Your service animal could be used to increase your medical care deduction.
Many visually and physically impaired persons would benefit from the use of a service dog but the costs associated with owning and training a service animal can make that option seem out of reach. However, these costs can be used in your favor if you choose to take advantage of the medical care expense deduction available to most American citizens. Many of the costs incurred by owning a service animal can be added to your overall deduction when filing your personal income taxes.
Medical Care Expenses
Costs associated with a service dog are deductible on an individual's personal taxes as part of their medical care expense tax deduction. Medical care expenses also include dental treatment, fertility enhancement and contact lenses, among other things. An individual can claim the total of his medical care expenses as a deduction that exceeds 7.5 percent of his adjusted gross income (AGI). For example, if a person's AGI is $100,000 in a given year and deductible medical care expenses are $10,000, then $2,500 of that total can be added to your overall deduction on your income taxes.
Service Dog Costs
The Internal Revenue Service allows a service dog owner to write off the total of all costs associated with buying, training and maintaining the service dog that helps an owner with a visual, mental or physical disability. Estimates on the total costs of producing a fully trained service dog range from $42,000 to $50,000. Most of these costs are associated with training, which can exceed $15,000 per dog. Some nonprofit service dog organizations provide these animals to needy owners free of charge, in which case the owner cannot claim a deduction on training costs. Maintenance costs for food and veterinarian visits are deductible each year.
Other Animals
IRS Publication 502, "Medical and Dental Expenses," states that an owner of any service animal, not just a dog, can deduct the costs of maintaining his service animal from his personal taxes. Federal law and most states recognize a wide array of service animals other than dogs, including horses and capuchin monkeys. Service animals are not pets under the regulations of the Americans with Disabilities Act (ADA) and policies restricting pets from some areas or businesses, such as restaurants, cannot bar a service animal of any kind from entering the establishment.
Claiming a Deduction
Deductions for medical care expenses are claimed by including the total costs of all applicable charges in Box 1 of Schedule A of IRS Form 1040. In Box 2, you must write the amount of your adjusted gross income for the year; Box 3 asks you to multiply that total by 7.5. If Box 3 is less than Box 1, record the difference in Box 4. Attach Schedule A with your Form 1040 to claim the medical care expense deduction.
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