Personal Tax Deductions: Who Qualifies and What You Get

This scheme allows individuals to reduce their overall tax burden by claiming specific personal expenses during their annual tax filing process.

👤Who it's for

This scheme is intended for taxpayers who are in the process of filing their annual tax returns. It is specifically relevant for individuals who need to account for their personal spending to manage their tax obligations effectively.

🎁What you get

By utilizing these deductions, you can potentially receive refunds on various costs incurred throughout the year. The specific categories of expenses that qualify for these deductions include medical expenses, dental services, and the interest paid on a mortgage. Utilizing these deductions helps ensure you are not paying more tax than is legally required based on your actual spending.

💰What it costs you

While the scheme itself does not have a fee to participate, it requires significant administrative diligence. To successfully claim these benefits, you must obtain a digital invoice, known locally as a CFDI or Factura, for every single expense you intend to include. Without these specific digital documents, you cannot prove the expense to the tax authorities.

⚠️The catch to know

The most important rule to remember is that cash payments are not deductible. Even if you have a digital invoice, the deduction will be rejected if the transaction was made in cash. To ensure your expenses are valid for tax purposes, you must pay for all qualifying services and goods using a card or a bank transfer.

📝How to apply

1. Request a digital invoice (known as a CFDI or Factura) for every qualifying medical, dental, or mortgage interest expense.
2. Ensure all these payments are made through electronic means, such as a bank transfer or a card, rather than cash.
3. Organize your digital invoices to ensure they are ready when you file your annual return.
4. Access the official portal to complete your filing: https://www.sat.gob.mx