If you rely on a service animal because of a physical or mental disability, some of the costs of purchasing, training, and caring for that animal may qualify as a medical expense deduction.
The IRS treats qualifying service animals as more than pets. They are considered part of a medical treatment plan when they assist a person with a disability. If you itemize deductions on Schedule A, you may be able to deduct eligible service animal expenses as medical expenses.
What Service Animal Expenses Can Be Deducted?
You may be able to include expenses related to buying, training, and maintaining a qualified service animal.
Examples include:
- The cost of purchasing a service animal
- Training expenses
- Veterinary care and medications
- Food
- Grooming
- Harnesses, vests, tags, and other necessary equipment
The IRS allows deductions for costs that help maintain the health and ability of the animal to perform its duties.
How Do I Show That My Animal Qualifies as a Service Animal?
The IRS may require evidence that the animal is necessary to help treat or manage a medical condition. Helpful documentation can include:
- A clear connection between your disability and the services the animal provides.
- Written documentation from a doctor, therapist, or other qualified healthcare provider recommending the service animal.
- Evidence that service animals are commonly used to assist individuals with your condition.
- Records showing the animal helps you manage or improve your condition.
- Documentation showing the animal was obtained to assist with a medical need rather than as a household pet.
Keeping medical records, training certificates, and receipts can make it easier to support your deduction if questions arise later.
Do I Have to Itemize My Deductions?
Yes. Service animal expenses are claimed as medical expenses on Schedule A (Form 1040), so you must itemize your deductions instead of taking the standard deduction.
Keep in mind that you can deduct only the portion of your total unreimbursed medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI).
Example
Let's say your AGI is $60,000. Seven and a half percent of that amount is $4,500. If your total qualifying medical expenses, including service animal costs, equal $7,000, you may be able to deduct $2,500 ($7,000 minus $4,500).
What Records Should I Keep?
Save documentation for all expenses you plan to claim, including:
- Purchase contracts
- Training invoices
- Veterinary bills
- Grooming receipts
- Food purchases
- Medical documentation supporting the need for the service animal
Good records can help support your deduction if the IRS requests additional information.
How Do I Enter Service Animal Expenses in the Program?
- Go to the Federal section.
- Select Deductions - Select my forms
- Choose Itemized Deductions.
- Select Medical, Dental, and Vision Expenses.
- Enter the expenses under Other Medical Expenses.
Important Note
Not all assistance animals qualify for a medical expense deduction. The expenses must be directly connected to a service animal that assists with a qualifying disability and meets IRS requirements. If you're unsure whether your expenses qualify, review IRS Publication 502.