If you have a trained and certified guide dog or service dog to assist you with visual or auditory impairment or another physical disability, under IRS Publication 502 you are able to deduct expenses related to the cost of buying, training, and maintaining him or her. Be sure to keep your medical records well organized so that you can provide substantive proof if required.
The IRS already allows you to deduct moving costs in certain scenarios, and lucky for relocating pet parents, under IRS Publication 521 this includes expenses related to pets. Moving costs are not itemized, so you can lump pet expenses in with your entire relocation amount. Costs include transporting your pet, extra care needs, or any medical fees associated with the move.
Taking an animal into your care while they await their forever home is a wonderful gift, but it’s not always cheap. Per the results of tax case Van Dusen v. Commissioner, a foster parent can claim any unreimbursed expenses for fostering done for a 501(c)(3) designated not-for-profit animal rescue organization. This includes food, veterinary care, and even utilities for the portion of the home used for the animal’s care. You can also claim 14 cents per mile driven related to the foster animal. Keep good records—you may be asked to show a detailed breakdown of these expenses.
Any donation of funds, goods, or services to a 501(c)(3) animal charity is tax deductible provided that no goods or services were received in return (so the fee you paid to adopt your pet turtle is not deductible, but anything you donated in addition would be). Always ask for a donation receipt, especially if the value of your donation is more than $250. Charitable contributions can be deducted on Form 1040, under Schedule A.
If your pet’s hobby earns you cash (think dog shows, agility events, or social media stardom) then that money becomes taxable income. As such, you can deduct hobby-related expenses (transportation, hotels, cute outfits) on your tax return, provided the total amount exceeds 2% of your adjusted gross income. Again, keep all related documents, just in case. No IRS auditor wants to hear, “My dog ate my receipts….”