Can I File My Dog On My Taxes? Here’s What the IRS Says

The Internal Revenue Service (IRS) generally considers pets personal property, meaning they cannot be claimed as dependents. While most pet care costs are personal expenses, certain specific pet-related expenses may be deductible under limited circumstances.

Understanding Pet Tax Deductions

The IRS does not recognize pets as qualifying dependents. Unlike human family members, pets do not qualify for dependency exemptions or credits on your federal income tax return. The rules for claiming dependents are specific, focusing on age, relationship, residency, and financial support, none of which apply to animals.

Most expenses associated with pet ownership, such as food, routine veterinary care, toys, and grooming, are considered personal expenses by the IRS. These costs are generally not tax-deductible, meaning everyday household pet care offers no tax advantages.

Emotional support animals (ESAs) are distinct from service animals in the eyes of the IRS. While ESAs provide comfort and support, they are typically not trained to perform specific tasks directly related to a disability. Therefore, expenses for emotional support animals generally do not qualify as deductible medical expenses, unless they meet the strict criteria of a service animal.

Deducting Service Animal Expenses

Expenses for a service animal can be deducted as medical expenses if the animal is trained to perform tasks for an individual with a disability. The IRS specifies that a service animal must assist in mitigating a physical or mental disability, such as guide dogs or hearing dogs. To qualify, a medical diagnosis and physician’s recommendation are necessary to substantiate the deduction.

Eligible expenses include the animal’s purchase cost, specialized training, and ongoing maintenance like food, grooming, and veterinary care. These are deductible if primarily for the animal to perform its duties and directly related to assisting with the medical condition.

These service animal expenses are considered part of your medical expenses and are deductible only if you itemize deductions on Schedule A (Form 1040). Furthermore, your total unreimbursed medical expenses must exceed 7.5% of your Adjusted Gross Income (AGI) before any deduction can be claimed. Maintaining meticulous records, including receipts for all costs and documentation of the animal’s service status, is crucial for substantiating these deductions.

Business Use of Animals

When an animal serves a legitimate business purpose, its related expenses can be tax deductible as ordinary and necessary business expenses. An expense is “ordinary” if common in your industry, and “necessary” if helpful for your business. The animal must play a direct role in generating income or protecting business assets, not merely provide companionship.

Examples of qualifying business use include guard dogs for business premises, especially for properties needing security like warehouses or dealerships. For such animals, expenses like food, veterinary care, and training are deductible. The initial cost of purchasing the animal can be depreciated over several years, typically seven, or potentially deducted in one year using Section 179 if it meets specific criteria. Documentation of the animal’s working hours and purpose, along with its breed and training, is important.

Animals used in a professional performance or entertainment business, such as those appearing in films, commercials, or social media content that generates income, also qualify. Similarly, animals used in a specific trade, like a therapy animal utilized by a mental health professional in their practice, can be deductible if their role is integral to the services offered. For breeding animals, all business-related expenses, from food and vet care to advertising, are deductible, provided the activity is a legitimate for-profit business and not a hobby.

Farmers can deduct expenses for working animals, such as herding dogs or livestock guardian dogs, as these animals directly contribute to farming activities. The expenses for these animals, including their care and maintenance, are considered necessary for the operation of the farm. If an animal serves both a business and personal purpose, only the portion of expenses directly attributable to the business use can be deducted. Maintaining clear records, distinguishing business from personal expenses, is crucial for substantiating these deductions.

Charitable Contributions and Other Scenarios

Beyond service animals and business use, limited situations offer pet-related tax benefits. One scenario involves fostering animals for a qualified 501(c)(3) animal rescue or humane society. Unreimbursed out-of-pocket expenses directly related to their care can be considered charitable contributions.

These deductible expenses may include the cost of food, veterinary care, and supplies for the foster animal. It is important to obtain proper documentation from the charity, confirming your volunteer status and the expenses incurred. Additionally, if you use your vehicle for charitable activities, such as transporting foster animals to vet appointments or adoption events, you may be able to deduct mileage at a specific rate, which is 14 cents per mile for charitable driving.

Another narrow exception for deducting pet-related costs involves active-duty military personnel. If a permanent change of station (PCS) requires a move, certain pet moving expenses may be deductible. This exception is highly specific and subject to strict IRS rules regarding relocation expenses, typically requiring the move to be a significant distance farther from the old home than the old workplace.