Beating the Tax Procrastination Battle: Tricks for Cracking the Code
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Got tax returns lurking in the back of your mind? You're not alone in this common struggle, as the fear of complex documents, anxiety about making mistakes, and the hope for a future windfall can all cloud our judgment. But fortune favors the prepared, and understanding the psychology behind procrastination can help you power through those tedious forms.
We chatted with behavioral economist and author, Thomas Mathar, to get his take on why some of us find filing taxes so daunting and what we can do to get ahead of the game.
Mathar, why do some taxpayers struggle to file their returns on time?
Thomas Mathar: Let's face it, procrastination is human nature. We tend to avoid tasks that are complex or unpleasant, even if there's a clear benefit to getting them done early—such as a partially refunded tax bill.
But what exactly makes taxes so intimidating?
Typically, it's the combination of the tax system's complexity and our present bias[2][5]. Many people find the terms and conditions confusing, which deters them from filing their returns. Meanwhile, the effort required to tackle the task seems less rewarding because the benefits are mostly in the future.
So how can we break free from the shackles of procrastination?
The key is to embrace a new perspective! Instead of saying, "filing taxes is a pain but necessary," try thinking, "how great would I feel if I had that responsibility off my plate?" Instead of concentrating on the drudgery, view the tax return process as an annual financial checkup—an opportunity to gain control over your finances.
Here are some concrete strategies that can help you tackle those tax returns earlier in the year:
1. Divide and Conquer:- Tackle the small steps: Don't try to take on the entire return at once. Instead, start by gathering your receipts and tackle one section at a time.- Use a buddy system: Make a date with a friend or partner to sit down for an hour and forge ahead together.
2. Reward Yourself:- Delayed gratification: Treat yourself to a piece of cake or a break for each completed section.- Set deadlines: Set several reminders leading up to the deadline to stay on track.
3. Simplify the Process:- Streamline your forms: Use tax software that simplifies the process by asking clear, step-by-step questions.- Hand it off to the pros: Consider hiring a tax expert to handle complex aspects, saving you from decision fatigue.
4. Conquer Your Fears:- Reframe the task: Focus on the relief and rewards of completing your taxes early, such as faster refunds and less anxiety.- Practice self-compassion: Remember procrastination is a common response to complex tasks and not a reflection of your worth.
5. Embrace Instant Gratification:- Build momentum: Take the smallest action immediately whenever tax thoughts cross your mind. Open the software, gather documents, or start a section, no matter how small.- Surround Yourself with Reminders: Keep your tax documents in a prominent location to keep the task top of mind.
To sum it up, procrastination is a normal human response to stressful situations, but knowledge is power—and understanding the psychology behind our reluctance to file taxes is half the battle. Embrace a new perspective, break down the process, and tackle it one step at a time. You'll feel like a weight has been lifted off your shoulders when it's finally done!
[Source: ntv.de, Christoph Jaensch, dpa]
[2] Behavioral Insights into Tax Procrastination – Enrichment Data[3] Strategies to Overcome Procrastination - Enrichment Data[4] Summary Table: Behavioral Strategies for Tax Filing - Enrichment Data[5] Present Bias - Enrichment Data
- The fear of complex documents, anxiety about making mistakes, and the hope for a future windfall can all contribute to procrastination when it comes to filing taxes, as mentioned in the community policy.
- One reason why some taxpayers struggle to file their returns on time is due to the combination of the tax system's complexity and our present bias, states Thomas Mathar, a behavioral economist and author.
- To conquer the shackles of procrastination, try thinking about filing taxes as an annual financial checkup, providing an opportunity to gain control over your personal-finance, suggests Mathar.
- A strategy to simplify the tax process is to use tax software that asks clear, step-by-step questions, recommended for overcoming decision fatigue and minimizing vocational training required to comprehend tax forms.
