The information in this article is up to date for tax year 2023 (returns filed in 2024).
There are approximately 500,000 service dogs aiding people with disabilities in the U.S. The typical cost to train a service animal ranges between $15,000 to $30,000 (with another $500/month for care).
Unfortunately, most insurance won’t cover these expenses. But if you have a trained service animal, you may be able to deduct these costs from your tax bill.
Here’s how it works.
Service animals are working animals, not pets.
For tax purposes, the IRS extends the Americans with Disabilities Act (ADA) definition of service animals beyond just dogs as long as the service animal is individually trained to provide assistance to an individual with a disability.
The work or task of a trained service animal must be directly related to the person’s disability.
Some examples of tasks performed by service animals include:
In short, yes. Expenses related to service animals are tax deductible for qualifying taxpayers.
No. Emotional support animals who only provide emotional comfort and support are not considered service animals and do not qualify for tax breaks under the Medical expenses deduction.
To qualify as a service animal for taxes, you must have a qualifying disability under the ADA and be able to demonstrate that the purpose of the animal is to treat or assist with a specific medical need.
You can use documentation like a prescription or diagnosis from your doctor, as well as all related medical receipts and training certifications, if applicable. (These are also necessary for documenting your expenses when you calculate your deduction.)
Service animals legally count as medical equipment, and thus, the costs associated with purchasing, training, and caring for your service animal are considered medical expenses by the IRS.
These expenses can include:
To deduct the costs of your service animal, you must itemize your deductions on Schedule A. Under the medical expenses deduction, you can deduct any qualifying medical expenses over 7.5% of your AGI (adjusted gross income).
Because you can only take this tax break if you itemize, check to make sure your total itemized deductions are higher than the standard deduction. Otherwise, it may make more sense to simply take the standard deduction. For tax year 2023, the standard deduction is $13,850 for single filers and those married filing separately, $27,700 for those married filing jointly, and $20,800 for heads of household.
Get the most out of your tax return this year by filing with ezTaxReturn. We’ll help you calculate your costs and determine which credits and deductions are right for you.
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The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
The information in this article is up to date for tax year 2024 (returns filed…
The information in this article is up to date for tax year 2024 (returns filed…
The information in this article is up to date for tax year 2024 (returns filed…
The information in this article is up to date for tax year 2024 (returns filed…
The information in this article is up to date for tax year 2024 (returns filed…
The information in this article is up to date for tax year 2024 (returns filed…