Can You Claim a Service Dog as a Dependent?
Understand service dog tax rules. While not a dependent, certain expenses may be deductible. Learn how to claim your benefits.
A service dog cannot be claimed as a dependent on your tax return. While these animals provide invaluable support, the Internal Revenue Service (IRS) does not recognize them as qualifying individuals for dependent status. However, certain expenses related to a service dog may be considered deductible medical expenses, potentially offering tax benefits.
Understanding Tax Dependents
A dependent is either a “qualifying child” or a “qualifying relative.” To be a qualifying child, an individual must meet specific criteria including relationship, age, residency, and support tests. This includes being a child, stepchild, foster child, or sibling, meeting age requirements, living with you for over half the year, and not providing more than half of their own support.
A qualifying relative must also meet several tests, such as having gross income below a specific threshold, receiving more than half of their financial support from you, and not being a qualifying child of any other taxpayer. Service dogs do not meet any of these criteria for a dependent, so they are not eligible for dependent claims.
Service Dog Expenses as Medical Deductions
Although a service dog cannot be claimed as a dependent, their associated costs can be included as medical expenses on Schedule A. The IRS considers the costs of buying, training, and maintaining a service animal as medical expenses when the animal assists an individual with a physical disability or medical condition. The animal must be specifically trained to perform tasks that alleviate the effects of the disability or medical condition.
These expenses must be primarily for the medical care of the owner, not for general pet care or for emotional support animals that do not perform specific tasks related to a diagnosed condition. The IRS specifies that the animal must assist a visually impaired or hearing-disabled person, or a person with other physical disabilities. This distinction is for tax deductibility.
Eligible Service Dog Expenses
Once a dog qualifies as a service animal for tax purposes, many related expenses become potentially deductible medical expenses. These include the initial cost of acquiring the service dog. Expenses for professional training, including lessons and classes, are also eligible.
Ongoing costs for the service dog to perform its duties are also deductible. These include veterinary care, annual wellness exams, emergency surgeries, prescription medications, and dental cleanings. The cost of food, grooming, and specialized equipment like vests, harnesses, and leashes can also be included. These expenses maintain the animal’s health so it can fulfill its medical role.
Required Documentation for Deductions
To substantiate service dog medical expense deductions, taxpayers must maintain thorough documentation. A letter from a doctor or other medical professional stating the medical necessity of the service dog for a specific physical disability or medical condition is required. This letter establishes the direct link between the animal and the medical need.
Proof of the service dog’s training and certification should also be retained. This demonstrates that the animal is a working service dog. Detailed records and receipts for all claimed expenses are also necessary. These records should include the name and address of the payee, the amount and date of each payment, and what medical care was received. Taxpayers do not send these records with their return but must keep them for potential IRS review.
Claiming Your Deduction
After gathering all necessary documentation, service dog expenses are claimed as itemized deductions on Schedule A. Only the portion of your total medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI) can be deducted.
If your total qualifying medical expenses are less than this AGI threshold, you will not receive a deduction. Taxpayers must itemize their deductions rather than taking the standard deduction to claim these expenses. It is advisable to compare your total itemized deductions, including service dog expenses, to the standard deduction to determine which option provides the greater tax benefit.