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Smoking as an addictive behavior is a leading cause of preventable death in the U.S. with a wide impact on physical and mental health. However, the mixed findings about the effects of quitting smoking on mental health make the topic worth studying. One way to improve the accuracy of estimates is to account for misreporting in smoking status and mental health as two self-reported variables that can bias results. Using BRFSS data this is the first study instrumenting smoking with cigarette tax through 2SLS, while also addressing misreporting in both smoking and the outcome. The applied approaches provide a more comprehensive picture of the mental health effects of quitting smoking. Findings help policymakers understand the impact of smoking control policies for more effective policymaking.