ADHD Tax: What It Is and How to Avoid It

Key Takeaways - (January 2025) What is an ADHD Tax? And How to Minimize Its Impact

Approximately 15.5 million American adults suffer from attention-deficit/hyperactivity disorder (ADHD).

If you have ADHD, you may be paying a particularly high price for many things, including goods, services, interest, and penalties. It can be tough to keep a job, and trying to budget and save money for the future may feel virtually impossible.

This issue is known as the ADHD tax, a hidden financial burden placed on individuals with the disorder. Continue reading to find out how it affects people's financial well-being and learn ways to minimize its impacts.

What are the Requirements for an ADHD Diagnosis?

Individuals with ADHD often have trouble concentrating, finishing tasks, and staying organized. They may also have a hard time controlling their movements, and often fidget and feel severely restless. In addition, they may struggle with maintaining self-control and have problems with impulsivity, a common characteristic of the condition.

Shopping and managing finances can be really tough for individuals who have attention deficit hyperactivity disorder. The additional financial burden often faced by those who have ADHD is often referred to as the "ADHD tax."

Some examples include:

• Failing to make timely credit card payments and being charged additional fees and higher interest rates.
• Obsessively accumulating credit card debt, incurring excessive and often costly debts.
• Difficulty prioritizing.
• Making impulse purchases at the wrong time, buying things when they are too expensive, or buying things you don't really need.
• Failing to take care of one's belongings, resulting in them needing to be replaced more frequently than necessary.

Jesse J. Anderson, a Washington-based author of the book "Extra Focus: The Quick Start Guide to Adult ADHD," has ADHD himself and understands firsthand how challenging it can be for people with the condition to navigate a world that is not set up to accommodate them.

Trying to fit in with a system that has rules that don't align with who you are.

When you have ADHD, small issues can really pile up. Tiny mistakes can eventually turn into big problems. For me, one thing I struggle with is prospective memory, which is basically just remembering to remember something so I can take care of it.

For instance: One might sign up for a no- or low-cost service thinking they'll cancel it before the price increases, but then they'll simply forget about the cancellation date.

It's really true that out of sight is out of mind for many people with ADHD," Anderson says. "Something as important as paperwork can easily get overlooked once I stow it away in a drawer. It's a constant problem - important tasks pile up, like mail stacking up on my kitchen counter.

Olivia Dreizen Howell, CEO of online registry platform Fresh Starts Registry, was diagnosed with ADHD. She said that despite her ability to multitask well, the constant inner chatter she experiences with ADHD can be overwhelming, making it really tough to follow through on things.

I have both executive functioning concerns when it comes to tasks like returning items I've bought online.

This is shown through things like labeling a box, putting the label on the box, then the items inside, and putting the box in the car. Frequently, I wind up putting the items in the car and driving around with them for a while! I also experience anxiety getting the task finished, as a significant part of ADHD is difficulty completing a task.

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I tend to overbuy household essentials because I forget that I've already purchased them, which leads to waste and having to rebuy expired items. If I don't physically see the item, I often forget it's even in the house, causing me to buy duplicates.

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Having a partner who has ADHD can also be particularly challenging for a household's financial stability.

Rachel Herbst, a freelance marketing consultant based in Apex, North Carolina, experienced difficulties in establishing a financial alignment with her husband, who has been diagnosed with ADHD.

He was overwhelmed, depressed, and unsure of what to do," Herbst says. "He was having a huge struggle with executive dysfunction.

When adults who have the responsibility of supporting spouses and children make financial decisions that aren't thoroughly planned out, it can disrupt not only short-term goals but also long-term goals, ultimately affecting the stability of the entire household.

Anderson expresses that work can be a significant problem.

People with ADHD can switch from zero to a hundred really quickly, either becoming very excited or very upset. For instance, if a supervisor says something in a meeting that's not sitting well with you, you'll react right away. This can result in losing your job or deciding, 'I'm done with this place.' I've had around 30 different jobs. According to Anderson, people with ADHD often get easily bored, and that can feel extremely frustrating.

Lack of financial stability can be particularly troublesome when dependent individuals are involved.

Overlooking payment due dates for credit cards and loans can end up causing more problems than just for the borrower. Ignoring these payments can lead to lower credit scores, additional fees, and higher interest rates, ultimately making it more costly and challenging for the borrower to secure a home loan.

This can be especially frustrating for people with ADHD because they might have had the money available, but missed the deadline for sending it.

Shopping spontaneously can also be a challenge, because unplanned purchases might drain funds needed for important expenses.

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Determining the correct diagnosis is the first step towards controlling the financial consequences of the disorder, Herbst says.

“Since getting his ADHD diagnosis, it's been eye-opening and has really helped my husband understand himself better.”

Creating a concrete financial plan has really worked for us and helped us stay on track. Plus, making a habit of checking in together regularly without overwhelming him has been a huge mindset shift.

Anderson, who also writes a weekly newsletter about ADHD called Extra Focus, provides advice to others with the disorder on minimizing the difficulties associated with it. Among his key recommendations, are:

• For payments that are due, set up reminders with your bank so notifications arrive in the form of texts or emails. This also works for time-sensitive special deals, such as offers with limited validity. "It really helps with free trials," Anderson says. "Before I agree, I add a calendar reminder about when I need to cancel."
• “They want you to notice it,” Anderson says. “Leave things out there in front of you. Specifically for tasks I need to accomplish, I write them down on a big whiteboard that's positioned in a location I frequently pass through. Some of these strategies may seem silly or childish, but they're effective."
• Always try new things," Anderson says. "Set reminders with stickers for when bills are due, then tackle something else that's effective. It's incredibly motivating for the brain.
• One of the best ways to stay on track financially is to let others know you have ADHD and ask for their help. "I say, 'If I forget, please tell me,'" Anderson advises.

Talking openly with people has helped Howell manage her shopping more effectively. She asks others for assistance in organizing her thoughts so she can easily handle a big return, especially when it involves several labels or a variety of items she needs to send back.

Howell is also more cautious when shopping online, making sure the return policy is simple and hassle-free. She identifies items more clearly by using transparent boxes, allowing her to see her purchases and avoid buying things that might not be necessary, now or in the future.

but not just over money in general.

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