Beating the Tax Return Blues: Conquer Your Procrastination
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We've all faced it - the dread of filing a tax return. But with the right mindset and approach, you can conquer your fear and tackle that tax-related chore once and for all!
Whether the deadline is drawing near, or you're days away from the final bell, some taxpayers still find themselves procrastinating. To discover the reasons behind this common behavior, we chatted with behavioral economist Thomas Mathar.
Q: Mr. Mathar, why do some taxpayers delay filing their tax returns?
Thomas Mathar: People often postpone complex or unpleasant tasks, which can include tax returns - hence, the classic case of procrastination. From a rational perspective, early submission could even score a refund. But on the flip side, as revealed by behavioral science, tax returns are complex, offer no immediate reward, lack social pressure, and require action only when there's a deadline.
Q: What's the root of the fear and aversion towards filing tax returns, and how can it be overcome?
Aversion to tax returns is usually emotionally-driven and based on past experiences or inaccurate assumptions. A change in perspective might be the trick: Instead of seeing it as a dreadful, but necessary, task, view it as an annual financial check-up with the potential to bring greater control over your financial situation.
Q: How should those affected take action and get the job done earlier in the year?
- Motivational techniques: Tie the creation of your tax return to a positive activity, like enjoying a treat, or reward yourself with a break after each completed section.
- Break it down: Divide the task into manageable, smaller steps, like organizing your receipts first.
- Social pressure: Set a tax-filing date with a friend or partner, or seek motivation from knowing that many people within your circle have already submitted their returns.
Dr. Thomas Mathar leads the Center for Behavioral Research at Aegon UK, a British provider of investment and financial services. Here, he spearheads large-scale studies on instincts, motivators, abilities, and environmental factors driving or hindering people's financial decisions.
Tips for Overcoming Procrastination in Tax Filing
- Know Thyself: Identify your motivation for avoiding the task. Understanding the root cause will help you conquer it effectively.
- Embrace the Pleasure: Leverage both pain-avoiding and positive incentives. The fear of penalties can motivate, as can the anticipation of a potential refund.
- Minimize Distractions: Set aside a dedicated time and space conducive to productivity.
- Prep Your Materials: Ensure all necessary documents are organized and ready, including W2 forms, receipts, and other financial records.
- Get Assistance: Opt for tax preparation software or seek professional help if the process feels overwhelming.
- Be Informed: Familiarize yourself with the tax filing process to reduce anxiety.
- Celebrate Your Success: Treat yourself to something enjoyable after successfully submitting your tax return.
By applying these strategies, tax filing will be less daunting and more achievable!
Happy filing! 💰📝🌟 🎉
Relevant Enrichment Insights
- Preparation: Start preparing your tax-related documents throughout the year to simplify the process during tax season.
- Online Resources: Leverage mobile apps and online platforms for flexible and effortless filing.
- Ask an Expert: Don't hesitate to seek advice from a tax professional or lean on online resources like IRS Free File.
- Community Support: Join forums and groups for tax-related advice and crowdsource your questions to make the process smoother.
- Delaying the submission of a tax return is often a result of procrastination, which people exhibit when faced with complex or unpleasant tasks.
- The fear and aversion towards filing tax returns can stem from past experiences or inaccurate assumptions, so understanding the root cause is essential for overcoming it.
- To beat the tax return procrastination, you can employ self-motivation techniques like tying a positive activity or reward to tax filing, breaking the task into smaller steps, or setting a tax-filing date with a friend.
- Moreover, staying well-informed, minimizing distractions, getting assistance with tax preparation software or professionals, and celebrating your success after submitting the tax return are effective strategies to tackle procrastination.
