What's the difference between an EA and a CPA?

Licensing path differs significantly. An EA earns the credential by passing the three-part Special Enrollment Examination administered by the IRS, covering individual tax, business tax, and representation. There is no degree requirement and no state-level licensing. A CPA earns the credential through state boards of accountancy, requiring 150 college credit hours including specific accounting coursework, the four-part Uniform CPA Exam, and 1 to 2 years of supervised experience. The CPA exam covers auditing, financial accounting, regulation (which includes tax), and business environment.

Practice scope differs accordingly. EAs focus exclusively on taxation, since their entire credential is built around it. They prepare returns, plan tax strategy, and represent taxpayers in IRS examinations and appeals. CPAs work across a broader range: tax (yes), but also financial statement audits, attestation engagements, corporate finance, forensic accounting, and management consulting. Many CPAs do not focus on tax at all.

Representation rights are equal at the IRS. Both EAs and CPAs have unlimited representation rights, meaning they can represent any taxpayer on any tax matter before any IRS office. Attorneys also have this right. Anyone else (tax preparers without these credentials, including many storefront preparers) has only limited representation rights, restricted to returns they prepared.

For a 1099 contractor at $100K to $300K of income, the practical question is who knows your tax situation deeply. An EA who specializes in self-employed individuals will often be more current on Schedule C nuances, S-corp election timing, SE tax planning, and quarterly estimates than a generalist CPA whose practice spans audit and corporate work. Conversely, a tax-focused CPA at a small firm can have equivalent or deeper knowledge. Credential alone does not determine quality. Specialization does.

Cost ranges overlap. Both EAs and CPAs at small firms typically charge $1,500 to $3,000 for an individual tax return with Schedule C, plus separately for tax planning and quarterly estimates. Big-4 CPAs charge multiples of that. The pricing premium for 'CPA' in firm names tends to come from the broader credential's audit and attestation use cases, not from a tax-skill premium.