From food costs to vet bills, the cost of pet ownership can really add up. So it’s not surprising that one of the more common questions tax preparers are asked by clients is “How do I write off expenses related to my pet?” Unfortunately, this is usually not possible. However, there are some exceptions that allow pet related expenses to be claimed as tax deductions.
Medical Expenses
Expenses related to specially trained animals can qualify as eligible medical expenses. To qualify, the specially trained Service Animal must be helping with certain medical conditions including:
- Blindness;
- Profoundly deafness;
- A severe and prolonged physical impairment that markedly restricts the use of your arms or legs;
- Severe autism or epilepsy; or
- Severe diabetes (for expenses incurred after 2013).
If your pet has received specialized training and your medical condition is listed above, you may be entitled to claim a wide range of expenses. Other than the initial cost of the animal, you may also claim the cost of care and maintenance which includes the cost of food and veterinary care. If you travelled to a school or other training institution to learn how to handle your service animal, your travel costs, including lodging and meals, are also considered to be eligible medical expenses.
Farm Animals
If farming is your business, the cost of livestock is generally considered to be an eligible business expense. I realize that pets and livestock are not usually considered to be in the same category but, coming from a farming family, I can tell you that sometimes an orphaned calf or runt-of-the-litter pig can turn into a pet quickly. Special consideration must be taken when making this differentiation for tax purposes. Much like the difference between a working farm and a hobby farm is the expectation of profit, the difference between livestock and pets comes down to the business of farming. If that particular piglet is purchased strictly for personal reasons and you have no intention of selling him for either meat or breeding purposes, he’s likely considered to be a pet. Therefore, expenses related to the little piggy would not be tax deductible.
Court cases have arisen over the cost to maintain cats and dogs for the purpose of protecting the farm. It has been successfully argued that costs relating to cats who keep rats, mice, and other vermin away from grain silos and berry fields are acceptable farming expenses. Similarly, the cost of trained herding dogs and even donkeys whose main purpose is to protect sheep can be seen as eligible farming expenses. These deductions are not automatic and may be the subject of scrutiny by the Canada Revenue Agency.
As you can see, in most cases, even though your pets are technically dependent upon you, the cost of owning a pet does not translate to a tax deduction. While your pet may not be a deduction, TurboTax can help you get your maximum refund. Our Standard, Premier and Self-Employed versions automatically search more than 400 credits so you don’t miss a deduction. Or, you can always start your return in TurboTax Free, and if you feel the need for additional assistance, you can upgrade to any of our paid editions or get live help from an expert with our Assist & Review or Full Service.* But don’t worry, while using the online version of the software when you choose to upgrade, your information is instantly carried over so you can pick up right where you left off.
*TurboTax Live™ Full Service is not available in Quebec.