--- title: 'Annual Tax Return 2026: Complete Step-by-Step Guide' source: 'https://youtube.com/watch?v=ldvKl7uzmv8' video_id: 'ldvKl7uzmv8' date: 2026-08-04 duration_sec: 1325 --- # Annual Tax Return 2026: Complete Step-by-Step Guide > Source: [Annual Tax Return 2026: Complete Step-by-Step Guide](https://youtube.com/watch?v=ldvKl7uzmv8) ## Summary This video provides a step-by-step guide to filing an annual tax return in Mexico, using the SAT's online platform. It covers who is required to file, how to navigate the system, review pre-loaded information, claim deductions, and request a refund if applicable. ### Key Points - **Who Must File** [00:43] — Not everyone is required to file. You must file if you earned over 400,000 pesos annually, had two or more employers simultaneously, submitted a letter to your company about deductions, received pension or compensation income, stopped working before December 31, or had non-salary income like rental income. - **Accessing the SAT Portal** [01:54] — Go to sats.gov.mx, click 'visit the minisite' and then 'declare here'. Log in with your RFC, password, and captcha. You can also use e-signature, but password is recommended. - **Reviewing Pre-loaded Information** [03:31] — The system pre-loads your tax information. You must review each section (income, deductions, tax determination, payment) and accept or correct the data. Items in red require attention. - **Verifying Income Details** [04:01] — Check the income details by clicking the eye icon. Verify the RFC of the withholding agent, annual income, exempt income, and withholdings. For interest income, ensure the nominal and exempt amounts match your bank certificate. - **Understanding Deductions** [09:11] — You can deduct medical expenses, major medical insurance premiums, mortgage interest, funeral expenses, tuition (with limits), donations, and retirement contributions. There is a cap: the lesser of 15% of annual income or 5 times the annualized UMA (approx. 206,000 pesos). - **Determining Tax Due or Refund** [15:33] — The system calculates your taxable income, applies deductions, and compares the tax you paid to what you owe. If you paid more, you get a refund (saldo a favor). In the example, the taxpayer got a refund of 57,176 pesos. - **Choosing Refund or Compensation** [17:49] — You can choose to have the credit balance refunded to your bank account (within 40 days) or use it to offset future taxes. Refund is usually better. - **Signature Requirement** [20:12] — If your refund is over 10,000 pesos, you must use your e-signature (digital signature). If under 1,000, you can use your password. Always save and review your declaration before sending. ### Conclusion Filing your annual tax return in Mexico is straightforward if you review pre-loaded data, claim eligible deductions, and save your progress. Always keep receipts for deductible expenses and pay by bank transfer or card to ensure they count. ## Transcript but what if I told you there's a way to make the government pay you money instead of you paying it? This is totally possible and it's achieved by filing a good annual tax return. That's why today I'm going to teach you step by step how to file your tax return. We'll start from scratch on the platform, and I'll show you which buttons to press and, above all, what to do to get your money back from the government . So without further ado, I'll leave you with my accountant Marta, who does all these processes for me. Learn from her and follow her example. Let's go. It 's already April, and April is the month in which individuals must file their annual tax return. In this video I will give you a short guide on what we need to consider in order to present it correctly. First of all, we must know that not everyone is required to file a tax return. Who is required to file their annual tax return ? Those who have received an annual income greater than 400,000, people who have had two or more employers simultaneously, people who have submitted their letter to the company informing that they will submit their declaration because they have deductions that can help them lower their taxable base. People who received additional income from pensions or compensation, people who stopped working before December 31, and people who obtained income other than wages and salaries, for example, those who rent a house and receive rental income. Okay? So, if we fall into one of these categories, we are required to file our declaration. And as I mentioned earlier, I'm going to explain here how we should do it. First of all, we must enter this in any browser to be able to access the browser to be able to access the official SAT website which is sats.gov.mx. We go to where it says visit the minisite and then it says declare here. There We can log in with the e-signature or with the password. I recommend that we log in with the password. So, let's put a password here. We're going to enter the taxpayer's RFC, the password, and the captcha, and then we'll click send. We are about to begin the annual tax return filing process. Okay, if we look at the right side, the taxpayer's name appears, which I just typed. It's a way to confirm that we're with the right person. Okay, let's go here where it says to file a