Can Pets Be Tax Dependents? A Legal Twist with the IRS

If you've ever tallied up your pet's annual expenses—vet bills, grooming, daycare, and specialty foods—and thought, “This pet is surely my dependent,” you’re not the only one. A New York attorney, Amanda Reynolds, is making this very argument in federal court.

In December 2025, Reynolds filed a lawsuit against the IRS, seeking recognition of her golden retriever, Finnegan, as a legal dependent for tax purposes. This case is a peculiar one, but it brings to light a question taxpayers often ponder: Can any pet expenses be deductible? And if not, why?

Here’s a breakdown of the case's details, the applicable tax regulations, and instances where the IRS acknowledges tax benefits related to pets.

The Legal Argument: Is My Dog a Dependent?

Reynolds argues that Finnegan fulfills the IRS’s criteria for a dependent because:

Finnegan lives with her full-time,
he has no income, and
she covers more than half of his care costs, exceeding $5,000 annually on necessities like food, medical care, and daycare.

In a news report, Reynolds is quoted as saying, “For all intents and purposes, Finnegan is like a daughter and definitely a ‘dependent,’” in her complaint. She also raises constitutional claims, stating that the rules discriminate based on "species" (an Equal Protection argument) and argue that the lack of tax recognition constitutes an improper "taking" (a Fifth Amendment challenge).

Current Status of the Case

The lawsuit is pending in the U.S. District Court for the Eastern District of New York, but progress is paused. A federal magistrate judge approved a motion to stay discovery (the evidence exchange process) as the IRS plans a motion to dismiss.

In court filings, the lawsuit is seen as raising a "novel but urgent question"—whether pets can be considered "dependents" under the tax code. However, the claims are seemingly "unmeritorious on their face", with doubts about surviving a dismissal.

Why Pets Aren’t Considered Dependents

The crux of the lawsuit is the definition of dependents as “individuals.” Under Internal Revenue Code Section 152, a dependent is a qualifying child or relative, historically implying a human being.

Thus, the IRS forms and rules lack a way to list pets as dependents. Dependents require Social Security or taxpayer identification numbers, with associated credits and deductions designed around human relationships.

While Reynolds contends Finnegan meets the functional dependency test (no income, residency with her, supported by her), tax laws don’t define animals as dependent “individuals.”

Existing Tax Benefits for Animals

Despite the general rule against deducting pet costs, there are important exceptions. Your readers will find this particularly useful, as it highlights practical tax advice.

1) Service Animals as Medical Deductions

If an animal is a trained service animal aiding a disability, costs can be treated as medical expenses. The IRS notes that these expenses are deductible if they exceed the AGI threshold and relate directly to medical care.

Essential Note: Emotional support animals usually don’t qualify as service animals under federal law.

2) Business Animals and Deductible Expenses

Animals engaged in legitimate trade or business can be deducted. Examples include:

a guard dog protecting business property, or
animals employed for pest control in business operations.

In such instances, ongoing costs might count as ordinary and necessary business expenses. Reliable documentation and a valid business purpose are crucial.

Your source document highlights this as one of the few allowable tax breaks regarding animals.

3) Fostering Animals and Charitable Deductions

Taxpayers fostering animals for qualified organizations can claim certain unreimbursed expenses as charitable contributions, subject to strict records and conditions.

The Taxpayer’s Takeaway

This case taps into a relatable sentiment: pets are considered family by millions, and their expenses are significant. However, tax law prioritizes statutory definitions over sentiment.

For now:

You cannot claim a dog or cat as a dependent on federal taxes.
Routine pet costs such as food, grooming, and veterinary care are usually personal and non-deductible.
Some pet-related expenses are deductible in niche situations—service animals, certain working animals, and potential charitable deductions for fostering.

While Reynolds’s case is complex, it may not succeed, but it sheds light on the financial role pets play in households, and how distinctly tax policies separate “family” from “property.”

Before assuming deductions, it’s critical to check what the IRS considers valid versus what it doesn’t.

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