You may have noticed several posts and videos on social media telling you that beginning in 2025, you can claim tax deductions for your pets. Pet-related costs add up quickly, with the average dog parent spending between $15,000 to $30,000 over its lifetime. While it is true that the Internal Revenue Service (IRS) allows pet owners to deduct certain pet-related expenses against your “human” income taxes, they are only allowed under a few certain circumstances, and there are currently no new guidelines – these rules have been in place for quite some time. Let’s break down these claims between what is true and what is not.
Let’s begin with clarifying the lie – Unfortunately, you cannot claim a pet as your dependent, no matter the circumstances. While you may feel your pets are akin to children, and therefore a type of dependent, the IRS does not see it that way.
However, there are two situations where deductible expenses for pets are possible – pets in legitimate business roles and service/emotional support animals.
Pets in Business Roles
If your pet provides a legitimate service to your business, such as security or pest control, pet-related expense may be deductible. Deductible expenses include food, grooming, training and veterinary care. These expenses would be an offset to the actual business income. For example, if the business is a corporation, S-corporation or partnership for federal income tax purposes, the expenses would be claimed on that business’s tax return.
If you have a pet that earns income through modeling, acting or other performances, you may be able to deduct related expenses including training, grooming and transportation. Pets featured in commercials, movies or even social media content might qualify as performers. Remember that it will be you who receives the Form 1099 for the service income received, not your pet. Therefore, you will be responsible for reporting that income on your personal income tax return and claiming the deductions.
Service and Emotional Support Animal
If your pet is a certified service or emotional support animal, some related expenses may qualify for tax deductions, such as costs for food, specialized training and veterinary care. Under the Americans with Disabilities Act (ADA) guidelines, the pet must assist with mobility assistance, seizure protection or emotional support for a diagnosed condition. If under audit, you would need to provide proof to the IRS that your pet qualifies under these requirements.
The IRS has always allowed a medical expense deduction on your personal return for the “costs of buying, training, and maintaining a guide dog or other service animal to assist a visually impaired or hearing disabled person, or a person with other physical disabilities.” This deduction is claimed under Schedule A itemized deductions for medical expenses and is subject to the 7.5-percent adjusted gross income limitation. Further information can be found in IRS Publication 502.
What About Pet-Related Charity?
There are many ways that pet related expenses can be deemed a charitable donation on your personal income tax return, whether in cash or non-cash. In all cases, the organization must be valid 501(C)(3) non-profit as recognized by the IRS.
Examples of expenses that may be deductible as charitable on your Form 1040 Schedule A are:
- Expenses incurred to foster an animal from a fostering or rescue organization, which are not reimbursed by that organization.
- Donations of money, food or other supplies to a not-for-profit rescue, shelter or organization that raises funds for animals.
- Costs or mileage incurred to volunteer at shelters or other pet-focused not-for-profits, in some circumstances. For example, if you transport pets from one state to another to a new rescue, the mileage would be deductible as a charitable donation. If you are simply driving from home to the non-profit location to volunteer, it is not deductible.
No matter the cost, Americans will continue to own and love their pets, as many would count the expense as well as the reward. If these deductions apply to you, take advantage of them by maintaining proper documentation, including certifications and receipts, to substantiate these claims.
For more information, reach out to your Windham Brannon advisor today, or contact Nicole Suk.
