Conquering the Dread of Tax Season: Beat the Procrastination and File Like a Pro
Adopting this method: Here's the lowdown.
Got that sinking feeling every time tax season rolls around? You're not alone. Many of us find filing our tax returns a less-than-thrilling task, but leaving it until the last minute can lead to stress and missed opportunities. Instead, let's dive into some helpful strategies to tackle those tax demons and get your return filed early!
We spoke with Thomas Mathar, a behavioral economist, to gain some insights into why some folks shy away from tax season and how to break the cycle.
Why delay tax return filings, and what can we do about it?According to Mathar, procrastination is a common response to unpleasant or complex tasks. From an economic perspective, it'd make sense to finish the taxes early and earn a refund if one is due. However, from a behavioral perspective, several factors come into play:
- Complexity: The tax system can be confusing, and the fear of errors is a real deterrent.
- Lack of immediate reward: The effort put into the tax return occurs in the present, while any refund - if any - is in the distant future.
- No social pressure: Whether you submit your return early or late, no one knows.
- Lack of urgency without deadline pressure.
So, how can you flip the switch from dreading tax season to facing it with confidence?
The power of perspectiveThe aversion to filing taxes is often emotionally driven, so changing the narrative can be helpful. Instead of viewing taxes as a chore, think of it as a financial check-up that gives you a better handle on your finances.
Beat procrastination with clever tactics
- Make friends with smaller steps: Divide the task of filing taxes into smaller, manageable bits. For example, first gather your receipts, then tackle each section of the return.
- Find a buddy: Sit down with a friend or partner for an hour to tackle the tax return together. Social pressure can be a powerhouse motivator.
- Reward yourself: Treat yourself to a piece of cake or take a break after each completed section.
- Take advantage of automation: Use tax software or services to streamline the process and make it less overwhelming.
- Set deadlines: Create a schedule with specific deadlines for each step of the tax filing process.
- Reach out for help: If needed, work with a tax professional or rely on online resources for guidance.
- Be kind to yourself: If difficulties arise, remind yourself that you're taking steps towards a better financial future.
Let's embrace the new tax season with a proactive approach and watch the stress of waiting until the last minute fade away!
Thirdly, understanding the norms that contribute to procrastination can help in defeating them. The complexity and fear of errors within the tax system can induce procrastination, but viewing it as a crucial part of personal-finance management could alter this mindset.
Vocational training programs might be of assistance in increasing financial literacy and reducing the dread associated with tax season. Development of vocational skills in understanding taxes, finance, and business could help individuals tackle their returns with confidence.
A community policy promoting early tax return filings could instill a sense of urgency and reduce procrastination. In addition, offering subsidies or incentives for early filers could further encourage individuals to take an active role in their personal-finance management.
Lastly, don't forget the importance of reinforcement. Treating oneself as a reward for each completed section of the tax return forms not only serves as a motivator but also reaffirms the importance of taking care of personal finances.
