Are Therapy Dogs Tax Deductible as a Medical Expense?

The Internal Revenue Service (IRS) has specific guidelines for tax deductions related to animals. While “therapy dog” is a common term, its tax deductibility depends on whether the animal meets the IRS’s strict definition of a service animal for medical care. Not all animal expenses qualify; general companionship or comfort animals typically do not. Deductibility relies on the animal’s role in alleviating or preventing a diagnosed physical or mental disability, rather than providing general health benefits or emotional support.

Qualifying as a Medical Expense

For an animal to be a deductible medical expense, it must meet specific IRS criteria, aligning with the Americans with Disabilities Act (ADA) definition of a service animal. The animal must be individually trained to perform tasks directly related to a person’s physical or mental disability. Its primary purpose is to assist with a diagnosed medical condition, not general comfort or companionship.

A medical professional, such as a doctor or psychiatrist, must prescribe the animal for a specific medical condition. This prescription serves as crucial documentation, indicating a clear diagnosis and the animal’s necessity for treatment or mitigation of the disability. Without this medical necessity, expenses for the animal are not deductible.

The animal’s role must be solely for medical care. Examples of qualifying tasks include guiding the visually impaired, alerting individuals who are deaf, pulling a wheelchair, or assisting during a seizure. The animal might also remind an individual with a mental illness to take prescribed medications or calm someone with Post Traumatic Stress Disorder (PTSD) during an anxiety attack.

It is important to distinguish between a service animal and an emotional support animal (ESA) or a general pet. While ESAs provide comfort and companionship, they are not trained to perform specific disability-related tasks and typically do not qualify for tax deductions. The IRS views service animals as working animals, not pets; only expenses for animals performing disability-related tasks are considered for deduction.

Deductible Costs

Once an animal qualifies as a service animal, various associated expenses can be considered deductible medical costs. The initial cost of acquiring the animal can be included, provided it meets medical expense criteria. Expenses for specialized training that enables the animal to perform disability-related tasks are also deductible.

Ongoing maintenance expenses are also eligible for deduction. These include food, grooming, and routine veterinary care necessary to maintain the animal’s health and ability to perform its duties. Any medications the animal requires to remain healthy and effective in its service role are also deductible.

Necessary equipment directly related to the animal’s service function is also deductible. This includes specialized vests, harnesses, leashes, or other gear essential for the animal to perform its tasks. If travel is required for the service animal to receive medical care or specialized training related to its function, those travel expenses may also be deductible.

It is important to understand which costs are not deductible. Expenses for a general pet providing only companionship are considered personal expenses and are not eligible for deduction. This includes routine veterinary bills, food, grooming, and pet insurance premiums for animals that do not meet the service animal definition. Similarly, costs for pet-sitting for vacations or general pet insurance not specifically for a qualifying medical service animal are not deductible.

Claiming the Deduction

To claim expenses for a qualifying service animal, taxpayers must itemize their deductions on Schedule A (Form 1040) of their federal income tax return. The total of all itemized deductions, including medical expenses, must exceed the taxpayer’s standard deduction for a tax benefit. For example, the standard deduction for a single filer in tax year 2024 is $14,600, and for those married filing jointly, it is $29,200.

Medical expenses, including those for a service animal, are subject to an Adjusted Gross Income (AGI) threshold. Only the amount of qualified medical expenses that exceeds 7.5% of the taxpayer’s AGI is deductible. For instance, if a taxpayer has an AGI of $50,000, the first $3,750 (7.5% of $50,000) of medical expenses are not deductible. If that taxpayer had $5,000 in qualifying medical expenses, only $1,250 ($5,000 – $3,750) would be deductible.

Meticulous record-keeping is paramount when claiming these deductions. Taxpayers should retain all documentation, including the medical professional’s prescription or recommendation for the service animal, receipts for all related expenses, and any records proving the animal’s training and service role. These records are not submitted with the tax return but must be kept on hand in case the IRS requests them for verification during an audit.

Deductible medical expenses, including those for a service animal, are reported on Schedule A under the medical and dental expenses section. Taxpayers calculate their total qualifying medical expenses, apply the 7.5% AGI threshold, and then enter the deductible portion on Schedule A. This amount contributes to overall itemized deductions, which can reduce taxable income if they surpass the standard deduction.