declaration. Okay, the information has loaded. Let's say it's the 2025 tax year. The type of declaration is normal and the period is the tax year. At the bottom, it asks us to answer two questions in order to continue. You earned income and paid taxes abroad, or you have tax pending credit. We tell him no. And you are required to submit information about your tax situation. We'll say no. Okay. And we press next. It says that the tax administration system has the information pre-loaded from my annual tax return. I click accept. It is divided into four sections: the income section, the personal deductions section, the section on determining the tax in favor or against, and the payment. Okay, everything that appears in red here are things that I have to review and accept or correct, as the case may be. Let's start with the first part, which is salaries, wages and similar payments. Here it simply tells me to verify each piece of information presented to me by clicking on the view icon. We'll check it right now. I click accept. Okay. So, this first part is giving me the annual income that this taxpayer had, which was 1,23113. was 1,23113. At the bottom is the RFC of the withholding agent, the name of the company where he works, the annual income that I just mentioned, the exempt income, the withholdings that the company withheld from this taxpayer. And here comes the part where we have to review. In the section where the little eye icon is, I'm going to click on it and the more detailed information will appear, including the RFC the more detailed information will appear, including the RFC of the withholding agent, the name of the withholding agent, and a breakdown of what he obtained, his annual income, and his exempt income. This exempt income is 101,422. Below is a breakdown Below is a breakdown of those exempt incomes. The sum of the Christmas bonus, vacation bonus, profit sharing, Sunday bonus and other Sunday bonus and other exempt income corresponds to these 1014,422. Okay. After verifying that this information is correct, I will give it to you here. Accept and acknowledge the pre-loaded information. I'm going to say yes. After I say yes, I have to click save at the bottom. It is very important to save the information after we review it. Okay. So I've already corrected the part about salaries and wages. The interest income portion is what I need to correct now. It also tells me that I have to look at the eye icon, which means "see" in order to correct the information and click " accept" if I recognize or accept that the information is correct. Here in this section, I see two interest income entries that this taxpayer received. Here I see the RFC of the banking institution, the amount of shown, we are talking about one peso, the loss, the ISR, I have to click on information, as I have mentioned to you. In this case, it tells me that the RFC verifier that the bank institution is using seems to be wrong; it says zero and it should say five. So I click accept because we know that the SAT (Mexican Tax Administration Service) has all the correct information. We click accept and it says, "Do you accept if you recognize the "Do you accept if you recognize the preloaded information?" I click yes and that's it. Okay. Remember to save. If we do n't save, we don't move forward. When I saved it, the red dot disappeared, which means that I authorized it and that it's saved. The next part is either another interest that exists for another banking institution. Here, an interest amount of 7,487 was obtained. The actual interest amount is 4700. And I have to click here on the eye icon to check because it's telling me something is wrong. It must be taken into account that the interest generated for us has an exempt portion for which no taxes are paid. So, in this case I have to check my statement of earnings and interest withholdings that my bank sends me. I already checked it and indeed the amount of nominal interest is 7,487. Here, I have to capture these two items according to what is stated on my certificate. It tells me the amount of nominal interest recorded, I'm going to put zero here. Okay? Because? Because that's what's stated in my certificate. The amount of exempt nominal interest is 7,487. are exempt, which is why I had to correct this information here according to what correct this information here according to what says here, "Do you accept if you recognize the pre-loaded information?" I agree. Remember to save. We click save and my other part is already corrected. Okay. Okay. Here at the bottom, we also have to answer these questions that ask us, "Did you receive income from the non-financial system?" I'm going to say no. "You received income from partial withdrawals from the separation insurance." I'm going to say no. Okay. And that's it. At the bottom there is a section that we also have to fill out, which corresponds to the loss of previous exercises. We're just going to put zero here. We click save. Remember, after saving it, this part is already reviewed and authorized. Okay, if we notice, means that we already reviewed what was pre-loaded and authorized it, okay? We verified that it was correct and authorized it. Okay. So, the revenue part is already taken care of. Let's move on to the