With the April 15th filing date looming, you could be scrambling to find any possible tax deductions to keep your hard-earned dollars in your pocket. What if you could get a tax break for owning a pet? After all, our fur babies are expensive! Although it sounds dubious, you might actually be eligible for a pet tax deduction. Don’t get too excited just yet — as you might imagine, there are a lot of limitations. But perhaps you can qualify.
Can You Claim Your Pet As A Dependent?
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We pet parents consider our fur babies to be part of our family. In fact, in a 2023 survey by the Pew Research Center, nearly all owners (97%) said they considered their pets as family members. Over half of owners (51%) said their pets are as much a part of their family as a human member.
Sadly, but not surprisingly, the Internal Revenue Service (IRS) does not view pets the same way. While you can’t claim your pets as dependents like you do with your human children, you may be eligible for another type of pet tax deduction.
What Pet Tax Write-Offs Are Available?
You can include your pet as a tax deduction, but this typically applies only to certain cases, mainly involving service animals and business-related income. There are various tax deductions available for pets that you might be eligible for, enabling you to deduct expenses related to your pet, such as:
- Food and necessary supplies
- Veterinary bills and other pet medical expenses
- Pet insurance
- Grooming services
- Boarding fees
- Service animal training costs
- Transportation expenses
I strongly recommend you talk to a tax expert who can help you figure out if you qualify for pet-related deductions before you make any claims.
How Can You Claim Your Dog On Your Taxes?
A legitimate IRS pet deduction only applies to certain owners under specific circumstances. So, who can qualify for a dog tax write-off? Here are the five situations that could allow you to claim pet-related expenses.
Service Dogs
You likely are eligible for a pet tax write-off if you have a certified service animal for a diagnosed physical, mental, or learning disability, like a psychiatric service dog for PTSD or a guide dog for visual impairment. Under these circumstances, the dog is deemed a qualified medical expense for you, so you could deduct the cost of food, veterinary care, training, and other expenses. In the government’s eyes, service dogs are not considered pets; they’re considered working animals.
For a service animal to qualify for an IRS tax deduction, they must be specially trained to carry out particular tasks relevant to your disability. Tax deductions are generally not available for comforting emotional support animals (ESAs) that are not specially trained. Provide a note from your physician as proof that you require a service animal.
Read our comprehensive article about service dogs, therapy dogs, and emotional support dogs to understand the differences.
Working Animals
If your pet plays an essential role in your business, you might be eligible for a tax deduction as a qualified business expense. For instance, having a guard dog for security purposes for your place of work (not at home) or a farm dog to help with herding livestock can both be considered deductible business expenses.
It’s important to demonstrate that the costs associated with your pet are essential for your business. Eligible pet-related expenses could include food, veterinary bills, and more. Additionally, it’s wise to track how much time your pet spends at your business.
Performance Animals
You might be eligible for a pet tax deduction if your furry friend contributes to your annual business income. For example, if your pet appears in movies, TV shows, or commercials, participates in competitions with cash rewards, or, more likely these days, is a pet influencer on a monetized social media channel, you could potentially deduct expenses related to them. However, it’s important to keep detailed records of all associated costs.
Foster Pets
If you foster a pet through a 501(c)(3) adoption organization, you might be eligible to deduct some out-of-pocket expenses you incur. This can include costs for food, supplies, and veterinary care for the foster pet. Additionally, you can claim 14 cents per mile for any driving related to your charitable activities, although this usually does not cover your daily commute to the organization. Just be sure that the pet you’re fostering comes from an IRS-recognized 501(c)(3) organization to qualify for these deductions. Pets from organizations that don’t meet this requirement won’t be eligible for charity-related write-offs.
Moving Expenses
Prior to the 2017 Tax Cuts and Jobs Act, many taxpayers could deduct moving expenses (including pet-related costs) in certain circumstances. However, this Act changed the rules. Now, you can only deduct moving expenses if you are an active duty military member and you were required to move to a permanent change of station due to a military order. Also, you will only qualify for this tax deduction if your moving expenses exceed what the government paid you to move.
Where Do I File A Claim On My Tax Return?
If you want to claim medical-related pet expenses for a service dog, you must report them on Schedule A (1040) as part of your itemized deductions. Similarly, if you foster a pet for a qualifying nonprofit organization, you would report these expenses as itemized deductions on Schedule A. On the other hand, if your pet is related to your business, you should report those expenses on Schedule C (1040) for business income or loss (for sole proprietors) or on a corporate tax return for other types of businesses.
However, it’s best to first do some math here to determine if it’s more lucrative for you to take the standard deduction versus itemizing. Itemizing will only be beneficial if your itemized deductions exceed the standard deduction for your filing status.* If you take the standard deduction, you cannot claim pet expenses.
*For the 2024 tax year, the standard deduction is $14,600 for single filers and $29,200 for those married and filing jointly.
Save Your Documentation
It’s crucial to keep all of your pet-related receipts in case you get audited. If you’re claiming expenses for a service animal or a foster pet, be sure to have the necessary documentation from your doctor or a nonprofit organization. A Letter of Medical Necessity (LMN) from a licensed healthcare provider can also support your need for a service animal.
Frequently Asked Questions
Pet parents have a lot of questions about claiming animals on taxes, and here are the most common ones I see. If I haven’t addressed your question, please hit me up in our comments.
Can You Deduct Pet Medical Expenses?
You may be able to report pet medical expenses, such as vet bills and medications, as long as you can provide proof that the expenses are for a service animal, a business-related pet, or related to fostering.
Does Pet Insurance Count As A Pet Tax Write-Off?
Pet insurance could potentially be tax deductible. For instance, if your pet serves as a service animal or plays a role that helps generate your annual income, you might be able to deduct the cost of their health insurance on your taxes.
Is Pet Insurance A Good Investment?
Regardless of whether you can claim your pet as a tax write-off or not, obtaining pet insurance can be an excellent investment. Why? Veterinary expenses are surpassing general inflation rates these days, and you never know when your pet is going to face an unforeseen accident or illness.
It’s best to get your pet an insurance policy before significant health issues arise. Otherwise, insurance providers consider it a pre-existing condition, which, in most cases, isn’t covered. Learn more about the benefits of pet insurance and the top providers we recommend.
Why Trust Canine Journal?
Sally has years of experience in financial and estate planning communications for various organizations and foundations. She’s also been a researcher, writer, and editor for Canine Journal for over a decade. The CJ team is a dedicated group of canine professionals and experienced dog owners who are committed to providing trustworthy, research-backed information to help keep pup parents informed and your pup healthy and comfortable.