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The rumors are true, your pet could help lower your tax bill.
As an accountant and pet parent of a Goldendoodle named Milo, I’m well-versed in the rules surrounding pet deductions. I’ve worked with clients whose pets bring in big paydays from commercials, movies and social media brand deals. They can rack up expenses that you can claim as a tax break.
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However, your pet doesn’t have to be a social media star to qualify; the IRS also lets you claim expenses for service animals, business-related pets and fostering an animal. Most pet expenses aren’t tax deductible and you can’t claim your pet as a dependent on your tax return, but there are some exceptions that are becoming more common.
Here are the pet-related tax breaks the IRS offers and how to claim them.
When can you claim your pet on your taxes?
The Internal Revenue Service allows pet deductions in cases where they serve a qualifying purpose, such as medical necessity, business use, or charitable work.
Here are a few scenarios:
Service animals as a medical expense deduction
You may qualify for this tax deduction if you have a certified service animal, such as a guide dog for visual or hearing impairment. Service animals for a diagnosed medical condition may also qualify. If a veteran with PTSD has a trained service dog to assist them through medical episodes, they can also deduct the cost of food, training and medical care as a medical expense.
The service animal must be trained, by you or a professional, to perform specific tasks for an individual with a disability, as defined by the Americans with Disabilities Act. Emotional support animals, which provide comfort but do not perform specific tasks, don’t qualify for this deduction.
The Internal Revenue Service allows medical expense deductions for pet costs such as:
Guard dogs and business animals count as a business expense deduction
If your pet is critical to maintaining your business, you may qualify for a tax deduction. For example, if you have a guard dog for security or a farm dog for herding livestock, both count as a deductible business expense. Even cats at popular cat cafes count since customers pay to have coffee with them.
Here are a few deductible expenses:
- Food and veterinary bills
- Security-related expenses for guard dogs
- Training costs
Foster pets are a charitable contribution deduction
If you foster pets through a registered 501(c)(3) nonprofit organization, you may be able to deduct the costs for their care as a charitable contribution. That’s if these costs aren’t reimbursed to you by the nonprofit.
For example, if you foster kittens for a local rescue, and cover the cost of food and medical care, these costs are deductible as long as the organization is IRS-recognized and the costs are not reimbursed. This may include:
- Food and supplies
- Veterinary care and medication
- Adoption fees
- Transportation expenses (like gas or mileage costs)
Pets that earn income as a performer
My daughters are obsessed with cat videos on YouTube. Pet influencers have become more common on social media. Just scroll through YouTube or TikTok, and you’ll find countless pets lounging, playing and their owners getting paid for it.
If your pet is making money as a performer, pay attention to the options below so you can strategize how to make the most of tax write-offs. Animals that make money through commercials, movies, social media brand deals or modeling gigs could be considered part of a business.
This kind of work allows for tax write-offs for things like:
- Food
- Bedding
- Boarding
- Grooming supplies
- Veterinary care
- Medication
Pet expenses that are not tax deductible
It’s tempting to want to write off every pet expense, but most pet-related costs are considered personal and not deductible. Here’s a breakdown of what you generally cannot claim for household pets:
● Routine pet care: Daily necessities such as food, regular grooming, toys and boarding are seen as personal expenses. Your pet’s daily care is considered part of the joy and cost of having a pet — not a business or medical necessity.
● Household veterinary expenses: While medical expenses for a service animal might be deductible, routine vet care for your household pet isn’t. Regular check-ups, vaccines and preventive treatments are viewed as personal care — not qualifying medical expenses.
● Training classes or obedience school: Basic training for your pet’s behavior and obedience doesn’t qualify for a deduction. Only specialized training to perform a task — as required for a service animal or one directly related to your pet’s income-generating activities — may be deductible.
● Pet insurance premiums: The premiums you pay for pet health coverage are considered a personal expense. Keeping your pet insured for its health is important, but it doesn’t translate into a tax break.
The gray area for tax deductions for pets
If an expense serves both personal enjoyment and a business purpose (for example: a pet that doubles as a social media influencer), only the portion directly related to business might be deductible. However, splitting these costs can be tricky — so it’s best to consult a tax professional to determine which expenses count.
Costs associated with pet vacations, fun accessories or any expense that doesn’t directly support a qualifying business or medical need are off the table. Remember, if an expense isn’t clearly linked to a qualifying purpose as defined by the IRS guidelines, it’s safer not to deduct it.
How to claim your pet on your taxes
If you believe your pet expenses qualify, here’s what you should do next:
File the right tax forms
Medical-related pet expenses go under Schedule A for itemized deductions. You’ll need to choose between the standard deduction or itemizing — whichever lowers your tax liability or gives you the biggest refund. If the standard deduction is the better option, pet expenses won’t count.
Business-related pet expenses (like an influencer pet, a guard dog or a rodent-controlling cat) may be listed under Schedule C for business profits or loss. However, depending on your business structure, these expenses might need to be deducted from a corporate tax return.
Keep a record of your expenses
Review IRS guidelines or consult a tax professional to confirm whether your pet expenses qualify.
Save your receipts for food, vet visits, training and other related costs in case these expenses are eligible for a deduction. It’ll make the tax filing process smoother and come in handy in case you’re audited by the IRS.
If you are claiming the expenses of a service animal or foster pet, ensure you have the proper paperwork from your doctor or nonprofit organization. Additionally, a Letter of Medical Necessity from a licensed healthcare professional can help verify your need for a service animal.
I recommend keeping receipts and documents for at least seven years along with the other tax information for that tax year. If you can’t prove it, don’t deduct it.