Is Pet Insurance Tax Deductible? A Detailed Guide

Is Pet Insurance Tax Deductible

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Regarding pet insurance, tax deductibles are only allowed on specific occasions. It’s widely known that the IRS does not support owners claiming their pets as dependents. Humans can get deductibles on medical expenses; however, animals are not.

Pet insurance companies seem to share more with car insurance rather than humans, with tax deductibles available only if the animal is a service or a guide dog.

There is a possibility of veterinary, pet supply, training, and grooming coverage, but you’ll have to know whether you’re eligible to apply for tax pet deductions on your insurance policy.

Is Pet Insurance Tax Deductible?

Although owners consider pets part of the family, tax deductions on pet expenses, even with insurance, are not deductible. However, there’s one exception – humans with a handicap owning a service dog can get their insurance tax deducted.

If you can prove that the animal you own provides service to you – you will be allowed access to certain tax deductions on medical bills.

Usually, they cover expenses like purchasing, training, and maintenance of the service animal.

Therapy animals are excluded from this rule. Owning a certified service puppy is lucky on its own, but deductions can also fall on the following cost:

  • Purchase 
  • Training 
  • Grooming 
  • Maintenance 
  • Veterinary Checkups 

The same deductions can also apply to foster dogs and business pets, like a guard dog of a warehouse.

What is Pet Tax Return?

Tax returns related to pet expenses can be applied in certain situations. The deductions are only given to owners who have either: 

  • A service dog (for the blind or hearing-impaired) 
  • A business dog (a dog that guards an enterprise) 
  • Foster dogs (applied for rescues) 

If your dog fulfills any of the above-mentioned criteria, you can get a tax deduction on your expenses like food necessities, supplies, grooming, etc.

Are Pet Adoption Fees Tax Deductible?

If you’ve just adopted a pet from your local shelter, you should know that there is no tax deduction on adoption fees.

However, if there is an additional unrelated donation, that would fall under the terms as acceptable for a deduction.

This includes water, food, transportation, and veterinary bills.

Pet Insurance Deductible Explained

Before we get into a more detailed insight into all the possible pet insurance expenses that you can get a tax deduction on – you should know who they apply to:

  • Tax deductions for service animals
  • Tax deduction for worker animals 
  • Tax deduction for fostered animals 

Service animal Tax Deductions

If you own a service animal, you may get access to the Medical Expense Deduction. To receive it, your medical cost over the year must surpass 7.5% of your income. 

Most often, adequate owners for this deduction include people with hearing impairments or blindness, which rely directly on their guide dog. The deduction can be claimed due to all-day training and animal care.

A group that also falls into this category is people who struggle with PTSD. Veterans are allowed to claim tax deductions on their pet insurance policy if it performs certain services for them. 

Pet owners need to prove that the animals help with either a physical or mental condition to use this advantage. 

Working Animals Tax Deductions

Owners of large enterprises can qualify for a tax deduction if they prove the animal provides a service to the business. This is known as the ‘business tax deduction’ which is allowed only if the pet is proven as a necessity for the business.

Owners here need to prove that their pet is integral to the bloodstream of the company.

Foster Animal Tax Deductions

Adopting or fostering an injured pet from foster care can lead to tax deductions. Every expense made in the name of caring for foster animals is tax-deductible. This is because it’s included as a charitable donation.

If you care for a foster animal that’s qualified as nonprofit, you can get a tax deduction on your pet insurance policy. Unfortunately, this does not apply to every animal you find wandering on the streets.

Taking care of a friend’s pet is also excluded from tax deduction as it’s not considered charitable.

What is Deductible in Pet Insurance?

When it comes to pet insurance, the deductible is the part of the veterinary expense that you should pay for before the insurance takes over. Once you satisfy the amount, you can get reimbursed. 

There are varying deductibles to choose, with higher premiums that lower the deductible, and lower premiums that increase the deductible.

Once an owner pays the deductible, the right insurance company will start returning all those costs depending on the plan they purchased, either 70%, 80%, or even up to 90%. This should be a guarantee for the rest of your dog’s life.

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