Individual Annual Income Tax Return 2017
Individual Annual Income Tax Return 2017

The individual taxpayers who must file the 2017 annual return, are those who earned income for the following concepts, among others: 

  • * Providing professional services (fees)
  • * Renting real estate.
  • * Carrying out business activities (commercial, industrial, agricultural, livestock, fishing and forestry) except those that are taxed in the Fiscal Incorporation Regime.
  • * Disposal of assets
  • * Sale of shares in stock exchange
  • * Acquisition of goods 
  • * For receiving wages in the following cases, when:

­- In addition, they obtained other cumulative income other than salaries.

- Stopped providing services before December 31, 2017, or when they provided services for two or more employers simultaneously.

­- Earned income for salaries from persons not required to make withholdings, (international organizations and foreign States or embassies)

- Earned annual income for salaries that exceeded $400,000.00

­- They notified the employer in writing, no later than December 31, 2017, that they would file an annual return on their own. 

  • * By interests, in the following cases:

- Those whose only income was from real interests for more than $100,000.00

- Those who, in addition to real interests, obtained income from other concepts for which they are required to file annual returns (professional services, real estate leases, among others) regardless of the amount of each one or the sum of these.

­- Those who received real interest and wages, and the sum of both exceeds $400,000.00, regardless of the amount for each of these concepts.

­- Those who received real interest and wages, and the sum of both was up to $400,000.00 but the amount of interest was greater than $100,000.00

Those who received other income, for example: debts which were written off by the creditor or paid to another person, investments abroad, moratory interest, and/or conventional penalties, etcetera. 

Keep in mind that, this year, individual taxpayers will not be required to file the annual return provided that: 

  • * They obtained income exclusively for wages and in general providing a subordinate personal service to a single employer.
  • * If it is the case, having obtained income from nominal interest that has not exceeded $20,000.00 (twenty thousand pesos 00/100 M.N.), from financial system institutions and,
  • * The employer issued the payroll CFDI for all the income mentioned in the first point.

However, these taxpayers may file their Individual Annual Income Tax Return for the year 2017. 

As for the personal deductions that can be considered in the Annual Return you can find the following:

1.- Medical, dental and psychological services and nutrition fees, as well as hospital expenses: the payment of these expenses must be by taxpayer's personal check, electronic funds transfer, credit or debit card. If the payment is made in cash it is not deductible.

  1. 2.- Donations: those that do not exceed 7% of your cumulative income and 4% of your cumulative income if you make donations in favor of States, municipalities or their decentralized agencies. This expense can be done with any means of payment and you must have the tax receipt. 
  1. 3.- Complementary retirement and voluntary contributions, you can deduct up to 10% of your cumulative income, without exceeding five Measure and Upgrade Units (UMA) elevated per year 
  1. 4.- School transportation, as long as it is mandatory or included in the tuition for all students and is shown separately on the corresponding receipt. Payment for these expenses must be made with personal check, electronic funds transfer or credit, debit or service card. 
  1. 5.- Funeral expenses, you can deduct your partner’s funeral expenses, as well as your parents’, grandparents’, offspring and grandchildren, for an amount that does not exceed the Measure and Upgrade Units (UMA) elevated per year. Funeral expenses paid in advance can be deducted in the year in which they are used. 
  1. 6.- Real interest for mortgage loans, the real interest accrued that you have effectively paid during 2017 for a mortgage loan, destined to your house. For mortgage loans contracted with financial system institutions, INFONAVIT or FOVISSTE, among others, as long as the credit granted does not exceed seven hundred and fifty thousand investment units. 
  1. 7.- Insurance premiums for medical expenses, complementary or independent of health services provided by public social security institutions, as long as the beneficiary is you, your spouse or partner, or your ascendants or descendants in a straight line. 
  1. 8.- Deduction of tuition or school fees, in private institutions with official validity of studies, only if it is paid by check, electronic transfers, credit, debit or service cards. 

The maximum amounts to be considered by each student are the following: 

- Kindergarten / Preschool: 14,200 pesos.

- Elementary School: 12,900 pesos.
- Middle School / Junior High: 19,900 pesos.

- Technical School: 17,100 pesos.

- Highschool or its equivalent: 24,500 pesos 

In addition, the income for the following concepts and amounts must also be shown as informative data: 

* Loans, Prizes and donations, provided jointly or severally had exceeded

$600,000 pesos.

* Paid Travel expenses, if the amount you received in 2017 exceeded $ 500,000 pesos and if the sum of the total amount of travel expenses paid represents more than 10% of your wages income. 

* Sale of the house of the taxpayer, inheritance or bequest provided jointly or severally exceeded $500,000 pesos. 

Please feel free to contact us if you have any question or comment in this regard.