Tax season has descended upon us and millions remain unprepared. At GenFKD, we're getting ready to tackle the next few weeks head on. Join us!
Posted by Gen FKD on Friday, April 6, 2018
I am afraid of my taxes. When I was completing them this year, I was beyond paranoid about getting something wrong. Taxes are so weighted. We hear about them constantly.That has built a fear around them. Millennials are in fact the most afraid of filing taxes out of all generations of Americans. It makes sense since millennials are generally uneducated about tax filing.As we have limited experience in the tax world. However, millennials’ inexperience and low financial literacy are hindering the ability to do taxes with confidence.
Interestingly, millennials are the quickest to submit their taxes. This is due to a fear of not getting them in on time. In a Nerdwallet study, 80 percent of millennials surveyed said they were petrified of making a tax mistake. This fear can be tied to millennials not having to de-code tax law that often. So, when seeking help to do their taxes, they are turning to parents and friends.Rather than contacting a professional or filling out the forms alone.
All of these fears are fed to us through our parents’ IRS horror stories.The worry of making a mistake is a result of the harsh penalties the IRS doles out — an error on your tax returns can mean a fine, being audited or even jail time. It is important to be educated and not be afraid of the tax filing you need to complete.
Importance of financial literacy
Since millennials do not have a ton of experience with taxes, the fear is mostly of the unknown. This is why self-education is vital, especially when dealing with tricky tax codes. Luckily, we live in a time where information is available with a quick online search. The best option to become financially literate is to get informed. Reading financial news and grappling with monetary concepts is challenging but can help enormously come tax season. The more you understand, the less confusing tax filing becomes, and the less likely you will be to make a mistake.
For those needing some extra assistance but cannot yet afford professional help, there are online services. Websites such as TurboTax or More Zero are online filling systems that guide you through the process. They also are highly informative and can provide a mini-education so that once your tax forms and documents get a little more complicated, you will have had some quality experience.
Millennials are inexperienced with taxes and fear them more than other generations. To combat that fear, financial literacy and education are the key. The more knowledge millennials can garner for themselves, the less frightening this tax season will be. By utilizing financial literacy websites, or using an online tax filing system, millennials can begin to educate themselves — with the goal of conquering our tax-related fears.
Have something to add to this story? Comment below or join the discussion on Facebook.
Header image: Shutterstock