deductions section. Here 's a very interesting part. As you can see, we cannot move on to the deductions section without having authorized the entire income section. So, since the income section appears to be correct, it allows us to move on to the the deductions section there are many items that we can deduct as individuals. We can deduct medical and hospital expenses, that is, if we are hospitalized, if any direct relative, father, mother, any direct relative, father, mother, children, spouse are hospitalized, we can also deduct them. We can deduce consultations with general practitioners, with specialists, with psychologists, with nutritionists, with dentists. We can deduct major medical expense insurance premiums . Those with insurance and major medical expenses can also deduct the taxpayer's expenses, those of their spouse, and those of their immediate family members, parents or children. Okay? We can also deduct mortgage loans. Those who have any credit with a banking institution, with Infonavid or with FOBiste. We can also deduce . Okay? We can also deduct funeral expenses for family members, such as spouses, parents, or children, as I just mentioned, okay? Those who have their children in schools can also deduct; there is a set limit: for preschool it is 14,200, for primary school it is 12,900, for secondary school it is 19,900, for technical career it is 17,100, and for high school it is 24,500. Okay? And we can also deduct donations. If we make a donation, we can also deduct it. We can also deduct contributions to retirement accounts. We can deduct PPRs as long as they do not exceed the limit of 152,000 per year. Okay? These are some deductions that we can deduct, and we're taxpayer's declaration. Okay? It's also important to understand that just because we have a lot of expenses doesn't mean we can deduct them all. There is a limit set by the authority. That limit can be 15% of the annual income that the taxpayer has generated in the previous year, or five times the annualized UMA, okay? whatever is smaller. In this case, the annualized amount is approximately 206,000 pesos. Therefore, the amount that is less than 15% of your annual income or 206,000 pesos is what we will be able to authorize. In this case, in this example we are doing, the total deductible amount for this taxpayer is 185,790, which means that 15% of their annual income was applied. Okay? Because? because it is less than the 206,000 that I just mentioned, which is five times the annualized UMA. So, going back to this taxpayer, he had the following deductions, which are the ones that appear here in red. He had deductions for medical, dental, and hospital fees, and he had deductions for major medical expense insurance premiums. And here are some of the other deductions we can include, such as funeral expenses, as I mentioned earlier, donations, interest, contributions to personal retirement plans , deposits in SAR accounts, tuition fees, and these are some examples. Okay? So let's examples. Okay? So let's review how that 185,790 deductible amount that this taxpayer has is made up. Let's put it here and at the bottom we'll see all the concepts for this person. These are medical consultations, studies, laboratory studies, laboratory studies, and medical fees. There are even more here, which are still medical fees, consultations, laboratory tests, hospital studies, and well, all of these are all the expenses that all the expenses that he can deduct. This total of expenses that I just mentioned gives us a total of 58,489, which means that in the category of medical fees this taxpayer is deducting 58,489. The other item he is deducting is the portion of medical expense insurance premiums . As I mentioned earlier, here we can deduct our own medical expense insurance, that of our spouse, our children, and our parents. In this case, he billed 285,354 for medical expense insurance. However, the only amount you can deduct is However, the only amount you can deduct is 127,301, because that 127,301 plus what we discussed here in the other part regarding medical fees, which is 58,489, gives us the maximum amount we can include as personal deductions, which is 185,790. Okay, we're in this section about insurance premiums and medical expenses, and I have to pre-loaded information. I have to say yes and if you look, it removes the part that was here in red. So in this part here where we talk about the medical fees that we just saw, I have to tell you that I recognize the pre-loaded information and I accept it. I give it a yes and if they come again they remove the part in red, which means that it is already authorized by the taxpayer. Okay. So here, to summarize, it gives us a total deductible amount of 185,790, which is what we discussed earlier, which is 15% of the taxpayer's annual income . Okay? And well, we've finished the income and deductions sections because it no longer shows anything as pending. Now comes part three. I'm saving the information here. Okay, let's continue with the most interesting part, which is determining the tax due or the tax refund, because remember that the fact that we file a return does not mean that we will get a balance in our favor, it depends on the deductions that we have. That's why it's