Annual declaration: SAT remembers to take advantage of personal deductions

With the deadline until April 30, 2024 to submit the annual declarations of individuals, the Tax Administration Service (SAT) emphasizes the importance of being well prepared to maximize personal deductions and reduce the tax burden.

The SAT highlights that know and correctly apply allowed deductions It is crucial to take advantage of the benefits of the Mexican tax system.

Here we detail what deductions you can apply and how to do it correctly to optimize your tax return:

– Medical and hospital expenses: You can deduct medical, dental and hospital expenses that you have paid for yourself or your direct dependents. It is essential that these expenses do not exceed income exempt from the minimum wage and that payments are made through electronic or banking methods.

– Funeral expenses: Funeral expenses are deductible up to the limit of the annualized minimum salary. It is crucial to maintain all related receipts to validate the deduction.

– Donations: You can deduct non-remunerative donations made to authorized institutions, as long as they do not exceed the limit established based on your total income.

– Interest on mortgage loans: The actual interest you pay on mortgage loans for your main home can significantly reduce your tax base.

– Voluntary contributions to the SAR: The voluntary contributions you make to your Retirement Savings System are deductible. Although there are limits, this is a great way to plan for your financial future while reducing your tax burden.

– Premiums for medical expenses insurance: The premiums you pay for complementary medical expenses insurance are deductible, as long as they are not part of the exempt benefits offered by the employer.

– Mandatory school transportation: If your children's school regulations establish school transportation as mandatory, you can include this expense in your deductions.

– Tuitions: You can deduct tuition paid from preschool to high school, respecting the limits established by law.

It is vital to have all the necessary digital tax receipts (CFDI) and remember that the total deductions cannot exceed the lesser of five times the annual minimum wage or 15% of total income.

To ensure correct application of deductions, the SAT recommends consulting with a professional tax advisor.

When preparing to file an annual return, taxpayers should consider these options to optimize their tax situation and potentially achieve significant tax savings.