Each year, individuals have the opportunity to optimize their fiscal situation through personal deductions allowed by the Income Tax Law (ISR). These deductions not only help reduce your tax burden but can also result in a tax refund that could be reimbursed by the Tax Administration Service (SAT).

Below, we explain which expenses you can deduct, when to file your annual return, and the benefits of obtaining a tax refund.

What Are Personal Deductions?

Personal deductions are expenses that you can subtract from your taxable income to determine your tax base. This means that by reducing your income subject to ISR, you may pay less tax.

Deductible Expenses for 2024

For the 2024 tax year, the main deductible personal expenses include:

1. Medical and dental expenses: Fees paid to doctors, dentists, psychologists, and nutritionists, provided the payment is made by nominative check, bank transfer, credit card, or debit card.
2. Hospital expenses: Includes costs for hospital services and medications (the latter only if purchased within the hospital).
3. Funeral expenses: Covers expenses incurred for funeral services, subject to SAT-established limits.
4. Real interest on mortgage loans: Interest paid on mortgage loans contracted with financial institutions or Infonavit, provided the loan amount does not exceed 750,000 investment units (UDIs).
5. Supplementary retirement contributions: Contributions made to personal retirement plans or voluntary contribution accounts in Afores.
6. Premiums for medical expense insurance: Payment for complementary or independent medical expense insurance.
7. Donations: Made to authorized institutions by the SAT, with a limit of 7% of taxable income for the year.
8. Tuition: Payments for educational services at basic and upper secondary levels, with maximum deductible amounts depending on the educational level.
9. Mandatory school transportation: If it is an indispensable condition established by the educational institution.
10. Local taxes: Paid on income from wages, with a maximum of 5% of such income.

Deadline to File Your 2024 Annual Return

The deadline to file the 2024 annual return for individuals is April 30, 2025. It is essential to prepare it in advance to avoid setbacks, especially if you plan to request a refund.

Benefits of Obtaining a Tax Refund

Determining a tax refund can be highly beneficial. The advantages include:

1. Tax reimbursement: If you have overpaid taxes throughout the year, the SAT may refund that excess. This balance can be used to save, invest, or cover other expenses.
2. Better financial organization: By filing your return, you gain a clear view of your income and expenses, enabling more informed financial decisions.
3. Tax compliance: Requesting a refund ensures you comply with your tax obligations appropriately.

Tips to Maximize Your Deductions

1. Keep your receipts: It is crucial to save invoices and receipts for all expenses you wish to deduct.
2. Check your CFDIs: Ensure all invoices are correctly issued in your name and with your RFC.
3. Use digital tools: Platforms are available to help you record and categorize your deductions easily.
4. Consult a specialist: An accountant can help identify all applicable deductions in your case and avoid common mistakes.

Conclusion

Personal deductions are a key tool for optimizing your annual tax return and potentially receiving a refund. Prepare your information in advance, take advantage of the benefits provided by law, and meet your tax obligations. Remember, the deadline is April 30, 2025. Don't leave it until the last minute!

If you have specific questions about how to apply these deductions, don't hesitate to contact us or consult a tax specialist.

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