Kick Your Tax Anxiety to the Curb: Trick Your Brain into Loving Tax Season
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Ever been a procrastinator? We all have, and tax filing is no exception. But why let the dread of handling tax documents control you? Let's learn how to combat that tax fear and make the process less daunting.
Tax deadlines may fall in May, July, or September, but for some, tackling those taxes remains a task best left until the last moment. To uncover the reasons behind this procrastination, we chatted with behavioral economist Dr. Thomas Mathar.
Mathar, why do some taxpayers push off filing their tax returns?
Dr. Mathar: Well, humans tend to avoid unpleasant or complex tasks, and filing taxes often checks those boxes. From a rational standpoint, it makes sense to go ahead and file early, perhaps even receiving a refund. However, from a behavioral standpoint, we know a few things:
- First: Complexity can be off-putting. The tax system can seem confusing and intimidating.
- Second: There's no immediate reward. The effort you put in now yields a reward in the future.
- Third: There's no pressure to perform, as no one knows if you've filed on time.
- Fourth: A lack of immediate need means procrastination is common.
Where does tax fear originate, and how can it be tackled?
The anxiety around taxes is often rooted in negative past experiences or misconceptions. A fresh perspective can help ease that anxiety.
For instance, instead of thinking "Ugh, filing taxes is a hassle," you could think, "Alright, let's get this done. It'll feel amazing once it's out of the way." Rather than focusing on needless bureaucracy, view filing taxes as an annual financial check-up that puts you in control of your finances.
So, how can you get this chore out of the way earlier in the year?
Applying motivational strategies can help kick-start the process:
- Motivational Methods: Create a reward system for yourself, such as giving yourself a treat once the tax return is complete. Break the task down into smaller, more manageable chunks and celebrate each victory.
- Divide and Conquer: Don't let the entire task overwhelm you. Start by gathering all your necessary documents, like W-2 forms and deduction records. You could also schedule a specific date and time with a friend or partner to work together for an hour.
- Social Pressure: Knowing that friends or family have filed their taxes can add a sense of peer pressure and encourage you to follow suit. People tend to conform to social norms, so be part of the majority who files taxes on time.
What changes can be expected in tax filing in 2025?
Simplifying the process, making it more rewarding, and reducing hassle are key to more people filing their taxes promptly.
About the person: Dr. Thomas Mathar heads the Center for Behavioral Research at Aegon UK, a leading provider of investment and financial services. His research focuses on the instincts, motivations, abilities, and environmental factors that drive or hinder people in making better long-term financial decisions.
Strategies for Simplifying Tax Filing:
- Simplify the Process:
- Gather all documents first, such as your W-2 forms, deduction records, and previous year's returns. This helps streamline the process and reduces stress.
- Utilize online tax preparation tools or software to guide you through the filing process. These tools can help identify applicable deductions and simplify calculations.
- Make It More Rewarding:
- Educate yourself on the tax process to feel more empowered and less anxious. Understanding how taxes work can help you identify potential savings opportunities.
- Break down the tax filing process into smaller tasks and celebrate each completion. This can make the process feel more manageable and rewarding.
- Reduce Stress:
- Utilize free filing options such as the IRS Direct File tool for eligible taxpayers.
- Seek the help of a tax professional if needed to ensure accuracy and reduce anxiety about potential errors.
- Emotional Support:
- File taxes in a comfortable, distraction-free environment to reduce stress and enjoy the process.
- Approach taxes with a positive mindset, viewing them as necessary steps for financial health.
By adopting these strategies, you can conquer your anxiety about taxes, making the process more manageable and rewarding.
- Vocational training can help individuals tackle the complexities of the tax system more efficiently, reducing their tax fear and procrastination.
- To combat the dread of handling tax documents, one can employ strategies such as breaking the task down into smaller chunks, creating a reward system, and seeking help from friends or tax professionals.
- Understanding personal-finance concepts, including tax filing processes, can empower individuals and allow them to save money, reducing tax anxiety and encouraging timely completion.
- The community policy can include initiatives that simplify the tax-filing process, making it less intimidating and more rewarding for taxpayers, ultimately encouraging prompt filing of taxes each year.
