Tax Credits for Service Dogs

When tax season rolls around every year, it's easy to get overwhelmed by the filing process and forget to include important deductions that can save you money. Depending on your circumstances, one deduction you may be able to claim are the total expenses you have incurred from owning a service dog.

Classification

Dogs used for medical purposes are classified into three categories: guide dogs, hearing dogs and service dogs, according to legal resource Nolo. Guide dogs are used to guide the blind, while hearing dogs are trained to alert their hearing-impaired owners to such noises as ringing phones and doorbells; beeping crosswalks and fire alarms; and crying babies. Service dogs, also known as support dogs, act as the "arms and legs" of their physically disabled owners. Service dog responsibilities may include opening the refrigerator or front door for their owners and aiding them with everyday activities.

Cost of Service Dogs

Though the comprehensive instruction that goes into properly training these dogs can be expensive, this cost may be recouped through tax deductions. Also, the cost of training a service, guide or hearing dog can be relatively less expensive than it would be for a disabled person to hire a full-time assistant, according to Nolo, which refers to a study that found disabled people who owned a service dog for one year "spent 68 percent less on hired assistants than they had before."

Tax Credits

You may not claim your service dog as a dependent, but your dog can be claimed as a tax deduction on your filing, states the National Association of Enrolled Agents. According to the Internal Revenue Service, expenses related to buying, training and maintaining an assistance dog are considered a valid medical deduction. These expenses, though, are tax-deductible if they are more than 7.5 percent of adjusted gross income, states The New York Times. Service dog expenses that are equal to or less than the first 7.5 percent of your income cannot be deducted on your taxes.

How to File

To deduct your service dog expenses appropriately, TurboTax states that these type of medical deductions should be filed on a Form 1040, Schedule A form. You must itemize these deductions in order for them to be processed correctly.

References

• Nolo: Every Dog's Legal Guide
• National Association of Enrolled Agents: When is the Dog Deductible?
• "The New York Times" Newspaper; An Aide for the Disabled, a Companion, and Nice and Furry; Walecia Konrad; August 22, 2009
• Internal Revenue Service: What Medical Expenses Are Includible?
• TurboTax: Medical Expenses Checklist