What are personal deductions and what are they for?

Las deductions personal are a very important part of your Annual statementwhich this year allows you recover up to 189 thousand pesos taxes that he charged you SAT During the past year.

He Service tax administration (SAT) reported that the deductions are those bills that the taxpayers They have the right to reduce their incomewhich can be translated into return taxes, if you obtain a favorable balance in your annual return.

The Income Tax Law (LISR) establishes that natural persons –salaried, professionals independent, owners of small businessowners of premises for rent y freelancers– nine personal deductions are available to you.

The SAT explained that the LISR establishes that said taxpayers can recover a maximum amount of five A (Unit of Measurement and Update) annually, effective in 2023, equivalent to 189 thousand 220 pesos, for the concept of the personal deductions.

Or, up to a limit of 15% of the income totals reported by the taxpayer in their annual return, including those that are exempt; “Under the criterion that the SAT will pay “whichever is lower” between said measurements.

What personal deductions can I request?

The Tax Administration Service explained the Article 113-Ffirst paragraph, of the ISR Law determines nine valid personal deductions, which must be credited with the corresponding invoices when submitting the annual return:

1. Medical Expenses

This deduction is available to the taxpayer and, where applicable, his spouse, concubine the concubine, relatives ascendants or descendants in a straight line, provided that said people do not receive income that exceed the value of one annual UMA, in force during the fiscal exercise of 2023, equivalent to 37 thousand 844.40 pesos.

This concept includes medical expenses for:

• Fee doctors.
• Dentisttreatments and consultations.
• Services of psychology and nutrition.
• Medical expenses for inability o disability.
• Bills hospitable.
• Medicines included in invoices for hospitalization, which are included in hospital receipts; no proof of pharmacy.
• Clinical analysislaboratory studies or prosthetics.
• Purchase or rental of devices for restoration or rehabilitation.
• Fees to nurses.
• Glasses graduated opticians, up to an amount of two thousand 500 pesos, for each of the people for whom lenses are purchased.

Invoices must be issued by doctors or specialists with title professional issued and registered by the authorities educational institutions of the country.

The SAT clarified that payments are not recognized in cash and only the invoices which were covered through nominal check to the taxpayer’s name; transfers electronic and payments with cards of debit, credit or services, recognized by the Bank of Mexico (Banxico).

2. Funeral expenses

The authority indicated that in this section the following are recognized as personal deductions:

• Payments made for you, your spouse or common-law partner, as well as for parents, grandparents, children y grandchildren.
• This, provided that said people do not receive income that exceeds the value of the Unit of Measurement and Update (ONE) annually, equivalent to 35 thousand 101.08 pesos

3. Donations

• Non-onerous or remunerative that are granted to institutions authorized for that purpose and to the Federation.
• The limit to deduct donations is considering from the income cumulative from the immediately preceding fiscal year, up to 7% for those granted to donors authorized and up to 4% for those granted to the Federation

4. Tuition fees

The SAT indicated that, by concept of tuitionthe taxpayer may only deduct the following maximum annual 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

5. Complementary contributions

The authority The prosecutor indicated that in this item the complementary contributions of withdrawal y voluntary contributions made directly to you subaccountas long as they meet the permanence requirements.

The amount of contributions that you can deduct in your return is the lesser of 10% of your income cumulative annual of the year or cinco Annual UMAS, equivalent to 189 thousand 220 pesos.

Are deductible contributions that will be intended exclusively to be used when the owner arrives at the age 65 years or in cases of invalidity o inability to make a job paid staff, in accordance with the laws of security social.

6. Medical insurance premiums

In this sense, the paid of premiums for insurance of medical expenses complementary or independent of the services of health public.

You can deduct payments made for you and, if applicable, your spouseconcubine, ascendants or descendants in a straight line.

The total amount of these personal deductions – except medical expenses due to incapacity and disability, voluntary contributions and complementary retirement contributions, deposits in special savings accounts and tuition fees – cannot exceed five times the annual UMA, equivalent to 189,220 or 15% of your total income, whichever is less.

7. School transport expenses

Applies for payment of transport school when this is mandatory, in the terms of the legal provisions of the area where the school is located or when for all students said expense is included tuition.

You can deduct payments made to your descendants in a straight line and you must make sure that on your receipt or billhe amount that corresponds to the concept of school transportation and is separated from the other bills schoolchildren.

The recognized payment methods are: Cheque nominative, transfer electronic and card debit, credit and services

The total amount of personal deductions – except medical expenses due to incapacity and disability, voluntary contributions and complementary retirement contributions, deposits in special savings accounts and tuition fees – cannot exceed five annual UMAS or 15% of your total income. , whichever is less.

8. Mortgage loan expenses

The SAT indicated that, in this section, the interests actual accrued and actually paid by mortgage creditsdestined for residential homes contracted with the financial system, Infonavit o Fovisssteamong other.

He credit granted must not exceed 5 million 976 thousand 523.5 pesos, equivalent to 750 thousand UDISamount that must be updated as of December 31, 2023.

In case of escrowmortgage loans are considered those intended for the acquisition, construction, remodeling of casa housing or paid for Passives that are intended exclusively for these purposes.

9. Special and personal savings accounts

In this case, the SAT pointed out that you can deduct the deposits in personal and special accounts for the saving or payments from cousins insurancewhich are based on a personal plan related to age, retirement o withdrawal.

The above, as long as you meet the permanence requirements and do them before submitting the Annual statement. The amount of these payments or deposits must not exceed 152 thousand pesos in the year.