They may not sit down at the dinner table with us or send letters from summer camp, but most pet owners consider their animals to be part of the family. This raises an interesting question. If we can claim expenses for raising children and providing care to other eligible dependents, can we also deduct expenses related to the care and maintenance of our pets? Absolutely, under certain circumstances, says Ann Irons, CPA. Irons, who provides financial planning and preparation of income taxes in Bellingham, MA.

Pet-Related Moving Expenses

Moving expenses must meet three basic requirements to be eligible for deductions. The move must be directly related to either a new job or a transfer to a new location. Expenses must be incurred within a reasonable timeframe of the move itself, and your new residence must be a certain distance from your new job location. According to the IRS, pets fall under the category of household belongings, meaning they may be taxable and therefore eligible for a deduction. For example, if you choose to have your pet shipped to your new residence, you can deduct the expense for doing so. For more about moving expenses, see IRS Publication 521 here.

Expenses Related to Service Animals

Service animals are invaluable companions for those with physical disabilities or impaired vision and/or hearing. All costs incurred in the care and maintenance of service animals, including veterinary bills, food, and grooming, are eligible for deduction by the owner. If you are responsible for training and boarding animals for future service, you can deduct these expenses. First, however, the animal must be declared as a service animal by an authorized agency.

Deductions From the Good of Your Heart

The IRS allows foster pet owners and rescue workers to claim deductions for money spent on food, veterinary care, and bedding/litter for the animals. Note that not all charitable organizations and agencies are approved by the IRS for this purpose. Before you claim these expenses, verify that the entity is eligible. You may also be able to claim certain expenses paid out of pocket and not reimbursed by the agency. You cannot deduct the value of space within your home used to house foster or rescue animals.

Charitable Donations of Property or Money

Donations in the form of property—dog food, for example—or money are eligible when awarded to a tax-exempt charity or shelter. Include the amount of your donation in your itemized deductions. Use fair market value when deducting the cost of donated food, bedding, and other items earmarked for charitable use. Adoption fees cannot be deducted, and you cannot deduct the value of any time spent performing volunteer work at an animal shelter.

As with most money matters, the IRS has very specific requirements regarding the eligibility of pet-related deductions, and these guidelines may change from one tax year to the next. Furthermore, this is not an exhaustive list of available deductions. Before claiming the family dog on your tax return, we recommend meeting with your Bellingham, MA CPA for a full analysis and recommendations.

Questions about eligible expenses? To learn more about tax preparation in Bellingham, MA, or to request an appointment with Ann Irons, CPA, LLC, contact us at 508-966-0700. We welcome individuals and businesses in need of accounting, tax preparation, bookkeeping services, and financial planning in Boston, Milford, Medway, Woonsocket, Bellingham, and the surrounding areas. Tax services are offered to clients nationwide.