Let’s face it, we spend a lot of our hard-earned money on our dogs. Dog ownership is a multi-billion-dollar industry! A single dog costs between $700 and $2,000 a year, depending on the breed. Nonetheless, over 50 million Americans own at least one dog because they’re more than pets—they are emotional anchors that bring joy, stability, and support to their owners, and most dog owners consider them part of the family.
The dog owner sector of spending includes pet food, treats, toys, beds, accessories, veterinary care, grooming, boarding, insurance, training, and a myriad of other pet-related products and services.
Refrigerated fresh food is a growing trend for pet owners who want to focus on high-quality nutrition, and some dogs even eat a better diet than their humans with meals tailored to specific health needs.
And the excessive spending doesn’t stop at food. From designer collars to custom dog beds, dogs are often accessorized and pampered with high end brands such as Gucci or Kate Spade.
Can I Claim My Dog as a Dependent?
Dogs have medical expenses, grooming expenses, and even babysitting expenses. They depend on us for food, healthcare, exercise and love, and we often adjust our schedules to accommodate their specific needs. It’s only natural for pet owners to look for ways to justify the expenses they incur. Naturally, this can lead many to wonder if there’s any way to write off the costs of owning a dog on their taxes. Unfortunately, the short answer is generally no but there are a few specific scenarios where a dog could potentially be deductible.
The IRS considers pets as personal property, so they don’t fall under the category of deductible expenses like business expenses or medical expenses—except in very specific situations. At Adams Accounting Solutions, we can help you unpack the data needed to see if your dog qualifies for a write off.
1. Is Your Dog a Service Animal?
If your dog is a certified service animal that assists you with a medical condition (like a seeing-eye dog for the blind or a therapy dog for emotional support), you may be able to deduct certain costs related to the care and upkeep of the animal. This can include:
- Veterinary bills
- Food and supplies
- Training costs
- Insurance premiums for the dog
To qualify for a deduction, the animal must be specifically trained to assist with a diagnosed medical condition. This means a regular pet dog or an emotional support animal (unless trained to perform specific tasks) wouldn’t typically qualify.
2. Is Your Dog Used for Your Business?
In some cases, if your dog is used for business purposes, there could be deductions. For example, if you run a farm or a security company, and your dog is actively used in your business—such as guarding your property or working as a herding dog on a ranch—the costs related to the dog’s upkeep might be deductible. This includes:
- Dog food
- Veterinary expenses
- Training
- Travel expenses (if the dog is traveling with you for business)
However, keep in mind that the dog must be used primarily for business purposes. If your dog is considered a family pet, you will not be able to write off their expenses.
3. Is Your Dog Used as a Guard Dog?
If you own a business, commercial building or a warehouse and keep a guard dog on your property for security reasons, you may be able to deduct the costs associated with the dog as business expenses such as food, medical care, training, and even a portion of the costs for the dog’s purchase.
4. Are You Moving with Your Dog?
If you’re moving for work, and your dog is a necessary part of your move (like if you are relocating a service dog or a guard dog), you may be able to deduct certain costs associated with transporting your dog. However, the IRS’s rules on moving expenses have changed over the years, and most moving expenses are no longer deduction for most taxpayers.
5. Do You Show Your Dog(s)?
If your show dog is part of a legitimate business—such as professional breeding, training, or competitive showing—owners may be able to deduct related expenses. To qualify, the IRS requires that the dog-related activities be operated as a for-profit business rather than a hobby.
Hobby vs. Business: Understanding IRS Criteria
The IRS has specific guidelines to differentiate between hobbies and businesses. To prove that showing and breeding dogs is a business, owners must demonstrate:
- A genuine effort to make a profit
- Regular and systematic participation in activities related to dog showing or breeding
- Businesslike record-keeping, including financial records, receipts, and contracts
- A history of profitability or a reasonable expectation of profit in the future
If the IRS determines the activity is a hobby, deductions may be limited to the amount of income generated from the hobby, without the ability to claim a loss.
Eligible Deductions for Show Dog Businesses
For those who operate their show dogs as a legitimate business, the following expenses may be deductible:
- Entry Fees: Costs for participating in dog shows, competitions, and events.
- Training and Handling: Fees paid to professional trainers or handlers.
- Grooming and Maintenance: Costs associated with keeping a dog in top show condition, including grooming supplies and veterinary care.
- Travel Expenses: Flights, hotel stays, and mileage incurred while traveling to competitions.
- Advertising and Marketing: Promotional materials, website costs, and stud service advertising.
- Depreciation: If the dog is a breeding investment, depreciation may be applicable.
What About Emotional Support Animals?
While emotional support animals are vital for many individuals, they generally don’t qualify for tax deductions, as they are not considered to be working animals like service dogs. The IRS requires that a service dog’s tasks must be directly related to alleviating a specific medical condition. Unfortunately, the IRS does not offer tax breaks for general emotional support animals unless they are trained to perform tasks (such as alerting you to medical conditions or providing specific help in times of crisis).
Keeping Track of Pet Expenses is Key
If you do qualify for deductions (for example, if you own a service animal or a dog that’s used for business purposes), you’ll need to maintain detailed records of your expenses. Here are some helpful tips to ensure you’re documenting everything properly:
- Keep receipts for veterinary bills, food, training, and supplies.
- Track mileage if your dog is used for business purposes and needs to travel with you.
- Document the nature of the dog’s work if it’s used for business or service purposes. This could include a letter from your doctor or a training certificate for service animals.
Consult a Tax Professional
Tax laws can be complex, and they are subject to change. If you believe that your dog might be eligible for a deduction under one of the scenarios we’ve mentioned, it’s a good idea to consult with us ensure you’re following all applicable guidelines and taking advantage of any deductions that are available to you.
Final Thoughts
While the IRS generally doesn’t allow you to deduct the cost of owning a dog as a personal expense, there are specific situations where you might be able to write off certain costs—such as service animals or dogs, show dogs, or other scenarios where the dog is used for business. Please remember it’s important to keep detailed records.
Give us a call to make sure you’re maximizing your potential dog-related tax deductions.
