Becoming a tax preparer in New York is a practical, rewarding career path, and it could be a smart move for you. All you need is your road map to get there.
New York is one of the few states that requires tax preparers to register with the state. If you’re charging for your services, it’s a key early step.
In this guide, you’ll learn how to become a tax preparer in New York, what the process looks like, how much it costs, and what kinds of job opportunities exist. We’ll break down step-by-step instructions and guidance to launch your tax prep career, so you can decide if this is the right move for your future.
Key Points
- You must have a preparer tax identification number (PTIN) from the IRS and register with the New York State Department of Taxation and Finance to prepare returns for compensation.
- After initial registration, New York requires annual registration renewal and 4 hours of continuing professional education (CPE) for most preparers, unless you’re a certified public accountant (CPA), enrolled agent (EA), or attorney.
- In New York, preparers earn $29,170 to $98,810 annually, according to the US Bureau of Labor Statistics (BLS).
Requirements to Become a Tax Preparer in New York
Preparing accurate tax returns is important work that requires a unique skillset. Preparers need to invest time and training, and some states—like New York—require extra steps beyond the federal requirements.
Here’s a brief rundown of what you’ll need to start working as a paid tax preparer in New York:
- IRS PTIN
- EFIN number
- New York State Department of Taxation and Finance registration
- Meet your yearly continuing professional education requirement
- Properly displayed credentials
The New York State Department of Taxation and Finance sets these rules. Find more information on its official site.
How to Become a Tax Preparer in New York, Step by Step
The career path for a tax preparer in New York is pretty straightforward once you know what to expect. It starts with building a solid training foundation and continues with registration and other requirements.
1. Training
Your first step is building a foundation in tax preparation (if you don’t already have one). Community colleges often offer short courses or certificates that can be finished in a semester, while online options let you move at your own pace.
Free resources like the IRS Link & Learn Taxes program and Intuit Academy can be a great starting point. And more advanced credentials, such as the Chartered Tax Professional (CTP), provide deeper training for those thinking long term.
2. Apply for Your PTIN Through the IRS
Before preparing taxes for anyone, you need a preparer tax identification number. It costs $19.75 to register and renew each year and takes just a few minutes to apply.
It’s important to have all your ducks in a row before applying. The IRS requires multiple forms of identification and other information as part of your application. View the IRS checklist so you start the process prepared and don’t need to cancel and resubmit. Once you have your PTIN, this number will go on all tax returns you prepare for compensation.
3. Register with New York State
To prepare returns for New York residents, you must register as a tax preparer with the New York State Department of Taxation and Finance. According to its website, “If you prepare a substantial portion of any NYS tax return or report for compensation,” you must register. You’ll need to renew annually. The fee is $100 for both first-time and returning registrants.
4. Complete Your Required Continuing Education
Your continuing professional education (CPE) requirements vary depending on where you are in your career. Those becoming tax preparers in New York for the first time will have to take 16 qualifying credits.
The state requires 4 hours of continuing education every subsequent year. These courses are taken through New York’s statewide learning management system (SLMS) and cover topics like tax law, ethics, and updates to NY-specific tax codes.
5. Display Your Certificate
Once registered, you’ll receive a certificate from the state. This certificate, along with New York State’s Consumer Bill of Rights Regarding Tax Preparers, must be visibly posted wherever you choose to do business.
Along with your certification, New York state requires that you post a price list for your services (if you run your own business). The list should contain all your services, the minimum price you charge for each service, and every type of New York tax return you file for your clients.
6. Keep Your Registration Current
You’ll need to renew your NY registration yearly and complete the required CPE hours to stay in good standing. It’s your responsibility to keep up with your fees and education requirements. Building a system to track deadlines—whether it’s a calendar reminder or compliance software—can help keep your credentials up to date.
How Long Does the Process Take?
Becoming a tax preparer in New York doesn’t take years of school or licensing exams, but it’s not instant either. Here’s what to expect at each stage.
- Training: Weeks to months. Community college courses or certificate programs can take a semester or less. Online programs and courses may be completed in days or weeks.
- Getting your PTIN: 15 minutes. Applying online through the IRS is quick. Once submitted, your PTIN is typically issued immediately.