very important to try to get the corresponding receipts for all the expenses we mentioned earlier that are included for authorized deductions, so that correctly registered with the SAT (Mexican Tax Administration Service). And something very important that I hadn't mentioned before, all these expenses have to be paid by transfer, by check, by debit card or by credit card. If we pay in cash, these expenses will not be deductible. The authority indicates that all expenses that we want to deduct must be paid in the way I just explained to you. Okay, so let's move on to the determination of the ISR (Income Tax). As I mentioned, the most interesting part here gives us a summary of what we just discussed. It is telling us that this taxpayer's taxable income is 1,134,340. If we click here in the details section, we can see how it is structured. It consists of salaries of 1129 and interest of 4658. That is for informational purposes. Okay. Personal deductions, as we just saw , are 185,790. If we look at the details, we see that it is made up of medical fees of 58,489 and medical expense insurance premiums of 127,301. Again, this data is for informational purposes and is a summary of what we already saw in the previous sections. Therefore, my taxable income minus my personal deductions gives me a personal deductions gives me a taxable base of 948559. The income tax that must be paid on that amount is 218,172. The ISR that this taxpayer paid through the company was 275,348, which means that there is a tax which means that there is a tax in favor of the taxpayer of 57,176. Okay, that's great, because in this case a tax came out in favor of the taxpayer. Okay, now the next step is to request a refund of that tax credit. Here it asks us, what do you want to do with this credit balance ? It gives me three options, compensation, which means following exercises. If at any point I have a tax to pay, they will deduct what I have in my favor and I would only pay the difference. or a refund. "Refund" means that you will receive it back within a maximum period of 40 days, according to the authority's guidelines. Well, obviously I think it's in our best interest to request a refund. We're going to give you a pre-loaded information about the bank name and the interbank key number Since this isn't the first time it's happened, the authorities have this information saved and are asking me if I want to use it, and I'm saying yes, right? Then, when I told him right? Then, when I told him yes, the bank information and the interbank code that I had already captured for that taxpayer appeared. Here it tells me to accept that the interbank key information is correct, so I click continue. Obviously I accept it, the bank and the interbank code are sent to me. Okay. Down here there are so fill out in order to complete our declaration. Okay. But then he asks me, "Do you report other exempt income such as loans, donations, or prizes?" And so I tell him no. He says, "Do you have any other information to declare? Well, no." Do you have reportable tax schemes that you need to report? Well no. Okay. I click save. Remember that we all have to save in order to move forward. Before continuing, I always recommend reviewing the statement. At the bottom you'll find options to save, view profile, review, and send. Before sending, I recommend checking. My tax return form will appear with all the data we just reviewed. It is therefore advisable to print it. It is very important that the taxpayer reviews this information and approves it . Well, this sends me to the declaration review. Here it is. Yes, that's the one I recommend we print. and that the taxpayer reviews it. Okay? Once we've reviewed it, we'll reviewed it, we'll send you the declaration. Here's another very important point. This year the authority established that if we have a credit balance greater than 10,000 pesos, we have to use the e-signature, the digital signature. If the balance in your favor is less than 1,000, we can continue the refund process with the password. Okay? So, in this case, since I have to include the signature, I'm not going to send it right now. After submitting the declaration, it will show us the acknowledgment of receipt, which is very important to print for any clarification. I'm going back. He asks me, "Do you wish to continue?" Well, I'm going to tell him no because I don't have my signature on hand . Okay? And well, that concludes the presentation of the annual tax return. It's a simple process; you just have to review, as I mentioned earlier, everything that appears in red, authorize the pre-loaded information after you 've reviewed it, always save it so that the information isn't lost, review the declaration at the end, and then send it. Okay. That 's all. We hope that's clear. If you have any questions, you can write them here and we will gladly answer them. We are at your service and And that's it, you now have all the information you need to file your own tax return. If you have any questions, please leave them in the comments and the team will help answer them as soon as possible. I sincerely hope this video helps you and saves you a lot of money. As always, it's a pleasure to serve you, and we'll see you soon in another video. Ciao.