Maximize your school deductions on the 2024 tax return in Mexico.

The tax declaration period in Mexico is a crucial time for individuals, especially when it comes to maximizing the deductions allowed by the Tax Administration Service (SAT). With the start of 2024 just around the corner, it is essential for taxpayers to understand how to ensure that the SAT does not reject their school-related deductions, specifically for tuition fees and mandatory school transportation—two of the main expenses that can reduce the tax burden. Tuition fees are a key aspect of tax deductions and cover levels from preschool to high school. However, not all tuition fees are the same; there is a cap that is applied annually to each educational level, according to the decree published in the Official Journal of the Federation in 2011. For example, taxpayers can deduct up to 14,200 pesos for preschool tuition, 12,900 pesos for primary school, and 24,500 pesos for high school. It is essential for parents to be aware of these limits to maximize their tax benefits. One common mistake when trying to deduct school expenses is confusing enrollment fees, materials, or uniforms with tuition fees. According to Virginia Ríos Hernández, a member of the technical committee for tax research at the College of Public Accountants of Mexico, it is crucial for schools to issue separate invoices for tuition fees. Only these expenses are deductible, and the use of correct receipts is necessary to avoid issues with the SAT. Additionally, taxpayers have the option to deduct the tuition fees of their spouses, parents, or children, provided certain conditions are met. However, if any of the beneficiaries receive scholarships or public financial support for education, the amount of such aid cannot be deducted. This rule aims to prevent double deductions and maintain fairness in the tax system. One lesser-known aspect is that for these deductions to be accepted, they must be made through payment methods that leave a clear trail, such as checks or electronic transfers. Cash payments are a common reason for rejection by the SAT. Therefore, it is advisable for parents to maintain strict control over how and when they make these payments. The school year also influences the declaration. When a student advances to a new educational level, parents can choose to deduct the cost of the tuition from the previous level, regardless of how many months it was attended. This means that if a child moves from preschool to primary school, one can opt to deduct the corresponding amount for preschool tuition, providing an additional fiscal relief. On the other hand, school transportation can also be deducted, but only if it is a mandatory service provided by the institution. Just like with tuition fees, it is important to make the payment formally and document it, and the school's regulations can serve as proof in case the SAT requires clarifications. It is relevant to mention that, although school transportation is deductible, it is subject to a limit that is part of the total personal deductions, which cannot exceed the equivalent of five Units of Measurement and Update (UMA) annually. For 2024, this limit translates to approximately 198,032 pesos, or 15% of the taxpayer's total income, whichever is lower. Moreover, it is important to emphasize that tuition fees are not part of this limit, meaning that if taxpayers have made significant payments for this concept, they can benefit from additional deductions without worrying about reaching the cap established by law. Finally, with all these details in mind, taxpayers must ensure they have all the necessary documentation and follow the guidelines established by the SAT so that their school-related deductions are accepted without issues. Planning and organization are key to avoiding unpleasant surprises in the tax declaration, thus allowing taxpayers to enjoy the tax benefits that the law offers.