- Getting your EFIN: Up to 45 days. You must apply online through the IRS e-Services portal. The process includes completing an application, passing a suitability check (which involves a background check and fingerprinting), and waiting for IRS approval.
- Registering with New York state: A few minutes. According to New York’s Department of Taxation and Finance, the process should only take a few minutes. Once you go through their online menu and pay your registration fee, you should have access to your tax preparer certificate and New York Tax Preparer Identification Number (NYTPRIN). Note you have to wait 24 hours after completing your continuing education requirements to register.
- Completing your CPE: 4 hours annually. These courses are offered online through the state’s SLMS platform. You can finish them in a single day or spread them out over the year.
- Renewals: Less than a day each year. Renew both your PTIN and NY registration and complete your annual CPE annually. Staying on top of deadlines keeps the process quick.
How Much Does It Cost to Become a New York Tax Preparer?
Starting your career as a tax preparer in New York doesn’t require a huge upfront investment. Here’s a breakdown of the typical costs:
- PTIN (Preparer Tax Identification Number): $19.75 per year through the IRS.
- New York state registration fee: $100 annually for commercial tax preparers (those who file 10 or more returns). Late renewals may trigger extra fees.
- Continuing professional education: Free. New York provides the four required annual hours through its learning management system.
- Other potential costs:
- Tax software
- Errors and omissions (E&O) insurance for liability protection
- Marketing/website costs if you’re running your own business
Career Opportunities for Tax Preparers
Once you’re licensed and registered, you’ve got a number of different career paths to choose from. You can make your career more flexible or shoot for stable, year-round income, depending on how you want to work.
Work for a Tax Firm or Accounting Office
Many tax pros start by working for established firms. During tax season (January to April), nationwide firms or small local practices may often hire part-time or full-time help.
Join a Virtual Team Like Intuit’s TurboTax Live
Want to work from home with a steady flow of clients? Becoming a TurboTax Live expert gives you the freedom to work remotely, choose your hours, and earn a reliable income without needing to find your own clients. Check out current tax preparer jobs in New York or Rochester if you’re local to Western NY.
Start Your Own Tax Preparation Business
If you’re entrepreneurially minded, you can set up your own business offering tax services. Many tax preparers go independent after gaining experience in a larger corporate setting.
Running your own tax prep business puts you in charge of your pricing, schedule, and growth. But you’ll also need to market your services to attract clients and stay on top of state and federal regulations.
Keep the Work Going Year-Round
Tax prep is busiest in the spring, but that doesn’t mean the income has to stop. Many tax pros expand into bookkeeping and payroll or offer services for quarterly filings and small businesses. Others pursue CPA licensure or IRS enrolled agent status for even more earning potential.
Depending on your path, annual earnings in New York range from $29,170 to $98,810, with top earners and credentialed experts potentially bringing in six figures.
FAQs About Becoming a Tax Preparer
Can tax preparers prepare tax returns in multiple states?
Yes. With a valid PTIN, you can prepare federal tax returns for clients in any state. Some states, like New York, California, Connecticut, Maryland, and Oregon, have their own registration requirements. If you’re handling returns in these states, be sure to meet those state requirements.
Is tax preparation work seasonal or year-round?
Tax prep is busiest from January through April, but the work doesn’t have to be seasonal. Many preparers offer services like amended returns, quarterly filings, bookkeeping, or small business support to keep income coming in year-round.
How much can I expect to earn as a tax preparer?
Earnings vary based on experience, credentials, and workload. In New York, most tax preparers earn between $29,170 and $98,810 per year, with experienced pros and those who offer year-round services earning more.
Are there continuing education requirements for tax preparers?
Yes. You must complete 16 hours of coursework when you first register. Then, if you’re not a CPA, EA, or attorney, New York requires 4 hours of approved continuing professional education each year. This helps you stay current with tax laws and keeps your registration active.
Can you work from home as a tax preparer?
Absolutely. Many tax pros now work remotely through platforms like TurboTax Live. You’ll get the flexibility to choose your schedule and the tools to serve clients virtually—no need to rent an office or commute.
Launch Your Tax Prep Career in New York
If you’re ready to put your skills to work, there’s no better time to start. Flexible work options and steady income potential make tax preparation a career path that enables you to make a real impact year-round, not just during tax season.
Explore open roles at Intuit and start your future career in tax prep today.