Can You Write Off Service Dog Expenses?

Many individuals rely on service animals for assistance with various medical conditions, and a common question that arises is whether the associated costs can offer any tax relief. The Internal Revenue Service (IRS) acknowledges that certain medical expenses may be deductible, and this can extend to the acquisition and maintenance of a qualified service animal. Understanding the specific IRS rules and requirements is essential for taxpayers considering this deduction.

Qualifying as a Medical Expense

For a service animal’s expenses to qualify as a medical deduction, the animal must be primarily for medical care to alleviate a physical or mental illness. The Internal Revenue Service (IRS) considers a service animal as medical equipment if it is trained to assist an individual with a disability. This means the animal’s main purpose must be to mitigate a diagnosed physical or mental impairment, not merely to provide companionship or general well-being.

A crucial requirement for this deduction is a recommendation or prescription from a licensed medical professional, such as a physician, psychiatrist, or psychologist. This documentation should state the medical necessity of the service animal to address a specific diagnosed condition. Unlike service animals, expenses for emotional support animals (ESAs) are not tax-deductible because the IRS does not categorize them as qualifying medical expenses, as their primary role is comfort rather than specific task performance for a disability.

Deductible Service Dog Costs

Once a service dog qualifies as a medical expense, many related costs become eligible for deduction.

• The initial cost of acquiring the service dog, including its purchase price, can be deducted.
• Training expenses are also deductible, covering fees for the service dog’s training and any training the owner or handler undergoes.
• Ongoing maintenance costs are also eligible, including food, grooming, and veterinary care, such as routine check-ups, vaccinations, and necessary medications.
• Specialized equipment like harnesses, vests, or mobility aids directly related to the service animal’s function can be deducted.
• Boarding costs may qualify if the owner is hospitalized or unable to care for the dog temporarily, and the boarding is essential for the animal’s continued ability to perform its duties.

Claiming the Deduction on Your Tax Return

To claim service dog expenses, taxpayers must itemize their deductions on Schedule A (Form 1040) of their tax return. This means they cannot take the standard deduction, and their total itemized deductions must exceed the standard deduction amount for their filing status to realize a tax benefit.

Medical expenses, including those for a service animal, are subject to an Adjusted Gross Income (AGI) threshold. Only the amount of qualified medical expenses that exceeds 7.5% of your AGI is deductible. For example, if your AGI is $50,000, the first $3,750 (7.5% of $50,000) of medical expenses are not deductible. If your total qualified medical expenses are $5,000, you could deduct $1,250 ($5,000 – $3,750) as part of your itemized deductions.

Essential Documentation and Substantiation

Maintaining thorough and accurate records is for substantiating all claimed service dog expenses. In the event of an IRS inquiry or audit, these records provide the necessary proof for the deduction.

Key documentation includes a medical necessity letter or prescription from a qualified healthcare professional, which explicitly states the need for the service animal to mitigate a diagnosed condition. Taxpayers should retain purchase receipts for the service dog, invoices for any training received, and detailed veterinary bills for all medical care. Receipts for ongoing costs such as specialized equipment, food, and grooming are also important to keep. Organizing these records, perhaps in chronological order or digitally, can significantly simplify the substantiation process if requested by the IRS. This comprehensive documentation is fundamental to supporting the legitimacy of the service animal deduction.