How to tame the tax burden in Kenya

Taxation is an evil we have to deal with, whether we like it or not. As the adage goes if you can’t beat them, join them. You are advised to find legal means of taming your tax rather than evading it. The latter will only increase your trouble with the KRA.

You may begin by being punctual in remittance of your returns, usually before the 15 of April. Stop procrastinating on tying that note it could be your way of reducing the burden as married people payless as compared to singles.

Another way of reducing tax is paying into a retirement benefits scheme. This reduces your taxable income by the amount you are deducted.

Be specific when filling schedule A of the tax form 1040, more detail here will allow you increase the deductions on gross income thus reducing the taxable income. It therefore calls for you to be careful in filling this section to ensure that anything you include goes towards reducing the taxable income.

Remember to make use of tax credits as this will immensely reduce your taxable income. The common tax credits are earned income tax credit, child & dependant care credit and education credits.

On education you can save some amount too if you include the student load deductions. These are also tax exempt and the repayment thus reduces the taxable income. Mortgage payments are another way of eating into that same amount that the IRS wants to prey on. Your interest on mortgage payment is also tax exempt and this will add up t the deductions on your gross pay.

As we all know no one likes to pay tax but because we want a government and services we have no option but to do it. The beauty is the government has laid out ways in which you can reduce the amount paid to it. You can only benefit from this ‘credits’ if you know them well enough and how to apply them. Visit the KRA website for more insights.