Can I Claim My Pet On My Taxes? The New Loophole Pet Owners Love!
Any pet owner will tell you that being a guardian of a dog, cat, bird, fish, rodent—basically any living thing is a huge responsibility, and it’s not cheap! In fact, these lovable little creatures arguably take just as much energy and effort as a child. So, when it comes to taxes, you’d think that you could write your pet off as a dependent.
But you can’t.
If that were the case, everyone might conveniently have a pet around the beginning of the year!
You just can’t. That’s the law.
The type of things that you can write off is more like a necessity for living or it somehow helps the environment or community. And while children are looked at as our future, they’re legally claimed as a dependent. The Internal Revenue Service (IRS) sees pets as a luxury. Therefore, you cannot claim them as a dependent.
What About Medical Expenses?
A good rule to remember is that if you can’t claim your pet as a dependent, then any other expense—including medical isn’t taxable either.
However, there is a loophole for pet medical expenses!
If you need a dog to serve the purpose of guiding or guarding you, then you can write the expenses related to this purpose off. Some people need a dog to guide and/or protect them due to being visually or hearing impaired. So this would include not only the medical expenses, but also everything needed to train and keep the dog healthy.
Do Cats Get a Loophole?
Of course! We can’t leave the cats out! You can reportedly write the expense of your feline friend off if he or she serves the purpose of contributing to pest control. If you can prove to the IRS that your kitty is help keeping your business property free of mice or any other kind of rodents, then you’ve got yourself a tax write-off!
Since the IRS allows you to write off hobby expenses, pet show
owners can certainly take advantage of this tax break. What this means for show owners is that you’ll be able to write off the expenses related to keeping the pet up for the show. If you’re fortunate to win a cash prize over $500, then you should be allotted a 1099 Form that will account for the total amount of earnings from that particular organization. This will count as part of your gross income. The expenses of this particular hobby will be deducted and this will be your adjusted gross income.
Deduct the Moving Expenses of Your Pet
Depending on how far you have to relocate from work, you’ll be able to write off the expense of moving your pet. Your new home has to be a certain distance from your old home. In order to take advantage of this deduction, you’ll also need to be a full-time employee.