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IRS to Allow Tax Deductions for Pets in 2025

Everything you need to know to save money...

What Pet Expenses Are Tax Deductible? We Dive Into All The New Rules

There’s a lot of misinformation about new tax rules for pets starting in 2025.  So we’re here to clarify some new rules about pets on our human taxes, and all the scenarios where you can deduct expenses related to your pet.

While we all wish we could claim our pets as dependents (they are family, after all), the IRS doesn’t quite see it that way. But don’t drop your calculator just yet—some pet-related expenses can be deductible!

New IRS Rules

As of 2025, the IRS has introduced new guidelines allowing pet owners to deduct certain pet-related expenses under specific circumstances. Here's what you need to know:

1. Service and Emotional Support Animals

  • Service Animals: Expenses for certified service animals assisting with medical conditions are now deductible. This includes costs for purchasing, training, food, grooming, and veterinary care.

  • Emotional Support Animals: While not previously eligible, certain expenses for emotional support animals may now qualify for deductions, provided you have documentation from a licensed healthcare provider.

2. Working and Performance Animals

  • Business Use: If your pet contributes to your business—such as a dog providing security or a cat controlling pests—expenses like food, training, and veterinary care are deductible.

  • Performance Animals: Pets earning income through performances in commercials, movies, or print ads can have related expenses deducted, including training, grooming, and transportation.

3. Moving Expenses for Pets

  • Relocation: Pet transportation costs incurred during a move that meets IRS criteria are now deductible. Ensure your move qualifies under the latest IRS moving expense guidelines.

These changes aim to provide financial relief to pet owners by recognizing the essential roles pets play in various aspects of life. For detailed information and to determine your eligibility, consult the IRS guidelines or a tax professional.

Note: Tax laws are subject to change. Always refer to the latest IRS publications or seek professional advice for current information.

For a visual overview of these updates, you might find this video helpful:

All Eligible Scenarios & Deductible Costs

While pets are not typically tax-deductible, there are specific scenarios where the IRS allows deductions for pet-related expenses. Below is a comprehensive breakdown of all the ways you may be able to deduct pet-related costs, categorized by eligibility scenario with the specific deductible expenses under each.

🐕 1. Service Animals (Medical Expense Deduction)

Certified service animals that assist individuals with disabilities

Deductible Expenses:

✔️ Purchase cost of the service animal
✔️ Training & certification fees
✔️ Veterinary care & medical expenses
✔️ Food & specialized diet needs
✔️ Grooming (if necessary for the animal’s function)
✔️ Boarding & care while the owner is hospitalized
✔️ Equipment (e.g., harness, leash, vests)

📌 Must be a certified service animal and provide medical assistance to qualify. Expenses must exceed 7.5% of AGI to claim as a medical deduction.

🐕‍🦺 2. Working Dogs (Business Expense Deduction)

Dogs used in business operations (e.g., security dogs, herding dogs, pest control, police/military dogs, etc.)

Deductible Expenses:

✔️ Purchase & training costs
✔️ Veterinary care
✔️ Food & dietary needs
✔️ Grooming (if necessary for job performance)
✔️ Specialty gear (e.g., protective vests, boots, tracking collars)
✔️ Insurance for liability protection

📌 The dog must serve an essential business function to qualify for deductions under business expenses.

📸 3. Pet Influencers & Animal Actors (Business Expense Deduction)

If your pet generates income as an influencer, model, or performer

Deductible Expenses:

✔️ Photography & videography equipment
✔️ Social media management tools & subscriptions
✔️ Editing software
✔️ Paid promotions & advertising
✔️ Outfits & accessories (used specifically for brand deals)
✔️ Specialty grooming for appearances & sponsorships
✔️ Training classes for on-camera behavior
✔️ Handlers, pet consultants, or agents
✔️ Legal & accounting fees related to business
✔️ Travel (flights, hotels, transportation for paid gigs)
✔️ Set design & props for content creation
✔️ Internet, phone, and business-related software
✔️ Storage for influencer-related supplies

📌 Your pet must have earned income through brand deals, appearances, or ad revenue. Expenses must be directly related to business activities.

🐾 4. Fostering Pets for a Registered Charity (Charitable Deduction)

Fostering animals on behalf of a 501(c)(3) nonprofit rescue or shelter

Deductible Expenses:

✔️ Food & treats for the foster pet
✔️ Veterinary expenses (if not reimbursed by the charity)
✔️ Bedding, crates, and toys for the foster pet
✔️ Travel expenses related to foster care duties
✔️ Cleaning supplies for foster pet care
✔️ Advertising costs if you promote adoptions

📌 Expenses must be unreimbursed and related to a registered 501(c)(3) charity to qualify.

🚛 5. Moving Expenses for Pets (Military Relocation Only)

Active-duty military members relocating due to orders

Deductible Expenses:

✔️ Pet transportation fees
✔️ Health certificates & required vaccinations for travel
✔️ Temporary boarding costs during the move

📌 This deduction is only available to active-duty military members moving due to orders.

📜 6. Estate Planning: Pet Trusts (Legal Expense Deduction)

If creating a pet trust in your estate plan

Deductible Expenses:

✔️ Legal fees for drafting a pet trust
✔️ Trust management fees (if applicable)

📌 Pet-related costs in the trust (food, vet care, etc.) are not deductible, only legal expenses.

⚠️ What’s NOT Deductible?

🚫 Routine pet expenses (food, toys, vet visits, grooming, etc.)
🚫 Pet insurance premiums
🚫 Emotional support animals (only certified service animals qualify)
🚫 Adoption fees or breeder costs

Final Tips for Claiming Deductions:

  • Keep detailed records (receipts, invoices, contracts)

  • Ensure expenses are directly tied to the eligible scenario

  • Work with a tax professional to maximize deductions

This list covers all current tax-deductible pet expenses based on IRS guidelines! 🐶💰

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