Requirements to deduct tuition

Requirements for tuition deduction


Back-to-School brings a reminder for parents: deduct tuition.

The requirement to deduct on your 2015 annual statement in April next year, is that you must pay by electronic means, not cash.

According to Claudia Covarrubias, the Tax Administration Service (SAT), this expense will be deductible only if it was covered with credit cards, debit or service, named checks or electronic fund transfers.

While educational institutions can issue electronic invoices that were paid in cash, this won’t be deductible next year when you present your 2015 annual statement, said Juan Manuel Franco, of the Tax Commission of the Mexican Institute of Public Accountants (IMCP).

"Higher amounts to 2000 pesos necessarily must be paid by credit card, check or electronic transfer. It is one of the stringent requirements as appropriate deductions. The details of the payment is part of bill and will be compare by authority. It does this with the aim of ensuring that there are no discrepancies, taxpayers spend more than they declare", said Franco.

All individuals who pay private school tuition can deduce this concept in the annual declaration of income tax (ISR), including employees.

Source: http://www.elfinanciero.com.mx/mis-finanzas/paga-el-colegio-con-medios-electronicos-para-deducir.html

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