Who must file an annual tax return in 2021?
The seasonal tax return is just around the corner. We know that it is a process that can generate nervousness and doubts and one of the best ways to prepare for this process is to know the rules. At La Haus we share them with you.
The first task is to identify whether or not you should file your annual return. During the month of April of each year, these are the people who must file their return:
- If you are a landlord, you must include both the income and the expenses derived from the lease. Take into account that you must file a provisional income tax return, in addition to the annual one, and pay the tax on a monthly or quarterly basis, if the monthly income does not exceed $ 26,411 pesos. In the leasing regime, you can choose to determine the Income Tax (ISR) deducting expenses as in any other regime or choose the Blind Deduction. This deduction estimates the expenses that may have been incurred, discounting 35% of the income as if they were incurred expenses, in addition to the corresponding property tax. If you decide to apply the blind deduction, you will not need tax receipts and you will not have to keep accounting. As a landlord, you must also pay VAT on a monthly basis in the event that you rent commercial premises or a furnished house.
- If you obtained income greater than 400,000 pesos in the year. In this case, in addition to the taxes withheld every fortnight, you must file your return.
- If you worked for two or more employers in the same year, even if you have not exceeded the 400,000 pesos that we mentioned in the previous point.
- If you have asked your employer in writing not to present your Annual Declaration. Many people make the decision to file the return on their own in order to deduct expenses, for example, interest on a mortgage, tuition, medical expenses, among others.
- If you stopped providing your services before December 31 of the year.
- If you provided services for wages to people who do not carry out withholding, such as embassies or international organizations.
- If in addition to your salary, you obtained other income such as fees, leasing, and business activities, among others.
- If you received income from retirement, pension, liquidation or some type of worker’s compensation.
How do you know if you are exempt from filing an annual return?
If you meet any of these two characteristics:
- You obtained income exclusively from wages from a single employer, provided that they have issued you a payroll CFDI for all income, even if said income exceeded $ 400,000.00 pesos.
- You had income from wages and you also earned nominal interest that did not exceed $ 20,000.00.
Why should you file the tax return?
Annually you must submit to the Ministry of Finance a count of your income and expenses from the previous year, which is known as a tax situation. The return determines if you owe taxes in addition to what you have already paid or if you are owed a refund of the taxes withheld.
Something important that you should know is that as a natural person you have the right to deduct some personal expenses. A deductible expense is one that can be subtracted from your income to pay fewer taxes and in order to make it effective, you must request an invoice at the time of purchase of the product or service.
Here are some deductible personal expenses:
- Interest on mortgage loans. Take into account that in order for you to deduct the interest on your mortgage, the amount of your credit must not exceed 750,000 investment units. If your mortgage was greater than this amount, you will deduct the interest paid up to that amount.
- Fees for medical, dental, nursing, professional psychology and nutrition services. They are deductible if they are provided by people with a professional title legally issued and registered by competent educational authorities.
- Hospital expenses and medicines are included in hospital bills.
- Analysis, clinical studies.
- Graduated optical lenses to correct visual effects.
- Medical expenses insurance.
- Tuition fees in private educational institutions with official validity of studies. Consult the SAT for the annual deduction limit in this area.
- Complementary retirement contributions are made in the voluntary contributions subaccount of your personal retirement plans (Afore).
Step by step to filing your return online
1. Enter the SAT portal
2. Login with your username and password or e.firma
3. In the top menu you find the option Declarations
4. Fill in the requested information
5. Sign your statement with your e. Signature and send it
6. Verify that the SAT sends you an acknowledgement of receipt
Not making your declaration or making it with errors can generate penalties or fines. At La Haus we recommend that you have everything ready before the end of April.