Passive income: NO

Earning passive income directly from a tax preparer side hustle is unlikely for most people. The nature of tax preparation requires active involvement, especially during tax season. To make it passive, one would need to establish a firm with a team of preparers and automate client acquisition and service delivery, which requires significant upfront investment and management skills. Most people do not reach this level; only a few outliers with business acumen and resources do. Many believe they can automate the process easily, but this is misleading as tax laws change frequently, requiring ongoing expertise and updates. Passive income is more realistic for those who can scale their business and delegate effectively, but not for individual preparers working solo.