Can You Write Off a Service Dog on Your Taxes?
Navigate IRS rules for deducting service dog expenses. Discover strict eligibility, qualified costs, and the claiming process for medical necessity.
If you rely on a service dog for a medical condition, you may deduct certain related expenses on your federal income tax return. While typical pet costs are generally not deductible, service animals meeting specific Internal Revenue Service (IRS) criteria can qualify as medical care. This allows for a reduction in your taxable income, recognizing their specialized role in supporting individuals with disabilities.
Eligibility for Deduction
For a service animal’s expenses to be tax-deductible, the animal must meet the IRS definition of “medical care.” This means the animal must primarily alleviate a mental defect or illness, or assist a visually impaired, hearing disabled, or physically disabled person. The animal’s purpose must directly relate to a specific medical condition diagnosed by a physician.
The service animal’s function must alleviate the effects of the diagnosed medical condition. A doctor’s recommendation or prescription for the service animal is necessary to substantiate this medical necessity. Without a clear medical purpose, expenses are not deductible.
The IRS’s definition of a service animal for tax purposes is narrower than the Americans with Disabilities Act (ADA) definition. Animals providing only companionship or emotional support, such as emotional support animals or therapy animals, do not qualify for this deduction. The animal must perform specific tasks directly related to the disability, not merely provide comfort.
Qualified Expenses
A range of expenses associated with a service animal’s acquisition and upkeep can be deductible medical expenses. These include the cost of purchasing the service animal, especially if trained for a medical condition. Training costs, both for the animal and for the owner to learn how to work with the animal, are also deductible.
Ongoing maintenance costs are eligible for deduction as they are necessary for the animal to maintain its health and perform its functions. This includes expenses for food and grooming. Veterinary care, covering routine check-ups, vaccinations, and medical treatments, also qualifies. Additionally, costs of specialized equipment, such as harnesses, vests, or specialized beds, can be included. Miscellaneous costs related to the animal’s ability to provide assistance, like boarding expenses when the owner is away, are also deductible.
How to Claim the Deduction
To claim deductions for service dog expenses, you must itemize your deductions on Schedule A (Form 1040), Medical and Dental Expenses. This means you will forgo the standard deduction and list specific deductible expenses. Itemizing is only beneficial if your total itemized deductions exceed the standard deduction for your filing status.
The Adjusted Gross Income (AGI) threshold is a key aspect of the medical expense deduction. You can only deduct medical expenses exceeding 7.5% of your AGI. For example, if your AGI is $60,000, only expenses above $4,500 (7.5% of $60,000) are deductible. If your total qualified medical expenses were $8,000, you could deduct $3,500. The deductible amount is then added to other itemized deductions on Schedule A.
When preparing your tax return, list your total medical expenses on line 1 of Schedule A and your AGI on line 2. The form’s calculation will determine the deductible amount. Ensure all qualified expenses are totaled before applying the AGI limitation.
Record Keeping and Distinctions
Meticulous record-keeping is essential for substantiating service animal deductions. You should retain all receipts and invoices for qualified expenses, including purchase costs, training fees, food, veterinary bills, and any specialized equipment. It is important to maintain documentation from a medical professional, such as a doctor’s recommendation or prescription, that clearly states the medical necessity of the service animal for your specific condition. Records of the animal’s training and any certifications should be kept.
Differentiate between a qualified service animal for tax purposes and other types of animals that do not qualify for this deduction. Expenses for emotional support animals, therapy animals, or regular pets kept solely for companionship or general well-being are not deductible. This also applies to animals used primarily for security or protection. The IRS requires the animal to be performing tasks directly related to a diagnosed medical condition for its expenses to be considered medical care.