25% of Gen Zers say they’ll need a therapist to deal with tax filing stress

25% of Gen Zers say they’ll need a therapist to deal with tax filing stress, per CNBC.

Taxes are universally disliked, but they can be especially daunting for younger generations who may be filing for the first time.

According to a recent Cash App Taxes survey, 1 in 4 Gen Z taxpayers feel that they will need therapy to cope with the stress of tax season. Additionally, 54% of them reported either crying while filing taxes in the past or expecting to cry this year.

Richard Pianoforte, managing director of tax at Fiduciary Trust International, finds it surprising that the number of young people seeking therapy isn't higher. He notes that schools often do not adequately prepare students for tax filing, which contributes to the anxiety.

Even understanding the necessary documents for filing can be overwhelming, as 62% of first-time filers admitted they were unsure about where to obtain their W-2s or 1099s.

Gen Z is planning to retire earlier than any other generation, with an average retirement age of 54, according to Empower.

Empower's "Financial Happiness" study indicates that 59% of Americans, including 72% of Millennials and 67% of Generation Z, believe that money can buy happiness, with the perceived price tag being $1.2 million. However, 17% associate financial contentment with reaching a specific net worth.

The study explores the concept of "Return on Happiness," highlighting factors such as timely bill payment (67%), freedom from debt (65%), affording daily luxuries without worry (54%), home ownership (45%), spending on experiences with loved ones (53%), and retirement on their terms (37%) contributing to happiness. Some Americans anticipate delaying retirement by an average of three years, while those without a financial plan expect a five-year delay.

The study underscores the importance of financial planning, with 63% of respondents recognizing good money advice as key to achieving financial happiness. Financial stress is attributed to inflation (81%), rising costs (81%), interest rates (66%), and student loans (32%). The study emphasizes that a well-defined financial plan contributes to greater happiness, with 73% emphasizing its importance.