Most pet owners don’t realize that they can actually claim their furry friend as a dependent on their taxes. That’s right – if you own a cat or dog, you may be able to get a tax deduction by listing them as a dependent. Here are 5 ways you can get your tax deducted on your pets.
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1. Service Animals
If you’re physically disabled, you can deduct expenses for a trained service animal that helps you in everyday life, for example, a seeing-eye dog. The type of animal isn’t important, and it doesn’t have to be a dog.
This includes costs such as food, grooming, and veterinarian bills. You’ll need to have a note from a doctor or other medical professional to prove that you have a condition that the animal assists with.
If you have an emotional disability, you may be able to deduct the cost of an emotional support animal. An ESA is a pet that eases your emotional disability.
To qualify for an ESA deduction, you must have a letter from a licensed mental health professional that states: You have an emotional disability.
The animal is necessary for your treatment or to alleviate symptoms of your emotional disability. If you qualify for an ESA deduction, you can deduct the cost of buying or adopting the animal, as well as ongoing costs like food and veterinary care. You can also deduct the cost of renting or modifying your home to accommodate your ESA, such as installing a pet door.
2. Working Animals
If you use your animal in your business, you may be able to deduct the cost of keeping and caring for them. The animal must perform a service or do work in order for the deduction to apply.
For example, if you’re a farmer who uses a horse to help with farm chores, you can deduct the cost of the horse’s care. This includes food, housing, vet bills, and other expenses.
If you have a guard dog for your business, you can deduct the cost of feeding, training, and exercising the dog. You can also deduct the cost of any damage the dog does to the property while on duty.
To claim a deduction for a working animal, you’ll need to file Schedule C with your tax return. This is the form businesses use to report income and expenses.
3. Performance Animals
If you use your animal performance to make money, you can deduct the cost of keeping and caring for them. The deduction applies to animals that take part in shows or other events, such as dogs used in movies or horses used in racing.
This includes the cost of food, housing, training, and veterinary care. You can also deduct the cost of any damage the animal does to property while working.
To claim a deduction for a performance animal, you’ll need to file Schedule C with your tax return. This is the form businesses use to report income and expenses.
4. Fostering Pets
Fostering pets can be a rewarding experience, and it can also help you save on taxes. If you foster animals for a qualified nonprofit organization, you can deduct the cost of caring for them as charitable donations.
To claim a deduction for fostering pets, you’ll need to itemize your deductions on Schedule A of your tax return. This is the form used to report charitable donations.
You’ll need documentation from the nonprofit organization showing that you’re a foster parent, and you’ll need to keep records of your expenses.
5. Pet-Related Moving Expenses
If you move for work, you may be able to deduct the cost of moving your pet. The deduction applies to the cost of transporting your pet by plane, train, ship, or car. It also covers the cost of boarding your pet while you’re moving.
To claim a deduction for pet-related moving expenses, you’ll need to itemize your deductions on Schedule A of your tax return. This is the form used to report moving expenses.
You’ll also need documentation from your employer showing that you moved for work. And you’ll need to keep records of your pet-related moving expenses.
Final Thought
Pets can be a great addition to your family, and they can also help you save on taxes. If you have an emotional support animal, you may be able to deduct the cost of buying or adopting the animal, as well as the cost of caring for it.
If you use your animal in your business, you may be able to deduct the cost of keeping and caring for the animal. And if you foster animals for a qualified nonprofit organization, you can deduct the cost of caring for them as charitable donations.
So if you’re thinking about getting a pet, remember that they can also help you save on taxes. Be sure to consult with a tax professional to see if your particular situation qualifies.
