Essential Tips to Prevent Mistakes on Your First Tax Return

3 Pro Tips for Avoiding Mistakes on Your First Tax Return

Filing your first tax return may feel like a weighty undertaking, but it doesn't have to. Keep reading to learn how you can avoid making mistakes.

1. Do not jump the gun

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.

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.

2. Know your filing status

Know your filing status to ensure accurate tax preparation. Understanding the five IRS filing statuses and their implications can help determine your tax liability, deductions, and credits.

3. Know it's okay to ask questions

U.S. tax laws are complicated, and it's okay to ask questions. Reach out to IRS resources for guidance and clarity on tax-related queries. Don't hesitate to seek help and ensure your tax filing is error-free.