3 Pro Tips for Avoiding Mistakes on Your First Tax Return

You know you're an adult when you file your first tax return. Oh, and by the way, you'll be doing it for the rest of your natural life. The good news is that millions of us file our returns right around the time you do, and we've picked up some pretty great tips along the way. Here are three of them.

1. Do not jump the gun

I cannot overemphasize this enough: Do not rush to get your tax return filed. Even if you expect a fat refund, take the time you need to gather all the documents required to file an accurate return. They may not be double-naught spies, but the IRS is really good at figuring out when a person is fibbing and will have no trouble auditing your return.

It's not as though you'll mean to do anything wrong. Let's say you're counting the days until a tax refund hits your checking account but still don't have the W-2 or 1099 you need. You decide to estimate how much you earned just to move things along. You file your return and wait for the money to roll your way. What you may not be aware of is that the IRS receives copies of your income and compares those amounts to the return you file. If there's a discrepancy, your return is flagged, and you'll receive a letter explaining what's going on.

The lesson here is that jumping the gun is more likely to slow down the entire process than to speed it up.

2. Know your filing status

Whether you're using tax preparation software or hiring a professional tax preparer to complete your return, you'll be asked about your tax status. It's one simple question, and yet, it's so important. There are five IRS filing statuses, and which one you use affects:

• If you're required to file a return
• If you should file a return to receive a refund
• Your standard deduction amount
• If you can claim certain tax credits
• The amount of tax you need to pay

Here are the five filing statuses you'll be asked to choose from:

• Single: For taxpayers who are unmarried, divorced, or legally separated under state law.
• Married filing jointly: If you were married by Dec. 31, 2023, you can file a joint tax return with your spouse. When a partner dies, the remaining spouse can still file a joint return for the year they died.
• Married filing separately: It's possible that you'll owe less tax if you file separately. If that's the case, you have the option of choosing this status.
• Head of household: You can file as head of household if you paid more than half the cost of keeping up a home for yourself and a qualifying person living in the home for half the year. Now, here's where things get tricky. You'll need to determine if the person or people living with you are considered "qualifying." This IRS publication spells it out nicely.
• Qualifying widow(er) with dependent child: This status may apply if your spouse died during one of the two previous years and you have a dependent child.

It's possible that more than one of these statuses applies to your situation. The aim is to figure out which one leaves you with the lowest tax bill.

3. Know it's okay to ask questions

U.S. tax laws are complicated, and no one expects you to feel 100% confident the first time you file taxes. Just know that help is available when you need it. Here are several IRS resources:

• You can find copies of forms, publications, and helpful hits any time of day by visiting the IRS website at www.irs.gov.
• You can get answers to federal tax questions 24 hours a day by calling 800-829-1040.
• If you need tax forms or instructions for current and prior years, they're available by calling 800-829-3676.
• You can listen to recorded messages covering more than 100 tax topics by calling 800-829-4477.

Finally, just know there's no reason to stress out each year at tax time. As long as you carefully provide accurate information, it should be a breeze.