Ever wondered if you could get some tax savings from being a pet owner? As much as you consider your furry friends like family, the IRS says you can’t claim them as dependents.
While there isn’t any official pet rescue tax deduction, there could still be tax deductions you can take. In fact, there are ways you can get some savings, provided you meet the IRS criteria. Curious? We’ve broken down the potential financial benefits of being a foster parent, in addition to the love and joy you receive from saving a life!
Fostering a Dog: Doing Good for Others and Self
Maybe you and your family want to open up your hearts and become a foster pet parent. If you work with a qualified 501(c)(3) organization, you may be able to deduct your expenses as a charitable contribution.
If you volunteer for a qualified charity, your veterinarian visits, pet supplies, food, and other pet-related expenses could qualify. If any trips you make are for the organization, make sure to keep track of your mileage. Each mile driven is entitled to a deduction of $.14 per mile as a charitable contribution. You cannot take a tax deduction for any expenses that the nonprofit organization reimburses you for.
As always, make sure you keep careful records and receipts of your expenses.
Service Animals
Another situation where you may be able to deduct expenses is if your furry friend is a service animal. In order to be considered a service animal, it must be trained to do work or perform tasks for an individual with a disability, like a seeing-eye dog.
Working Pets
If you have a guard dog to protect your business, you may be able to claim some of the costs as a business expense. Also, you may be able to deduct expenses such as training and veterinarian care. If your furbaby is making money as an influencer, it could be viewed by the IRS as your own self-employed business if your pet is generating income for you.
While there’s no pet tax credit or deduction, you may have some legitimate tax deductions in relation to adopting or caring for a pet when you file your taxes. If not, just know that your pet appreciates the love and care you show them, even if they don’t say it.
No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed.