When Are Pet Expenses Tax-Deductible?

When you’re trying to score a break at tax time, maxing out your deductions can potentially lower your bill or result in a bigger tax return. Apart from the standard write-offs for things like mortgage interest or business travel, you may be able to claim more unusual expenses, including the cost of taking care of a pet. The IRS has certain rules about when pet expenses are tax-deductible, so if you’ve got some furry friends at home, here are a few scenarios where you might benefit.

Consider working with a financial advisor as you work on a budget, whether that includes a pet or not.

You Require a Pet for Medical Reasons

Service animals can take many different forms, including dogs, cats and even miniature ponies. If you’re required to have a guide, service or therapy animal because you have a diagnosed medical condition, such as blindness, epilepsy or post-traumatic stress disorder, you may be able to deduct the cost of its care as a medical expense on your taxes.

In order to meet the IRS standards your pet must be certified and trained as a service animal. The types of costs you can deduct include grooming, food, veterinary care and training. You might also be able to claim vet bills on taxes for pets you foster, provided that the nonprofit organization hasn’t reimbursed you and the organization is registered with the IRS.

Find out now: How much do I need to save for retirement?

You Use a Guard Dog for Your Business

While you can’t technically put a dog on the payroll, you may still be able to deduct the cost of its care as a business expense if it’s used primarily to guard your premises and inventory. Context is key here. The dog needs to be an appropriate historical breed (e.g. a German Shepherd not a Chihuahua) and you must be able to demonstrate a legitimate need and working hours for the dog.

For example, a guard dog for a junkyard won’t flag the IRS, but claiming a guard dog for a suite in an office building might. Normal expenses such as food and veterinary care can be deducted as part of your standard Schedule C deductions (Line 22 maintenance and supplies), and you can claim the purchase cost of the guard dog as a depreciable asset under section 179 rules.

You Foster Pets in Your Home

Volunteering with a service animal agency or pet rescue organization is a great way to give back, and it can also pay off at tax time. If you foster pets, either in your home or on your property, you may be eligible to claim the deduction for unreimbursed expenses. That covers food, shelter, veterinary bills, grooming costs, litter and bedding materials. These expenses would qualify as charitable donations, which are deductible up to 50 percent of your adjusted gross income. However, you must be working with a qualified 501(c)(3) organization in order to claim those expenses as charitable deductions on your return.

You’re a Professional Breeder

If breeding and selling dogs, cats or other animals is your primary occupation, there’s good news: not only can you deduct food, medical bills and boarding costs, but you can also write off any other ordinary and necessary expenses that qualify as Schedule C deductions. This includes things like advertising, costs relating to the business use of your home, and travel expenses.

You will need to demonstrate you are a legit for profit business and not just a hobbyist, so record keeping is essential . If you breed animals as a hobby, you only qualify for deductions if your expenses exceed 2 percent of your adjusted gross income and you itemize.

You’re a Law Enforcement Dog Handler

Some of the cost that goes along with maintaining a police dog may also qualify for a tax deduction if you’re not reimbursed for these expenses through your job. If the dog lives in your home when not on-duty and you’re responsible for buying its food or purchasing a kennel, you can generally claim them as a job-related expense. However, similar to a hobbyist breeder, the IRS rules on miscellaneous deductions state you can’t claim any of these expenses unless they total more than 2% of your AGI.

Main Rule for Cutting Your Tax Bill

The most important rule for reducing your tax bill through pet-related deductions is to keep thorough records of every business expense. The IRS requires documentation to support any deduction you claim, including those related to animal care. If you’re deducting costs for a service animal, foster pet care, or a pet used for business purposes, you must be able to show proof of what was spent and why it qualifies.

This means saving receipts, invoices, mileage logs, and written agreements that connect your expenses to a qualified purpose. For example, if you’re fostering animals through a nonprofit organization, keep a copy of the organization’s 501(c)(3) status and correspondence showing your volunteer arrangement. If your pet performs in advertising or helps protect a business property, retain contracts, photos, or other evidence showing the animal’s business role.

Without documentation, even legitimate deductions may be disallowed during an IRS audit. The agency doesn’t accept verbal explanations without paperwork, and penalties can apply if unsubstantiated deductions are flagged. Consistent, organized recordkeeping can help you confidently claim eligible write-offs and avoid unexpected tax issues later on.

When Pet Expenses Are Not Deductible

While there are some narrow exceptions, most pet owners cannot deduct everyday pet costs on their tax returns. The IRS treats typical pet ownership expenses as personal and nondeductible. Here are some common examples that do not qualify:

Routine pet care (e.g., food, grooming, vet bills for your household pet)
Pet insurance premiums for a family dog or cat
Boarding or pet-sitting fees when you travel for non-business reasons
Pet adoption or purchase costs
Training classes for behavior or obedience unless tied to a business or medical requirement
Emotional support animals unless legally classified as service animals with medical documentation

Unless your pet is directly tied to a qualifying medical condition, business use, or charitable activity, you generally cannot write off the expense. This section helps clarify the limits and avoids confusion about what qualifies under IRS rules.

Bottom Line

A pet owner forming a heart with her hands around her dog's head.

Contrary to what many people may think, it is very possible to claim deductions for your pet-related expenses. Just be sure to keep careful and complete records of what you spend and why you spent it. Was it for a work-related matter? Or was it for non-compensated activity like fostering pets?

Tips on Taxes

A financial advisor can offer valuable insight and guidance as you explore ways to reduce your taxes, including by deducting pet-related expenses. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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