Risky • Entry-Level

Tax Preparer.

Prepare tax returns for individuals or small businesses.

Salary$50,560per year
Openings10,400per year
Growth+4%10 year

Example job titles

Certified Income Tax Preparer (CTP)Corporate Tax PreparerEnrolled AgentIncome Tax PreparerMaster Tax AdvisorTax AdvisorTax AssociateTax ConsultantTax PreparerTax SpecialistTax Analyst

Why This Rating.

[01]

This role is risky

Most tax preparation work follows well-defined rules that AI can already handle faster and more accurately than humans. While some clients value a personal relationship with their preparer, the core task-applying tax code to financial data-is highly automatable. This role faces significant displacement as AI-powered tax software continues to improve.

Risks & Opportunities.

[02]
[01] Risks
44%

of tax firms using generative AI deploy it daily[1]

The structural threat to tax preparers is not AI replacing professionals but AI-powered consumer software replacing the client. TurboTax, H&R Block, and similar platforms now handle most straightforward W-2 returns with embedded AI guidance, shrinking the addressable market for simple seasonal prep work [U.S. Bureau of Labor Statistics, Sep 2024]. BLS still projects faster-than-average employment growth (5–6%) overall, but that growth is concentrated in small-business, self-employment, and complex return work where software falls short [U.S. Bureau of Labor Statistics, Sep 2024]. Thomson Reuters found that 44% of tax firms using generative AI already deploy it daily, compressing the skill floor while raising the ceiling for what clients expect [Thomson Reuters, Jun 2025].

[02] Opportunities
93%

of accounting firms use AI to enhance advisory services[2]

The 72.8% augmentation rate on the explaining-tax-laws task is a durable signal: AI surfaces answers quickly, but clients need someone to interpret those answers and connect them to their specific situation [Intuit QuickBooks, Jul 2025]. Enrolled Agent (EA) and CPA credentials unlock IRS representation rights, the one category of tax work that software can't perform. The Intuit 2025 survey found 93% of accounting firms now use AI to enhance strategic advisory services, and firms making this shift report higher revenue per client [Intuit QuickBooks, Jul 2025]. The AICPA sees the profession accelerating toward advisory, where judgment and relationship skills define the value delivered [CPA.com / AICPA, Jun 2025].

Observed AI Impact.

[03]

AI assists but needs guidance

Share of AI conversations where this task is handled collaboratively, with a human steering.

Explain tax laws
Explain federal and state tax laws to individuals and companies.
71% augmented
Med usage
Advise on form completion
Furnish taxpayers with sufficient information and advice to ensure correct tax form completion.
51.4% augmented
Med usage
Verify data/totals
Check data input or verify totals on forms prepared by others to detect errors in arithmetic, data entry, or procedures.
50% augmented
Med usage

AI hasn't figured these out

Low or no AI usage recorded for these tasks.

Compute taxes owed
Compute taxes owed or overpaid, using adding machines or personal computers, and complete entries on forms, following tax form instructions and tax tables.
No data
Apply deductions/credits
Use all appropriate adjustments, deductions, and credits to keep clients' taxes to a minimum.
No data
Prepare tax returns
Prepare or assist in preparing simple to complex tax returns for individuals or small businesses.
No data
Interview clients
Interview clients to obtain additional information on taxable income and deductible expenses and allowances.
No data
Review financial records
Review financial records, such as income statements and documentation of expenditures to determine forms needed to prepare tax returns.
No data
Answer/plan client taxes
Answer questions and provide future tax planning to clients.
No data
Calculate prep fees
Calculate form preparation fees according to return complexity and processing time required.
No data

Data: Anthropic Economic Index (Jun 2026) · Real-world Claude usage patterns across occupations

How to Adapt.

[04]
[01] Already in this role?

Start using whatever AI research tools are built into your tax software platform. Drake, Lacerte, and ProConnect all now include AI-assisted research features. Use them to handle the lookup work so your time goes to the judgment calls AI cannot make [Intuit QuickBooks, Jul 2025]. Over the next six months, pursue the Enrolled Agent credential if you do not have it. EA gives unlimited IRS representation rights and positions you for audits, collections, and appeals work that self-service software will never touch. The AICPA is clear that advisory services are where the profession is heading [CPA.com / AICPA, Jun 2025].

“AI isn't taking over our jobs. It's giving us more room to do the work that matters.”

Dan Luthi, Partner, Ignite Spot Accounting Services

“AI is fundamentally reshaping the accounting profession, accelerating the move toward more strategic advisory services.”

Erik Asgeirsson, President and CEO, CPA.com

[02] Thinking of entering?

Do not enter tax prep as a seasonal W-2 filer. That segment is being compressed by consumer software. Instead, target small business, self-employed, and investment-income returns where the tax picture is complex enough that clients need ongoing professional help [U.S. Bureau of Labor Statistics, Sep 2024]. Get an AFSP (Annual Filing Season Program) designation first to establish IRS credentials, then pursue the EA exam. Thomson Reuters found that professionals who adopt a visible AI strategy are twice as likely to see revenue growth, entering with both technical credentials and AI fluency puts you ahead of incumbents who are still catching up [Thomson Reuters, Jun 2025].

“AI is not going to disrupt the accounting profession, but it will change what an accountant does.”

Mark Koziel, President and CEO, AICPA

“Organizations with visible AI strategies are twice as likely to experience revenue growth compared to those with informal or ad-hoc approaches.”

2025 Future of Professionals Report, Thomson Reuters

The Career Map.

[05]

The full BLS career track, plus relevant emerging AI-native paths. Click any role to see how to transition to it.

Entry

Tax Preparer

★ This Role

Bookkeeper

43-3031.00

Risky

Automated Tax Workflow Coordinator

✦ Emerging

Mid-Level

Accountant

13-2011.00

Solid

AI Tax Compliance Analyst

✦ Emerging

Senior

Loan Officer

13-2072.00

Solid

Credit Analyst

13-2041.00

Exposed

Financial Advisor

13-2052.00

Strong

Financial Risk Specialist

13-2054.00

Solid

Credit Counselor

13-2071.00

Strong

Insurance Underwriter

13-2053.00

Shifting

Algorithmic Deduction Specialist

✦ Emerging

Lead or Specialist

Fraud Investigator

13-2099.04

Solid

Financial Examiner

13-2061.00

Shifting
Principal

Financial Manager

11-3031.00

Solid

Sources

0.Tax Preparer Occupational Data- O*NET Online

  1. 1.2025 Future of Professionals Report- Thomson Reuters, Jun 2025
  2. 2.Accountants Embrace AI and Strategic Advisory Services to Fuel Growth, According to 2025 Intuit QuickBooks Survey- Intuit QuickBooks, Jul 2025
  3. 3.The Future of Jobs Report 2023- World Economic Forum, May 2023
  4. 4.Jobs on the Rise 2024- LinkedIn Economic Graph, Jan 2024
  5. 5.Future of Jobs 2023- World Economic Forum, May 2023