Can I Claim my Dog on my Taxes?

Tax professionals get asked this question more often than you might think. Pet owners spent $15 billion on veterinary bills in 2014, so it’s no wonder the question comes up at the tax desk. This might have you envisioning a spoiled poodle in a designer sweater, munching expensive dog treats all day, but many times when a tax preparer is asked about deducting pet expenses, it’s followed by a story about a costly surgery the animal had the previous year.

Is it possible to claim deductions related to pets? Surprisingly, sometimes the answer is yes.

• Service animals According to the IRS, you can include in medical expenses 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.
• New home If you’re relocating and can claim moving expenses, you can deduct the cost of transporting your pets to your new location. 
• Volunteering  If you volunteer at an animal shelter or rescue group and offer your assistance in the form of fostering abandoned animals, any unreimbursed expenses can be deducted.
• Pet employees  If you’ve put your animal to work for your business, for example, in the capacity of a guard dog, you can deduct certain costs related to your pet. 

But what about the average Joe with the average Fido? Can he claim his dog? The answer is usually no. Unfortunately, the IRS sees pets as personal property, and only persons get the personal exemption. 

Be sure to contact your tax professional for more information. Time is running out! Have you filed your return yet?