Pet Tax Deductions 2023 |Learn How to Write Off

Pets are fun, pets are amazing and pets bring a smile to our faces but pets are also expensive. Did you know the average pet owner pays about $140 per month or $1,680 each year for their pet? That’s why it makes sense to cut costs wherever you can, especially if there’s a way to write off your pets as tax deductions. How is that possible? Here are five ways to write off your pets as tax deductions in 2023:

1. If they’re service animals.
2. If they help in the family business.
3. If they become famous.
4. If you foster pets.
5. If you have moving expenses related to pets.

Can You Write Off Pets as Tax Deductions?

Your pet may need special care if he or she suffers from a significant health problem. By taking tax deductions for pet-related expenses, you may be able to reduce your expenses in raising pets. Pets are not eligible to be claimed as dependents, but if they play an important role in your life, some expenses may be deductible.

For information on tax filing and all the answers to your IRS questions, click here.

You can claim a deduction only if you can provide proof of the animal’s classification and have the proof you need. Unless you itemize your taxes, you cannot get any of the five animal-related deductions listed below. If you have more deductible expenses than the standard deduction amount, that might make sense if your total deductible expenses are more than $12,950 for single filers, $25,900 for joint filers, and 19,400 for heads of household. Here are five conditions where you can write off your pets as taxes this year.

If They Are Service Animals

It could be an advantage to have a guide dog or service animal for assistance if you are blind, deaf, use a wheelchair, suffer from post-traumatic stress disorder (PTSD) or have one of several other disabilities.

You may be able to deduct expenses related to food, training, grooming and veterinary care as tax deductions for pets. If your animal is helping you in some medical capacity, you should be able to deduct any expenses that exceed 7.5% of your adjusted gross income. However, having a pet that provides you with comfort isn’t enough for you. Meet all criteria in order for you to qualify.

For the animal to be used as a treatment for a diagnosed illness or condition, it must be trained or certified. Depending on the medical necessity, you might also need a doctor’s note.

If They Help in the Family Business

Depending on the circumstances, you might be able to deduct expenses such as food and vet care as tax deductions if your pets work for your family business. This includes opportunities where they can serve as a guard dog or a pest-control cat.

It is important that you prove that the animal is ordinary and essential to the operations of your business. In addition, size and breed are important factors in guard dog approval, regardless of how fierce your Chihuahua may be.

Record the time your pet spends at your business and any expenses you incur during that time in order to qualify for these deductions.

If They Become Famous

In the case of pet-related hobbies such as dog shows, you can no longer deduct them, but if it has become a business suddenly, then you can deduct them.

There’s a good chance those cute cat videos you posted on a monetized YouTube channel have taken off or maybe your pet has become a big advertising star. Keeping track of pet-related expenses and income is just as important as keeping track of your own.

If You Foster Pets

If you donate money to a qualified nonprofit, the funds you spend on foster animals will count as a charitable donation. Food and medical expenses for pets you foster are usually by animal shelters. However, anything you don’t get reimbursed for might be eligible as well. Keeping receipts and tracking your expenses is important so you can write them off as tax deductions related to pets.

Tolls, meals, and parking costs as well as mileage costs at the current $0.14 per mile rate, are also deductible if you volunteer at an animal shelter as a transport driver.

If You Have Moving Expenses Related to Pets

The IRS used to allow deduction of your qualified for moving expenses, even for your pets, if you had to move for work. From the 2017 tax year onwards, everyone except military members gets an exclusion from deductions.

However, it doesn’t mean you’re completely out of luck. There are still some states, including California, that allow you to deduct moving expenses from your state taxes if you meet certain requirements. For more information, contact your state’s Department of Health.

File Taxes for FREE

Ensure you are keeping track of all your expenses when it comes to taking care of your pets. You never know when an opportunity will present itself where you can write off expenses for pets as tax deductions. Meanwhile, Line offers you the chance to file your Federal and State taxes for absolutely FREE.