Expensing A Service Dog (Tax Season)

We always suggest to speak to your personal Tax Advisor as everyone's situation is different

 On Consumer Report they say

It look like you'd fill out a Schedule A on form 1040 but on Tax Slayer 

Since you'll need All receipts, we suggest making a virtual folder like on Google Drive, and every time you spend on your dog, take a picture of the receipt, and just upload it. That way come tax time it's all in one place.

So if it is a medical expense, it is even more difficult now than before to take advantage of the deduction. You have to be able to itemize, and even then your medical expenses have to exceed 10% of your adjusted gross income. So it is very unlikely that the normal person could take advantage of those deductions

At a glance:

• Service animals can qualify for tax deductions if they help you with a specific disability or impairment.
• Emotional support animals that provide comfort but lack specific training typically do not qualify for a tax deduction.
• You can deduct food expenses, veterinary care, and more if your pet qualifies.

Do service dogs qualify for a tax deduction?

Service animals, like guide dogs, can be invaluable for people with specific disabilities. These animals are crucial in alerting their owners to potential health episodes, guiding them, or providing emotional support to those suffering from post-traumatic stress disorder (PTSD).

While your fur baby may not qualify as your dependent, you might be eligible for a tax deduction if you need a service dog or another animal to help you navigate daily life. Let’s look at some specifics.

What is a service animal according to the ADA and IRS?

The Americans with Disabilities Act (ADA) defines service animals as dogs “individually trained to do work or perform tasks for an individual with a disability.” This can include tasks such as:

• Guiding people who are blind.
• Alerting individuals who are deaf.
• Pulling a wheelchair.
• Alerting and protecting a person during a seizure.
• Calming an individual with PTSD during an anxiety attack or panic attack.

Service animals are not considered pets, but working animals, and they are allowed where pets are typically prohibited. According to the IRS, if you have a service animal “primarily for medical care to alleviate a mental defect or illness” and can establish that your animal companion qualifies as a treatment for your medical condition, you could claim certain pet-related expenses on your taxes.

Can emotional support animals qualify for a tax write-off?

Emotional support animals (ESAs) who solely provide comfort or emotional support are generally considered pets and do not qualify as service animals, meaning you cannot claim an expense deduction for them. A service animal must be specially trained to perform a specific job or task to help you cope with your condition. If your pet soothes your anxiety by simply being near you, it likely does not qualify as a service animal.

How do you prove your pet is actually a service animal for a tax deduction?

The IRS has specific guidelines for pet owners to help you determine if your pet qualifies as a service animal. At the very least, you should be able to provide written documentation of your need for a service animal from a licensed health professional.

In general, here’s what the IRS looks for:

• You have a diagnosed medical condition. If a physician diagnosed you with a medical condition and recommended an animal for treatment or mitigation, then the animal likely qualify as a service animal. This can be true of a guide dog to help with your blindness or an animal that alerts you that a seizure is imminent. Always cover your bases and get your physician’s recommendation in writing — the IRS loves documentation.
• Links between the treatment and the illness. It will help your case if there is an established history of others with your condition using pets for similar treatments. For example, if you can point to a published study praising squirrels as a pocket-sized alert for low blood sugar, the IRS is more likely to take your request seriously. It’s a good idea to look for any connections that unite your underlying medical issue with your decision to get a service animal and have them ready to back up your claim in case the IRS asks for documentation.
• Effectiveness of the treatment. Have you seen improvement or relief from the condition you’ve been treating since getting a service animal? Any records detailing this improvement can help bolster your case. Say, for example, you’ve kept a journal documenting your physical therapy progress and how the animal has played a pivotal supporting role in your mobility journey. That can be used to prove the effectiveness of treatment.
• Proximity in time to the onset or recurrence of a disease. After reading this far, you may think, “I’ve had my cat since childhood, and she helps ease my anxiety, so of course she counts as a service animal, right?” Here’s the thing — treatment is typically a response to a problem. The IRS is more likely to consider your pet a service animal if you developed a condition or were injured and then acquired the service animal to help you cope. This connects the situation with the treatment and is easier to prove.

What pet expenses are tax-deductible?

If the IRS agrees that your pet qualifies as a service animal, congratulations! You can write off many of your pet’s expenses, including:

• Food
• Grooming
• Training
• The cost of buying the animal
• Vet bills and medical care
• Boarding
• Supplies like leashes, vests, or harnesses
• Other miscellaneous costs

How do I write off my service animal expenses when filing?

To deduct costs associated with a service pet, you must itemize your deductions, which means turning down the standard deduction. So, deducting your service animal expenses only makes sense if your total itemized deductions are greater than the standard deduction. For tax year 2024, the standard deduction is $14,600 for single filers ($29,200 for those married filing jointly).

Don’t forget to review your total medical costs. If you have a diagnosed condition that warrants a service animal, you may have other medical expenses to deduct besides your service pet. To deduct medical expenses from your taxes, they must exceed 7.5% of your adjusted gross income (AGI). Your AGI is your gross income minus any adjustments, like IRA contributions or student loan interest you’ve paid. Your AGI will never be greater than your gross income.

Service pets fall under medical expenses, so you’ll list them on Schedule A on Form 1040.

Making the most of your tax deductions with TaxAct

TaxAct® can help you navigate the complexities of your tax return and determine which tax deductions you qualify to claim. Our user-friendly tax preparation software can help you claim your service animal-related expenses without hassle. We’ll guide you through the process and help you report any necessary expenses.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

Links

Federal Law Links

• Access a summary publication called Revised ADA Requirements for Service Animals from the U.S. Department of Justice's ADA.gov website.
• Access the complete 2010 Title II regulations governing Nondiscrimination on the Basis of Disability in State and Local Government Services from the ADA.gov website.
• Access the complete 2010 Title III regulations governing Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities from the ADA.gov website.
• Frequently Asked Questions about Service Animals and the ADA. 

Florida Law

• If you are denied access or encounter an issue with your service animal under Florida law, please contact us.

• Florida Statute Chapter 413.08 - Rights of an individual with a disability; use of a service animal; discrimination in public employment or housing accommodations; penalties from the Online Sunshine website.
• Florida Statute Chapter 413.081 - Interference with or injury to a service animal; penalties; restitution laws from the Online Sunshine website.

Schools

• Access the Florida Department of Education's 2010 Memo and Guidance on the Use of Service Animals by Students with Disabilities from the Exceptional Education and Student Services Publications webpage.

Businesses

• Access the U.S. Department of Justice ADA Update: A Primer for Small Business and Service Animals 
• Access the U.S. Department of Justice’s ADA Requirements on Service Animals 

Other Resources

• Service Animals and Emotional Support Animals by the ADA National Network
• Pet Partners website (formerly known as the Delta Society).
• Advocates for Service Animal Partners has a 24/7 toll-free hotline. If you are experiencing an active access issue and need urgent assistance, please call the ASAP advocacy hotline 855-ASAP211 (855-272-7211)