Consequently, entry-level positions start on the low end cash flow of these ranges, while senior positions claim the highest salaries. For example, in Phoenix, a senior tax consultant with an enrolled agent designation and over 5 years of relevant experience can earn over 6 figures at a regional firm. If you’re planning to start your own book of business, then earning the enrolled agent designation is a great way to differentiate yourself from the bulk of your competitors. As an enrolled agent, you can provide services to your clients that other CPAs, bookkeepers, and finance professionals can’t. In the Pacific Northwest, where tech and trees reign, Seattle enrolled agents earn anywhere from $49,275 and $68,692.

Example #2

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. The job levels for enrolled agent status are entry, mid-level, and senior level. Entry-level candidates, who are mainly practitioners, may earn around $52,000 annually, and focus primarily on tax returns.

What state pays Enrolled Agents the most?

• For example, a small enrolled agent-run firm in rural Nevada could expertly serve clients in New York, California, or Alabama.
• Enrolled agent salaries at IDEMIA and Acuity Insurance are the highest-paying according to our most recent salary estimates.
• In case they are omitting any important information, they should provide a proper explanation regarding the same, otherwise, there may be serious legal consequences.
• 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.
• They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is complying with accounting procedures.

But the average EA salary in Dallas is jobs posted in the area pay Accounting For Architects between $44,367 and $61,850 annually. Self-employed enrolled agents who operate their own accounting agencies can expect more earnings than their counterparts at large brokerages and corporations. At a median of over $53,000, the salary for an independent enrolled agent is not bad.

Move to a Larger Firm

Let’s assume that John has already cleared his EA exam and has experience in tax-related research, consulting, and preparation. He is also proficient in using taxation software, like Turbo Tax and QuickBooks. He has been working as an EA for 8 years, assisting clients with planning and audit in taxation and resolving disputes. Such agents have a very high status and are obliged to maintain the highest level of business ethics. They have the complete right to represent any kind of taxpayer and deal with any type of tax matters they choose to, without any restriction. Their advisory services are recognized throughout the US and are very comprehensive.

Enrolled Agent Salary vs. CPA Salary

• And with affordable pricing, this investment in your future definitely pays off.
• In the Pacific Northwest, where tech and trees reign, Seattle enrolled agents earn anywhere from $49,275 and $68,692.
• Learn how becoming a tax expert can help you excel at firms of all sizes on our Enrolled Agents at the Big 4 blog.
• They have the complete right to represent any kind of taxpayer and deal with any type of tax matters they choose to, without any restriction.
• What’s more, when an enrolled agent runs a small agency or brokerage that offers complete, specialized tax solutions for its clients, she can expand her earning potential even more.

Learn how becoming a tax expert can help you excel at firms of all sizes on our Enrolled Agents at the Big 4 blog. 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. For each stage of your Enrolled Agent career, you’ll see an enrolled agent salary average salary increase of 8.38%. In such a case, it is crucial to determine the amount of tax that the taxpayer has to pay.

EA salary potential is influenced by various factors including experience, role, and location. While EAs may not command the same salaries as CPAs, their specialized tax law expertise is highly valuable in today’s complex financial landscape. The biggest step you can take to increase your salary as a tax preparer is to become an Enrolled Agent. For example, many small to mid-sized businesses prefer to outsource their accounting. So, having one person serve as both their tax preparer and their tax attorney appeals to these clients quite a lot. Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency.