Tax accountants use their specialized knowledge of tax law to help clients file accurate tax returns and save money by reducing their tax liability and avoiding penalties.
To become a tax accountant, you need at least a bachelor's degree in tax law, accounting, finance, economics, or a related field. Some tax accountants, including those with certified public accountant (CPA) designation, also earn a graduate degree. Good tax accountants are detail-oriented, organized, and analytical professionals with excellent math skills.
In this guide, we make an in-depth exploration of how to become a tax accountant. Learn the specific steps it takes to launch a career in tax accounting.
Steps to a Tax Accountant Career
- Bachelor's Degree: Most tax accountants need a bachelor's in accounting or a related field like economics or business.
- Practical Experience: Completing an internship or co-op work experience while in school can help you get hands-on skills that make you competitive on the job market after finishing your degree.
- Consider a Master's Degree: Although not an industry requirement, some employers prefer to hire tax accountants with master's degrees. Completing a master's in accounting can also help you qualify for CPA licensure.
- Become a CPA: Tax accountants may acquire a CPA license, which requires passing the CPA exam.
- Professional Certifications: Tax accountants can pursue professional certifications that demonstrate their expertise in this subfield.
- Continuing Education: Taxation accountants — especially those with CPA licensure or other certifications — must complete continuing education hours to keep their credentials up to date.
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Required Education for a Tax Accountant
Tax accountants typically need at least a bachelor's degree. Popular majors for prospective tax accountants include accounting and related fields like economics, business administration, or finance. Some undergraduate programs may offer a concentration in taxation or tax accounting.
If you want to earn your CPA license, you need at least a bachelor's degree. Every state's CPA requirements also stipulate the completion of at least 150 college credits, while the typical bachelor's degree only comprises 120. Thus, prospective CPA tax associates must complete additional coursework or a master's degree to meet the 150-credit requirement.
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Required Credentials for Tax Accountants
Though tax accountant jobs do not require specific credentials beyond a bachelor's degree, you can pursue CPA licensure to stand out on the job market and qualify for advanced roles with higher wages. If you plan to earn your CPA license, research your state's stipulations, as each jurisdiction mandates its own education and experience requirements.
CPAs need a bachelor's degree and must complete at least 150 credits of college-level coursework. Though you usually don't need to major in accounting, you do have to fulfill a specific number of accounting and accounting-related classes, so pursuing a major in the field can help you satisfy these requirements.
Once you meet your state's CPA stipulations, you must pass the Uniform CPA exam. After you earn your CPA license, you need to complete continuing education hours to maintain your credential. Each state sets its own rules about the number of required continuing education hours that CPAs must complete.
Learn how to earn a CPA certification
Optional Certifications and Degrees
Although not an industry requirement, many tax accountants earn a master's degree in accounting or taxation. Graduate-level education in the field can expand tax accountants' career opportunities and salary potential.
A typical master's in accounting program explores topics like financial regulations, financial management, and advanced accounting theory. If you choose a general accounting master's degree, you may be able to add a concentration in tax accounting or prioritize taking classes that focus on taxation. A master's in taxation usually focuses on taxation fundamentals, tax law, and tax research.
You can also pursue an enrolled agent (EA) credential from the Internal Revenue Service (IRS). Becoming an EA allows you to take responsibility for most tax-related situations for a client, including speaking to federal authorities on their behalf. You don't need a specific degree or a certain amount of professional experience to become an EA, though the credential does require you to pass the IRS special enrollment examination.
Enrolled agents must renew their certification with the IRS and complete 72 hours of continuing education every three years.
Required Experience for a Tax Accountant
There is no industry standard for how much experience you need before becoming a tax accountant. Many of these professionals start as general accountants in junior roles before developing specialized taxation knowledge. If your education includes a lot of tax accounting coursework, you may be able to go straight from school into a professional tax accountant position.
If you can, accrue professional experience in tax accounting while you earn your degree through accounting internships and practic*ms. These experiences provide valuable opportunities to develop real-world skills and can lead to job offers after graduation.
Tax accountants who want to earn their CPA licensure must earn 1-2 years of relevant professional experience. Each state mandates their own requirements for work experience.
Should I Become a Tax Accountant?
Becoming a tax accountant can be the right fit for professionals who want to specialize their accounting skills. However, it's important to understand what this job entails and how you qualify for it. As we outlined above, it takes time and effort to learn about taxation and pursue optional credentials like master's degrees or CPA and EA licensure.
Tax accountant careers typically offer a positive return on investment, as accounting professionals are in high demand and jobs in the field pay higher-than-average wages. Another thing to keep in mind is that tax accounting can be very stressful during tax season, as this is the busiest time of year for professionals in this subfield.
The Job Hunt
Start the hunt for your first tax accountant job while you're still in school. Take advantage of your school's career development office and any professional development help they offer. Services like resume workshops, mock interviews, career fairs, and access to special job boards can all be very helpful.
Other ways to find tax accounting roles include recommendations from mentors, professional accounting groups' job listings, and networking opportunities at annual industry conferences.
Below, we highlight four job boards where you can find tax accountant jobs.
- eTaxJobs: This job board focuses on tax-related jobs around the world, including tax accountant careers.
- American Accounting Association Career Center: The AAA Career Center features jobs from accounting employers across the U.S.
- iHireAccounting: This job board focuses exclusively on accounting jobs.It includes nearly 25,000 employers and over 64,000 accounting career openings as of May 2024.
- Indeed: One of the most popular general job boards on the internet, Indeed showcases many accounting and tax-related career opportunities.
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Upward Mobility
A career in tax accounting can lead to roles with more responsibility and higher wages. Advanced roles for tax accountants include:
- Management Accountants: Management accountants often start as general accountants and move into management and administrative roles as they accrue experience. These professionals typically work with other upper-level employees, using their accounting insights to help organizations make their decisions. They may also supervise other accountants. Management roles usually require at least five years of relevant experience. Payscale reports management accountants earn an average annual salary of $71,030 as of December 2023.
- Financial Managers: Some financial managers start their careers in accounting. Like management accountants, these workers use financial and accounting insights to help employers' decision-making, creating financial reports and developing budget plans. Financial managers typically need at least five years of relevant professional experience in other business or financial roles. The BLS reports financial managers earned a median annual salary of $156,100 in 2023.
FAQ About How to Become a Tax Accountant
What is the difference between a tax accountant and a tax preparer?
A tax preparer helps clients file taxes and talks with tax authorities on their clients' behalf. A tax accountant may do some of that work, but their role is more advanced, so they can offer more services.
Do you need a license to be a tax accountant?
Many tax accountants earn a CPA license, though it is not a requirement for the job. Some employers may prefer CPA-licensed tax accountants.
What is the highest salary for a tax accountant?
According to Payscale, the top 10% highest-paid tax accountants earn salaries higher than $81,000 as of May 2024. The average salary for these professionals is $61,070.
Is being a tax accountant hard?
Whether being a tax accountant is hard depends on your strengths. Tax accountant jobs require a college education and good math, organization, and analytical skills. You must also be detail-oriented and able to navigate the stressful tax season every year.
