Are Service Dogs Tax Deductible as Medical Expenses?

The costs associated with buying, training, and maintaining a service animal to assist with a medical condition can be included as medical expenses for tax deduction purposes. The Internal Revenue Service (IRS) has specific requirements that must be satisfied to claim these costs. Successfully claiming these expenses requires understanding which costs qualify and the process for claiming the deduction. Taxpayers must navigate the rules for itemizing deductions and meet a specific income threshold before any benefit is received.

Service Animal Qualification for Tax Purposes

For tax purposes, the IRS defines a service animal as one that is trained to perform specific tasks for individuals with physical, sensory, or mental health disabilities. This includes guide dogs for the visually impaired, hearing dogs for the deaf, or animals trained to provide stability or alert to an impending medical event. The animal must perform work directly related to the disability.

It is important to differentiate a service animal from an emotional support animal. While emotional support animals can provide comfort and companionship, they are not trained to perform a specific, disability-related task. The IRS does not permit the deduction of costs associated with emotional support animals.

To substantiate an animal’s status, it is helpful to have documentation from a medical provider that recommends the use of a service animal to treat a specific medical condition. For tax purposes, being able to demonstrate the animal’s training and direct link to the medical need is beneficial. This could include training certificates or records that show the animal’s ability to perform its designated tasks effectively.

Allowable Service Animal Expenses

When calculating the medical expense deduction for a service animal, a range of costs can be included. The initial cost of purchasing the animal is a primary allowable expense. This is followed by the costs of professional training to perform specific, disability-related tasks.

Ongoing maintenance costs are also deductible and form a substantial part of the claim. These expenses include the cost of food, grooming, and routine and emergency veterinary care. All these expenditures must be for the service animal itself and not for other household pets.

Record-keeping is a requirement for claiming these expenses. You must keep all receipts, invoices, and bank statements related to the purchase, training, and upkeep of your service animal. This documentation serves as proof of the expenses incurred and is necessary if the IRS requests verification. Without a detailed paper trail, the deduction could be disallowed.

How to Claim the Medical Expense Deduction

To claim service animal costs, you must choose to itemize deductions on your tax return using Schedule A of Form 1040. This means forgoing the standard deduction. It makes financial sense to itemize only if your total itemized deductions—including medical expenses, state and local taxes, and mortgage interest—exceed your standard deduction amount. The standard deduction amounts are adjusted annually for inflation and vary by filing status.

A limitation on deducting medical expenses is the Adjusted Gross Income (AGI) threshold. You can only deduct the amount of total medical expenses that exceeds 7.5% of your AGI. For example, if your AGI is $60,000, the 7.5% threshold would be $4,500. If your total qualifying medical expenses, including all service animal costs, were $7,000, you would subtract the $4,500 threshold, leaving a deductible amount of $2,500.

After calculating your total medical expenses and subtracting the 7.5% AGI floor, the resulting figure is entered on Schedule A. This amount is then combined with your other itemized deductions. The total of all itemized deductions is then used to reduce your taxable income, which ultimately lowers your tax liability.