Service Animals Are Tax-Deductible Medical Expenses
If your pet is a certified service animal trained to assist with a diagnosed medical condition, it may qualify as a medical expense under IRS rules. This includes guide dogs for the visually impaired, hearing dogs, or animals trained to alert owners to seizures. The IRS pet rules allow deductions for the cost of buying, training, and maintaining a service animal, including vet bills, food, and grooming — as long as the expenses are directly related to the animal’s service. These costs must exceed 7.5% of your adjusted gross income (AGI) to be deductible under medical expenses. Keep detailed records and obtain a doctor’s note stating the necessity of the animal for your condition. For 2025, this remains one of the clearest ways to benefit from pet tax deductions 2025. Source: Figo Pet Insurance
Emotional Support Animals Don’t Usually Qualify
Unlike service animals, emotional support animals (ESAs) don’t automatically qualify for tax deductions. Although they offer vital emotional benefits to many, the IRS pet rules are strict about what counts as a deductible medical expense. For an ESA to potentially be deductible, it must be deemed medically necessary by a licensed mental health professional, and you’ll need a letter stating the animal’s role in treatment. Even then, it’s a gray area. The IRS generally doesn’t accept ESAs as meeting the same standards as service animals unless you’re under consistent, documented treatment. While claiming pets on taxes in this situation is possible, it’s not guaranteed — and it’s often challenged in audits. If you’re banking on pet tax deductions 2025 for your support animal, proceed with caution and always keep solid documentation. Here’s what the American Kennel Club suggests.
Pets That Work for Your Business Could Be Deductible
Does your pet protect your business property or serve as part of your brand? If so, you may be able to claim pet-related expenses as a business deduction. For example, a dog that guards a warehouse or a cat that controls pests in a storage facility might qualify. Social media influencers who feature their pets in monetized content could also argue that their animals are part of their business. In these scenarios, the IRS pet rules allow deductions related to food, vet care, and training, but only in proportion to the business use. This means you can’t deduct 100% of costs unless your pet is strictly a working animal. According to Pawlicy Advisor, claiming pets on taxes as a business expense is becoming more common, but you’ll need to prove the connection clearly with receipts, time logs, or content use examples.
Moving Costs for Pets No Longer Deductible
In the past, you could deduct pet relocation expenses as part of a job-related move, but under the Tax Cuts and Jobs Act, that deduction was suspended through 2025 for most taxpayers. Unless you’re an active-duty member of the Armed Forces moving due to a military order, claiming pets on taxes for relocation isn’t allowed. Even then, only specific pet transport costs tied to the move — like airfare or ground shipping — may qualify. General moving expenses like pet boarding or extra supplies don’t count. This is important to note for pet owners hoping for pet tax deductions 2025 when it comes to pet relocation, especially if a job transfer or new opportunity requires a big move. Source: PetRelocation.com
Foster Pet Parents May Be Eligible for Charitable Deductions
If you foster animals for a qualified nonprofit organization, you might qualify for pet tax deductions 2025. The IRS pet rules allow taxpayers to deduct unreimbursed expenses incurred while fostering pets for an IRS-recognized 501(c)(3) organization. Eligible costs include pet food, supplies, grooming, and veterinary care — but not the value of your time or general household costs like utilities. To qualify, the organization must issue a written acknowledgment of your foster arrangement, especially if your expenses exceed $250. You’ll need receipts for all expenditures and proof that the animal was under your care as part of the nonprofit’s program. While you can’t claim pets on taxes if you adopted them permanently, fostering offers a compassionate way to make a difference and possibly earn a tax break in the process.
Pet Trusts Don’t Offer Immediate Deductions
While planning for your pet’s future through a legal trust is thoughtful, it doesn’t lead to tax breaks while you’re alive. A pet trust is a legal arrangement that allocates funds for your animal’s care if you become incapacitated or pass away. These funds are set aside from your estate, and while they may have implications for estate planning or inheritance taxes, you can’t claim pets on taxes in the year you set it up. However, the trustee managing the pet trust may have reporting obligations, and the person receiving funds to care for the pet could owe income taxes. So, while it’s smart planning, it won’t help with your pet tax deductions 2025. Still, it’s worth discussing with an estate planner if you’re serious about ensuring long-term care for your furry loved one.
