This coming week we Americans will face the annual tax deadline, April 15th, when you either have to file your annual tax return, or file an extension. If you are still working on your return, you may be looking for any deductions you can find to help reduce the amount you owe. More than once I have looked at my pets and thought, I wonder if I could claim my furry child as a tax deduction, but sadly that is not the case - unless your pet falls into one of very few categories.
If your pet is a service animal trained to help you with a medical condition, some costs related to the training and care of your furry friend might qualify as medical deductions. However, the deductible portion is only the amount in excess of 7.5% of your adjusted gross income, and you must itemize deductions on your return. Keep in mind that the definition of a service animal is one trained to assist a human that has a disability; and the animal must be trained to perform specific tasks related to that disability; if it provides only companionship or comfort, it does not quality as a service animal.
The other deduction you may take related to pets is if you foster pets through a qualified 501(c)(3) nonprofit organization. In that case, you may deduct out-of-pocket expenses for which you are not reimbursed; but, you should receive written confirmation of your fostering arrangement, and keep all receipts related to your care of the animals. In addition, you must itemize deductions on your tax return and claim the expenses as a charitable contribution.
The best way to make sure your pet-related expenses are properly deducted is to seek the advice of a qualified tax professional. And even if your pet may not be able to lower your tax bill, the benefit you get from having a faithful furry friend is priceless, when you’re speaking of pets.
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