Annual declaration: what are tax-deductible personal expenses?

MEXICO CITY (apro).- Individuals have the right to present personal deductions, expenses that may decrease the cumulative income in the annual tax return.

According to the Tax Administration Service (SAT), there are several personal deductions, which are the following:

Health:

• Medical, dental and professional services fees in psychology and nutrition.
• They are deductible if they are provided by people with a professional title legally issued and registered by the competent educational authorities.
• Hospital expenses and medicines included in hospital bills.
• Pharmacy receipts are not applicable.
• Fees to nurses.
• Analysis, clinical studies.
• Purchase or rental of devices for the recovery or rehabilitation of the patient.
• Prosthesis.
• Purchase of graduated optical lenses to correct visual effects.
• Premiums for medical expenses insurance, complementary or independent of health services provided by public social security institutions.
• These health expenses will be deductible when they have been incurred by the taxpayer, his or her spouse or partner, his or her parents, grandparents, children and grandchildren.

Education:

• Tuitions in private educational institutions with official validity of studies. From preschool level to high school or equivalent, for the following amounts (annual deduction limit):
• Preschool: 14,200 pesos.
• Primary: 12,900 pesos.
• Secondary: 19,900 pesos.
• Technical professional: 17 thousand 100 pesos.
• Baccalaureate or its equivalent: 24,500 pesos.
• School transportation, only if it is mandatory

To make this benefit effective, you must have the corresponding proof of payment. Fees for registration or re-registration cannot be deductible.

Others:

• Funeral expenses for the spouse or cohabitant, as well as for parents, grandparents, children and grandchildren of the taxpayers, which may be made with any means of payment and must have the invoice.
• Real interest accrued and effectively paid on mortgage loans, intended for the taxpayer’s residence, contracted with the financial system, INFONAVIT or FOVISSSTE, among others, and provided that the credit granted does not exceed seven hundred and fifty thousand investment units.
• Donations given to institutions authorized to receive donations.
• Complementary retirement contributions made in the voluntary contributions subaccount of personal retirement plans (Afore).
• Payment of local taxes on salaries, the rate of which does not exceed 5%.

For these deductions to be valid before the SAT, it is crucial to keep all the corresponding invoices as backup.

To learn more about personal deductions, the types of payment valid for these and more reports, the SAT makes the following link available to taxpayers: