Can You Claim a Service Dog on Your Taxes?

Many individuals rely on service animals for support in navigating daily life. The Internal Revenue Service (IRS) allows taxpayers to deduct certain medical expenses, which can include qualifying expenses related to service animals. This article explores the guidelines for deducting service animal expenses.

Defining a Qualified Service Animal and Medical Care

A service animal, for tax purposes, must primarily assist an individual with a physical or mental disability. The animal’s role must be directly related to alleviating or mitigating the effects of that disability. This strict definition differentiates a qualified service animal from a general pet or an emotional support animal not specifically trained for a medical task.

The IRS outlines that the animal’s services must be specifically prescribed by a medical professional to address a diagnosed medical condition. For example, a guide dog assists an individual with visual impairment, or a seizure alert dog provides warnings during epileptic episodes. Expenses must be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any body structure or function. This includes payments for medically necessary services and supplies.

Expenses for a service animal are considered medical care if the animal performs specific, medically necessary tasks that directly address a medical condition. The animal’s purpose must be to provide specific medical assistance rather than general companionship or emotional comfort. This distinction is crucial because general pet care expenses are not deductible without direct medical necessity.

The animal must be trained to perform tasks the individual cannot perform due to their medical condition, such as retrieving items, providing balance support, or alerting to medical changes. The focus remains on the direct medical function. Only expenses for medically necessary assistance are eligible for tax consideration.

Eligible Expenses for Service Animals

Once an animal qualifies as a service animal for tax purposes, several associated costs can be included as medical expense deductions. The initial cost of acquiring a service animal can be deductible if the animal is specifically trained and purchased to address a medical condition. This includes the purchase price paid to a recognized training organization or breeder for an animal trained for specific medical tasks.

Expenses incurred for the animal’s specialized training are also deductible. This covers costs for professional training programs that teach the animal specific tasks related to the individual’s disability, such as alerting to changes in blood sugar levels or providing mobility support.

Ongoing maintenance expenses for the service animal are eligible deductions. This includes the cost of food, routine grooming services, and necessary equipment like specialized harnesses, vests, or mobility aids. These expenses must be directly related to the animal’s ability to perform its medical functions.

Routine and emergency veterinary care, including regular check-ups, vaccinations, and prescribed medications, qualify as deductible expenses. If the individual must travel for medical treatment and the service animal accompanies them, the costs for the animal’s lodging during that period may also be included as part of the medical expense.

It is important to maintain detailed records for all these expenses, including receipts for purchases, training invoices, veterinary bills, and any documentation supporting the medical necessity of the service animal. These records are crucial for substantiating the deductions in the event of an IRS inquiry.

How to Claim Service Animal Expenses

Service animal expenses are claimed as medical expense deductions on a taxpayer’s federal income tax return. These deductions are itemized and reported on Schedule A (Form 1040). Taxpayers must choose to itemize deductions rather than taking the standard deduction, meaning their total itemized deductions must exceed their applicable standard deduction amount.

A significant limitation applies to medical expense deductions, including those for service animals. Only the amount of unreimbursed medical expenses that exceeds 7.5% of the taxpayer’s Adjusted Gross Income (AGI) can be deducted. For example, if a taxpayer has an AGI of $60,000, they can only deduct medical expenses that exceed $4,500 (7.5% of $60,000). If their total qualified medical expenses for the year amount to $8,000, they would be able to deduct $3,500 ($8,000 minus the $4,500 AGI threshold).

This threshold means that taxpayers need to accumulate a substantial amount of qualified medical expenses before they can realize a tax benefit. It is important to aggregate all qualifying medical expenses for the year, including those for the service animal, prescription medications, doctor visits, and other eligible medical care, to determine if the 7.5% AGI threshold is met. Expenses reimbursed by insurance or other sources cannot be included in the deductible amount.

Maintaining thorough and accurate records is essential for substantiating these deductions. This includes detailed receipts for all services and purchases related to the service animal, such as adoption fees, training costs, food bills, and veterinary statements. Documentation from a medical professional confirming the medical necessity of the animal and its specific tasks is also important. These records should be kept for at least three years from the date the tax return was filed, as the IRS may request them for verification.