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

Below, we explain what expenses you can deduct, when to file your annual return, and the benefits of obtaining a balance in your favor.

What are personal deductions?

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

Deductible expenses for 2024

For the annual return for the 2024 tax year, the main personal deductions include:

1. Medical and dental expenses: Fees paid to doctors, dentists, psychologists and nutritionists, provided that payment is made by personal check, bank transfer, credit or debit card.
2. Hospital expenses: Includes expenses for hospital services and medications (the latter only if purchased within the hospital).
3. Funeral expenses: They cover expenses incurred for funeral services, with limits established by the SAT.
4. Real interest rates on mortgage loans: Interest paid on mortgage loans contracted with financial institutions or Infonavit, provided that the loan amount does not exceed 750,000 investment units (UDIs).
5. Additional retirement contributions: Contributions made to personal retirement plans or voluntary contribution subaccounts in Afores.
6. Premiums for health insurance: Payment of complementary or independent medical expense insurance.
7. Donations: Made to institutions authorized by the SAT. There is a limit of 7% of the accumulated income for the year.
8. Tuition fees: 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 essential condition established by the educational institution.
10. Local taxes: Paid on salary income, with a maximum of 5% of the same.

Deadline to file your 2024 annual return

The deadline for filing the 2024 annual declaration for individuals is April 30, 2025It is important to prepare it in advance to avoid setbacks, especially if you plan to request a credit balance.

Benefits of obtaining a balance in your favor

Determining a credit balance can be extremely beneficial. The advantages include:

1. Tax Refund: If you have paid more taxes than necessary throughout the year, the SAT may return the excess to you. This balance can be used to save, invest or cover other expenses.
2. Best financial organization: Filing your tax return gives you a clear view of your income and expenses, allowing you to make more informed financial decisions.
3. Tax compliance: Requesting a refund of your credit balance is a way to ensure that you are properly complying with your tax obligations.

Tips to make the most of your deductions

1. Keep your receipts: It is essential to keep invoices and receipts for all expenses you want to deduct.
2. Check your CFDI: Make sure that all receipts are correctly issued in your name and with your RFC.
3. Use digital tools: There are platforms that help you record and categorize your deductions in a simple way.
4. Consult a specialist: An accountant can help you identify all the deductions that apply to you and avoid common mistakes.

Conclusion

Personal deductions are a key tool to optimize your annual declaration and, potentially, receive a balance in your favor. Prepare your information in time, use the benefits that the law offers you and comply with your tax obligations. Remember, the deadline is April 30, 2025Don't leave it to the last minute!

If you have specific questions about how to apply these deductions, please do not hesitate to contact us or consult a tax specialist.

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