Pet Tax

There is such a thing as pet insurance so it would only be natural for one to ask if they can claim their pet as a dependent on their taxes.   

It makes sense.  Our pets are dependent on us, but unfortunately, the IRS distinction for a dependent has to be of the human kind!  In some specific instances, however, your dog or cat can fetch you some pet-related tax breaks.   

For all intent and purpose, your pet is considered a personal expense as far as the IRS is concerned.  Any pet owner can tell you the sacrifices they made to afford care for their furry friend.  Many would sacrifice vacations, and even retirement funds to ensure the health of their pet stays intact.  There are, in fact, a few ways your dog or cat can help pay for themselves.

Individuals that have a physical disability, mental health conditions, or that require a service animal due to hearing or vision impairment can utilize that tax deduction Publication 502.  This covers the expense of purchasing the animal, training fees, vet visits as well as food and grooming to make sure the animal stays in its best health so it can perform its duties. 

Documentation is vital whether you require a service animal or one that performs business duties such as a guard dog, or a cat that controls a rodent issue.  An animal that is considered apart of business requires proper documentation verifying the need for the animal. Keep outstanding records about hours worked is critical.   There is also a tax benefit if your pet is a performer.  A pet that's in commercials, ads, tv shows, or that is an Instagram star, would be reported as self-employed income.  Expenses such as travel to commercial shoots and the preparation before a job like grooming and food can be deducted as a business expense.

If you’re not a full-time pet owner and find yourself fostering pets if the organization you foster for is an IRS qualified 501(c)(3) nonprofit expenses, supplies, travel can be deducted.  If you provide care and service to a foster animal, it is considered a charitable contribution.

Your pet can benefit you at tax time if you know the rules. Familiarize yourself thoroughly with the help of Lewis CPA.  We're happy to help you find the tax breaks in the fur baby that takes care of you.