Becoming a Tax Analyst: Job Description, Salary & Career Path

<table border="1"><tr><td><b>Degree Required</b></td><td>
Bachelor's degree</td></tr> <tr><td><b>Education Field of Study</b></td><td>
Accounting, business administration</td></tr> <tr><td><b>Key Skills</b></td><td> Analytical, attention to detail, communication, numeracy, time management, problem-solving, computer literacy</td></tr> <tr><td><b>Licensure or Certification</b></td><td> Pass Certified Public Accountant (CPA) exam</td></tr> <tr><td><b>Job Growth (2020-2030)</b></td><td> 7% (accountants and auditors)*</td></tr> <tr><td><b>Median Annual Wage (2020)</b></td><td> $73,560 (accountants and auditors)*</td></tr> </table><p><i>Source: *U.S. Bureau of Labor Statistics</i> </p><h3 id="section---WhatDoesATaxAnalystDo">What Does a Tax Analyst Do?</h3><p>Tax analysts prepare monthly, quarterly and yearly tax filings; research tax-related issues; ensure compliance with state, federal or international tax legislations; and prepare for tax audits. </p><p>They also advise companies on tax issues and explain relevant taxation regulations in a clear and understandable manner to clients. </p><h3 id="section---WhereCanTaxAnalystsWork">Where Can Tax Analysts Work?</h3><p>Tax analysts may work for individuals and companies, be employed by public accounting firms or law offices, or run their own independent consulting business. </p><p>As a tax analyst you can also specialize in particular areas such as auditing or international taxation. </p><h3 id="section---WhatEducationDoINeedToBecomeATaxAnalyst">What Education Do I Need to Become a Tax Analyst?</h3><p>To become a tax analyst, you need to complete a bachelor's degree program in accounting. Subjects you'll study typically include corporate taxation, individual taxation, auditing, finance for business and accounting research. </p><p>Some employers prefer a master's degree, but it is not required to become an accountant. However, you might need it to make up the required semester hours to become a Certified Public Accountant. </p><h3 id="section---DoINeedAdditionalCertification">Do I Need Additional Certification?</h3><p>While you don't need additional certification to get started in your career, any accountant wanting to file reports with the Securities and Exchange Commission (SEC) needs to be a Certified Public Accountant (CPA). This highly recognized and respected certification also enhances credibility and gives you an edge over the competition. </p><p>In order to become a CPA, you have to pass a CPA exam with a minimum score of 75 on a scale from 1 to 99. You also have to sit an ethics exam with the American Institute of CPAs. </p><p>In most states you also have to earn 150 credit hours. This is more than a traditional four-year bachelor's degree. In order to meet this requirement, some universities offer combined bachelor's and master's programs. </p><p>Lastly you have you complete work experience, which can range from six months to two years, with the exact requirements varying from state to state. </p><h3 id="section---WhatIncomeAndJobGrowthCanIExpect">What Income and Job Growth Can I Expect?</h3><p>The median salary for accountants and auditors, which includes tax analysts, is $73,560 a year, according to the U.S. Bureau of Labor Statistics. </p><p>Meanwhile <i>PayScale.com</i> puts the median annual salary for tax analysts at $59,458, and the median salary for mid-career tax analysts at $62,027 as of 2021. </p><p>Job growth for accountants and auditors between 2020 and 2030 is forecast at 7%, which is the same as the average, according to the U.S. Bureau of Labor Statistics.</p>