Military Finances 101: Can I Claim a Deduction for Fido?
TaxesBy Tonia Peasley, ChFC®, AFC®
As the tax team at C.L. Sheldon & Company prepares for, what we like to call, “Tax Season, Round Two”, I thought maybe I would share a little information about dependents. So, I used ChatGPT to ask this question:
“Is it true that you can file your pet on taxes as a dependent and how do you do that?”
Chat GPT response:
“That is mostly an internet myth. The “mostly” intrigued me enough, so I read on…
- You cannot claim your pet as a dependent on your federal income tax return. The IRS defines dependents as qualifying children or qualifying relatives who meet specific requirements. A dog or cat does not qualify.
- To claim an individual as a dependent, that individual would need a Social Security number. The Social Security Administration requires a birth certificate and proof of age to acquire a birth certificate; this excludes pets since birth certificates are only issued for human beings. There are times where a statement of birth is provided by breeders, or a pet registration certificate, but these are not birth certificates. These are only issued to human beings.
I did some research on my own and here is where the “mostly” part comes in and since the US tax code can be quite complicated (and why you may need a professional to help you out), there may be certain cases where you can deduct expenses for an animal.
- Service animals are necessary for those who own them. They are not considered to be a “pet”, since they provide a service and have a job. Generally, you need to prove you need the animal. A prescription from a doctor will suffice. The cost of purchasing the animal, veterinary costs, training, food, and grooming can usually be deducted as a medical expense. These costs go toward the “you must spend more than 7.5% of your income” for the medical expenses to count toward deductions.
- Some animals have jobs. Pet actors and show animals have a job. The only way to deduct expenses for a pet that has an income is for the taxpayer to claim they have self-employment income and the pet takes part in earning this income. The taxpayer would need to itemize expenses, so keeping records of expenses and keeping receipts for these expenses is very important.
- Other animals that may qualify. For instance, K9 handlers in Law Enforcement can usually deduct their dog’s supplies from their taxes, assuming the dog lives with them after work.
Not all pets that have a job can automatically have expenses deducted. For instance, a taxpayer might try to deduct the “job” a guard dog performs. If the guard dog is a necessity for you or your business, say a guard dog protecting a junkyard, then yes, their expenses could be deducted. However, a guard dog you take to work at a cubicle in an office building, or if the dog were a teacup toy poodle, it would be hard to prove the dog is necessary.
Military Finances are Different
Pets are pretty much the same for civilians and military members. That isn't always the case. Active and retired military members have unique financial issues and benefits. If you'd like to see how we work with active and retired Senior Military Officers and NCOs, use the button below to schedule a free initial consultation.
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