Can I Claim My Service Dog on My Taxes?

Individuals rely on service animals for assistance with medical conditions. The Internal Revenue Service (IRS) allows taxpayers to deduct certain medical expenses, including costs associated with a qualifying service animal. This article clarifies the criteria for claiming service animal expenses, details eligible costs, and outlines record-keeping and claiming procedures.

Qualifying Medical Expenses for Service Animals

The IRS defines medical expenses as costs paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. For a service animal’s expenses to qualify, the animal must be primarily for the alleviation or prevention of a physical or mental disability or illness. This means the service animal is considered a form of medical equipment.

A service animal must be specifically trained to perform tasks directly related to an individual’s disability, distinguishing it from a pet or an emotional support animal (ESA) for tax purposes. For example, a service animal might guide individuals with visual impairments, alert those who are deaf to sounds, pull a wheelchair, or assist a person during a seizure. To substantiate the medical necessity of a service animal, taxpayers should have documentation, such as a doctor’s recommendation or prescription, linking the animal to a diagnosed medical condition.

Eligible Service Animal Costs

Once a service animal meets IRS criteria for medical necessity, associated costs are eligible for deduction. These expenses must be ordinary and necessary for the animal to perform its duties as a medical aid. The initial cost of acquiring the service animal is a deductible expense.

Training costs are also deductible, encompassing both the animal’s specialized task training related to the disability and any training the owner receives to handle the animal effectively. Ongoing maintenance expenses are deductible, including the cost of food and dietary supplements necessary to maintain the animal’s health and ability to perform its tasks. Veterinary care, such as routine exams, vaccinations, medications, and surgeries, also qualifies as a deductible expense.

Other eligible costs include grooming essential for the animal’s health, specialized equipment like harnesses, vests, or specific beds if medically necessary. Travel expenses for the animal, such as airfare when it accompanies the owner for medical treatment, can also be included.

Record Keeping and Claiming Your Deduction

Record keeping is crucial for claiming service animal expenses. Retain all documentation supporting the service animal’s medical necessity, such as a doctor’s note or prescription linking the animal to a diagnosed medical condition. Keep detailed receipts for all eligible expenses, including the purchase price, training invoices, veterinary bills, food purchases, and specialized equipment. Maintaining proof of the animal’s service dog status, such as training certificates, can also be beneficial.

To claim these expenses, taxpayers must itemize their deductions on Schedule A (Form 1040) of their federal income tax return. Service animal costs are included under the “Medical and Dental Expenses” section of Schedule A. Only the amount of medical expenses exceeding 7.5% of the taxpayer’s Adjusted Gross Income (AGI) is deductible. For example, if a taxpayer’s AGI is $50,000, the first $3,750 (7.5% of $50,000) of medical expenses are not deductible. If the total qualifying medical expenses are $5,000, only $1,250 ($5,000 – $3,750) is deductible.

Itemizing deductions is beneficial only if the total of all itemized deductions (including medical expenses, state and local taxes, mortgage interest, and charitable contributions) exceeds the standard deduction for the taxpayer’s filing status. If the standard deduction provides a greater tax benefit, taxpayers choose that option. Taxpayers should not include any expenses reimbursed by insurance or other sources.