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Article Title: Conquering the Dread of Tax Returns: Tackling Procrastination and Submitting Early
Filing tax returns is a chore many of us put off - often until the last minute. But why is this, and how can we overcome the procrastination? We spoke to behavioral economist Thomas Mathar to find out.
Why do some folks delay filing their tax returns?
Mathar explains that people tend to procrastinate with unpleasant or complex tasks, citing it as a classic example. From a logical perspective, it'd make sense to file early, potentially even snagging a refund. But it's often not that simple.
Factors fuelling the dread and procrastination:
- Complexity: Tax systems can be daunting and confusing, leading to fear of making mistakes.
- Delayed gratification: The effort for the tax return is immediate, while any refund is sometime off in the future. Without immediate reward, motivation wanes.
- Lack of social pressure: No matter when you file, no one sees it. The lack of accountability reduces motivation.
- No immediate pressure: Without a pressing deadline, few feel the need to act.
Where does the fear stem from, and how can it be beaten?
Fear is often rooted in past experiences or misconceptions, but a fresh perspective can help. Instead of dwelling on the unpleasant task, focus on how good it'll feel to have it done. Compare filing taxes to an annual financial check-up, allowing you to regain control over your finances.
Breaking the procrastination cycle:
- Linking tasks to rewards: Associate tax-prep time with a treat, like a piece of cake or a break after each completed section.
- Motivation boost: Set a date with a friend or partner to work on taxes together for an hour. The social pressure can be motivating.
- Start early: Beat procrastination by tackling taxes early. Don't put things off until the last moment.
Tips for an easier tax season:
- Break the process into smaller, achievable steps.
- Use online tools for simplified management and reduced stress.
- Seek professional advice when needed to navigate intricacies and minimize anxiety.
- Stay informed without overwhelming yourself with information.
By understanding the reasons behind tax-related procrastination and employing these strategies, taxpayers can conquer their dread and submit their returns earlier in the year.
About Thomas Mathar: As head of the Center for Behavioral Research at Aegon UK, Mathar studies the factors that drive or hinder individuals from making sound financial decisions. A provider of investment and financial services, Aegon UK houses large-scale studies on instincts, motivations, abilities, and environmental factors affecting financial choices.
Sources: ntv.de, Christoph Jaensch, dpa
Keywords: Tax assessment, Income tax, Tax office, Tax return, Tax tips, Consumer, Taxpayers' Association, Employee
Enrichment Data Optimization:
- Simplify Process with Technology: Utilize tech tools to streamline calculations and easier tracking of tax-related data.
- Stay Informed Digitally: Stay up-to-date on tax requirements and changes through digital resources.
The community may implement a policy encouraging early submission of tax returns, thereby reducing the procrastination by promoting the use of vocational training courses on personal-finance and business management to aid taxpayers in understanding the complexities of the tax system and making informed decisions. To further incentivize early submission, the community could offer vocational training programs on tax preparation, reducing the perceived complexity of the task and providing immediate rewards through the acquisition of new skills.
Employing such strategies would highlight the advantages of early filing, such as a potential refund, and the annual financial benefits of staying informed about tax requirements, all while fostering a sense of accountability and motivation among taxpayers. This could lead to a more streamlined tax season for both individuals and the tax office, ultimately benefiting the entire community.
