfront and setting clear expectations during the initial consultation. I always tell new clients that tax liability depends on their specific situation and withholdings, not on my preparation. I've learned to frame conversations around "let's see what your tax situation looks like" rather than promising any particular outcome. Having those conversations early prevents a lot of the emotional blowups later. The satisfaction of helping people really does balance out the difficult moments. Last year I helped a single mom discover she qualified for earned income credit she didn't know about - that extra $3,000 refund literally changed her month. Those moments make the challenging clients worth dealing with.

Great questions! Building a sustainable client base typically takes 2-3 years if you're starting from scratch. Most independent preparers I know recommend having at least 6 months of living expenses saved, since your first year will likely be lean. You might only do 50-100 returns your first season, but that can grow to 300-500+ returns by year three with good client service and referrals. For continuing education, it depends on your credentials. PTIN holders need 15 hours annually, but if you become an Enrolled Agent, you'll need 72 hours every 3 years (24 per year). The cost varies widely - you can find free or low-cost CE through the IRS and professional organizations, or pay $200-800 for premium courses. Many preparers budget around $500-1000 annually for CE. Starting part-time while keeping your current job is often the smartest approach. You can build your skills and client base gradually without the financial pressure. Many successful independent preparers started exactly that way!

This is exactly the kind of real-world perspective I was hoping to hear! The VITA program sounds like a brilliant way to get experience - I had no idea that existed. How many hours per week did you typically volunteer during tax season? And did they provide training or did you need to already have some tax knowledge going in? Your point about the retail management skills transferring over is really encouraging. I've definitely dealt with my share of difficult customers and high-pressure situations, so maybe this transition won't be as daunting as I thought. The income progression you mentioned ($8K to $65K) is impressive and gives me hope that this could actually work financially. How long did it take you to feel confident enough to leave retail completely? I'm trying to figure out the right timing for making that leap. Also curious about your small business niche - do you find those returns significantly more complex than individual returns? I'm wondering if I should start with just basic 1040s or if jumping into business returns early would actually help me stand out more quickly.

@CosmicVoyager The VITA program is perfect for getting your feet wet! I volunteered about 8-10 hours per week during tax season - mostly evenings and weekends while still working retail. They provide comprehensive training, usually 20-30 hours of instruction covering basic tax law, software use, and client interaction. No prior tax knowledge needed, though your comfort with numbers will definitely help. I left retail after my second tax season when I had about 200 regular clients and felt confident I could replace my retail income. The transition felt natural by then - I wasn't stressed about whether I could handle the work anymore. Business returns are more complex, but that's exactly why they pay better! Schedule C (sole proprietorship) isn't too intimidating once you understand the basics, and it opens up a whole market of freelancers, contractors, and small business owners who often become long-term clients. I'd actually recommend starting with some business returns early if you can handle them - the relationships you build are more valuable and sticky than basic W-2 clients who might shop around for the lowest price. The key is being honest about your skill level and referring out anything too complex until you're ready. Clients respect transparency, and they'll often wait for you to gain the expertise rather than take their business elsewhere if you've built a good relationship. One more tip: start building your network now. Join local business groups, attend chamber of commerce meetings, let everyone know you're studying to become a tax preparer. Word-of-mouth referrals are everything in this business!

Great questions about the tech and business setup side! The learning curve for professional tax software isn't too steep if you're already comfortable with computers. Most programs like Drake, Lacerte, or ProSeries are fairly intuitive once you understand tax concepts. They guide you through interviews and flag potential errors, which is helpful when starting out. For cybersecurity, it's crucial since you're handling SSNs and financial data. Basic steps include using encrypted file storage, secure client portals for document exchange, and keeping software updated. Many tax software providers include security features, but you'll want to research best practices for data protection. On the business setup side, I'd definitely recommend consulting with both an attorney and accountant initially. An LLC provides liability protection, and professional liability insurance is essential (usually $500-1500 annually). For fee structures, research your local market - I started by checking what established preparers in my area charged and positioning myself slightly below until I built experience and reputation. Client contracts don't need to be overly complex, but should cover scope of work, fees, confidentiality, and what happens if there are errors or audits. Many professional organizations like NATP provide template agreements for members. The seasonal rhythm really is fantastic once you adjust to it. Those intense months fly by, and having summers relatively free has been amazing for my mental health compared to year-round corporate stress. Just make sure to budget carefully since income is concentrated in a few months!