Can You Claim Your Pet on Your Taxes?

The Internal Revenue Service (IRS) generally considers household pets personal property, and their associated costs are personal expenses, which are not deductible. However, specific situations allow certain animal-related expenses to qualify for a tax deduction. These exceptions depend on the animal’s purpose, such as providing medical assistance, generating income, or contributing to a qualified charitable organization.

General Pet Expenses

Most expenses associated with owning a household pet are not tax-deductible. This includes common costs like pet food, routine veterinary check-ups, vaccinations, toys, grooming services, and boarding fees. The IRS classifies these as personal living expenses, similar to personal groceries or clothing. Pet insurance premiums are also not deductible for personal pets.

Service Animals

Expenses related to service animals can be tax-deductible under specific conditions. A service animal, as defined by IRS guidelines, is an animal, such as a dog, specifically trained to assist an individual with a physical or mental disability. This includes animals that guide visually impaired individuals, alert hearing-impaired individuals, or provide support for other physical disabilities.

Service animals differ from emotional support animals, as the latter do not qualify for tax deductions because they primarily provide comfort rather than performing specific tasks to mitigate a disability. Deductible expenses for a qualifying service animal include the purchase cost, training fees, food, grooming, veterinary care, and necessary supplies like harnesses or vests. These expenses are considered medical expenses and can be included on Schedule A (Form 1040) if a taxpayer itemizes deductions. The total unreimbursed medical expenses, including service animal costs, must exceed 7.5% of the taxpayer’s adjusted gross income (AGI) to be deductible.

Animals for Business or Income-Generating Activities

Animals used directly for business purposes or to generate income may have their associated expenses deducted. These are considered ordinary and necessary business expenses under Internal Revenue Code Section 162. Examples include guard dogs used to protect business property, farm animals, animals used in entertainment or as performers (e.g., show animals, animal actors), or animals involved in a breeding business.

For a guard dog, expenses such as food, veterinary care, and training are deductible if the animal’s presence is a security measure for the business. Similarly, if a pet earns income, such as through acting, modeling, or social media influencing, the related expenses like grooming, food, and vet visits can be deducted against that income. Taxpayers must maintain records, including receipts, to substantiate these business expenses. The deduction applies to costs incurred during the animal’s working hours or related to its income-generating activities, and these expenses must be accepted in the relevant trade or business.

Foster Animals and Charitable Contributions

Expenses incurred while fostering animals for a qualified charitable organization may be deductible as charitable contributions. To qualify, the fostering must be done for an organization recognized by the IRS as a 501(c)(3) charity.

Deductible expenses include the costs of food, veterinary bills, medications, and other supplies directly related to the foster animal’s care. A portion of utility bills or cleaning supplies may also be deductible if a specific area of the home is used exclusively for fostering. These unreimbursed expenses are treated as charitable contributions and can be claimed on Schedule A (Form 1040). Taxpayers should keep records, including receipts and a log of activities, and for expenses of $250 or more, obtain written acknowledgment from the charity.