Persons required to file tax returns with the Service tax administration (SAT) have the possibility of deducting expenses. In addition to travel, medical expenses, funerals, the tax authorities allow the deduction of expenses related to education.
Tuition payments represent a significant expense for some families, so taxpayers are entitled to diminish these taxable income in the annual statement for the year.
How much can I deduct from tuition?
Therefore, the SAT establishes that tuition in private educational institutions and with official validity of studies, from preschool to high school, are deductible for the following annual limit amounts:
- Preschool: 14 thousand 200 pesos.
- primary: 12 thousand 900 pesos.
- Secondary: 19 thousand 900 pesos.
- technical professional: 17 thousand 100 pesos.
- Baccalaureate or its equivalent: 24 thousand 500 pesos.
How to deduct tuition from the SAT?
To make this benefit effective, the taxpayer must have the corresponding proof of payment issued by the educational institution.
In the event that the taxpayer makes payments in the same fiscal year, for a student who has completed two educational levels —for example, if the student has completed primary and secondary school during the same year— the annual deduction limit that may be decrease is the one that corresponds to the greater amount of the two levels, regardless of whether it is the one that concluded or began.
It is worth mentioning that the fees for registration, re-registration or the purchase of school supplies they cannot be deductible, since it only applies to tuition.
Also it is possible to deduct school transportForever and wherever “required” by educational institutions, as mentioned by the SAT itself.
In addition, the tax deduction for education does not apply to schools attached to the Ministry of Public Education (SEP).
It is important to point out that the taxpayer must make the payment of tuition with a personal check, electronic transfer or by means of a credit, debit or service card, since it is not possible to take advantage of the deduction for school expenses if this it’s made on cash.