If you're a pet owner, you already know that a good part of your money goes for its expenses every year. |
You have to pay for routine veterinary visits all the time, food, treats, and other related expenses.
But you love your pet, so you don't really mind spending so much cash on it.
However, there comes the point where you may be wondering if you can claim your pet on your taxes.
Well, the IRS will not consider pets as dependents, but rather as a personal expense.
Luckily, though, there are some particular situations when your pet can save you some cash, so here is how to claim your pet on your taxes.
Business AnimalsBusiness animals can be security dogs or cats that control rodents at some workplaces.
Therefore, when it comes to a business animal, you have the opportunity to qualify it for deductions, so the expenses associated are covered.
What will be covered is pretty much the food, training related to the job, and veterinary care.
So, when you "hire" animals for specific things in the workplace, you can get coverage for some expenses.
The IRS will accept it but only as long as you have documents to prove that you need the animal and that you have good records.
Service AnimalsService dogs can be beneficial for people with both physical and mental conditions, as they can help guide them or make them feel better.
The cool thing with service animals is that they are tax-deductible per IRS Publication 502.
You can get coverage not only for the pet visits, training fees, grooming fees and food but also for purchasing the animal in the first place.
You can get coverage by getting a letter from your doctor that diagnoses your condition, and where it's specified that it is recommended to use a service animal.
Documents of the dog's training and receipts of the expenses are necessary as well.
Foster AnimalsYou have the chance to foster animals, and if you are doing it for an IRS qualified 501(c)(3) nonprofit organization, some expenses can be deducted.
Alison Flores of The Tax Institute at H&R Block said:
"If you sign up to provide a service to care for a foster animal, and you are contributing the cost of food and care of that animal, then you are kind of considered to be providing a service to a charitable organization, and in limited circumstances, that could be a charity donation."
Animals that Make MoneyIf your pet is a popular figure in TV ads, prints, TV shows, or movies, as well as social media, then it may qualify for tax deductions only if they make you enough money.
It's like a business you're getting income from. As such, the IRS will look at the business expenses associated with it and determine if they can cover expenses.
Final ThoughtsIt's essential to know how to claim your pet on your taxes if you want to be able to deal with the costs associated. Moreover, if you need to cover other things related to animals, such as injuries caused by bites, you can talk to a dog bite attorney and open a case.
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