Can I Claim My Emotional Support Dog on My Taxes? Understanding Tax Deductions for ESAs

Emotional support animals (ESA) are not just pets. They are special companions that offer immediate relief and comfort to their owners, especially those dealing with heavy mental health issues. The presence of an ESA can truly change the trajectory of your life in a positive way, providing a sense of security and peace. 

However, like any other part of life, there are costs to consider when you have an ESA. The expenses of properly caring for your ESA could range from a few hundred dollars a year to thousands, including veterinary costs, training, and food expenses. 

You might wonder, "How much does an ESA cost?" or "Does insurance cover ESAs?" According to USA Today, the average cost of owning a dog in the United States is $4,512 annually.

So, it's no wonder many ESA owners may ask, "Can I claim my emotional support dog on my taxes?" While the answer is not straightforward, there are instances in which you can claim ESA tax deductions. Service animals are clearly deductible as medical expenses, but ESAs are not. However, there are specific tax deduction requirements for emotional support animals, which we will explain in this article.

Understanding these rules can offer financial relief, so let's dive into some ESA tax deduction rules. We’ll define the various requirements of service animals and ESAs and outline the process of claiming ESA costs, including the proper documentation you will need to claim your ESA expenses on your tax return. 

IRS Guidelines for Deducting ESA Expenses

First, you might be asking, " Can I claim my ESA as a medical expense?" You can if you meet certain requirements. You can automatically claim service animals as medical expenses, but emotional support animals are not classified as service animals. However, if you meet specific criteria, as we will discuss, you can claim ESA expenses on your taxes.

This section will review some of the medical expense rules provided by the IRS so you can learn more.

Medical Expense Deduction Rules

The good news is that you can deduct some emotional support animal expenses as long as you follow the proper guidelines laid out by the IRS. According to the IRS, medical expenses are the costs associated with a disease's diagnosis, treatment, or prevention. They allow for medical expense deductions for any costs related to medical care exceeding 7.5% of your adjusted gross income (AGI).

The IRS doesn't typically consider ESAs as automatic deductible medical expenses as they are not service animals. However, the IRS recognizes emotional support animals under specific conditions. They can qualify as a medical expense deduction. However, they must be part of a prescribed treatment plan by a licensed healthcare provider. You will need to have an ESA letter from a licensed mental health practitioner (LMHP) that states the need for an ESA for your mental health.

You'll also need to have a qualifying disability according to the Americans with Disabilities (ADA) guidelines. The ADA defines a disability as a physical or mental impairment that limits one or more areas of your life. You can claim ESA-related tax deductions if your medical condition meets this definition.

Also, it's important to note that ESA expenses must be related to the animal's role in treating or mitigating your mental health conditions. This could include the costs of vet care, food, grooming, or anything that helps to ensure your ESA's health and well-being so that it can perform its role in supporting your condition.

ESA vs. Service Animal Deductions

Let's examine the ESA tax deduction guidelines and compare ESAs and service animals. Service animals are animals that have specific training to perform tasks for their owners with disabilities. They have certain tax statuses, and the IRS and the ADA recognize them. Service animals are more broadly covered under IRS rules because they directly assist people with physical disabilities. 

ESA's are not. Unfortunately, ESAs are still considered pets for tax purposes. However, you may still be able to write your ESA into your taxes if you have a legitimate ESA letter from your mental health professional. Then, you can use medical expense deductions for ESAs.

Flexible Spending Accounts (FSAs)

Another thing to consider is Flexible Savings Accounts (FSAs). Employers often provide FSAs, which allow you to use pre-tax dollars for many qualifying medical expenses. So, can you use an FSA for emotional support animal reimbursement?

Some of these costs for your emotional support animal could be reimbursed through your FSA. You should check with your FSA provider or tax expert to see if any of your ESA expenses could be used with your FSA.

Which ESA Expenses Can Be Deducted on Taxes?

The cost of everything is going up. If you have a pet, you know how expensive providing care for them can be. However, those with emotional support animals have peace of mind knowing they can have their animal living with them for support without spending extra on pet fees. If you can claim some of your ESA expenses on your taxes, that could also help!

ESA owners may also be able to deduct medical expenses related to their ESA's care. These expenses would include vet costs, medication, and other care. It's important to note that these ESA expenses must be related to the animal's specific role in treating or mitigating mental health symptoms. It's essential that you keep all of your receipts and records to back up your deductions. Let's look deeper into the ESA deductible expenses you can claim on your taxes.

Veterinary Care

You may be able to deduct veterinary care costs for your ESA. The veterinary costs for emotional support animals can be deducted when the care directly relates to your ESA's role in supporting your mental health. So this would include things like routine care checkups, vaccinations, emergency treatments, or any vet-prescribed medication.

Training Costs

Suppose your animal has specialized training to improve its ability to provide emotional support or help you manage your mental health. In that case, these expenses can be deducted. Also, if you are training your ESA to become a psychiatric service animal, those costs would be applicable.

Pet Food and Supplies

Pet food and certain supplies may be deductible if the costs are related to the ESA's medicinal purpose. This would include things like specialty foods, medications, or grooming services required to maintain your ESA's health. Any food or other purchase that you make to better your animal's ability to perform its role and care for your mental health would be deductible expenses.

Licensing and Registration Fees

You might be able to deduct any fees associated with licensing or registration of your ESA. This would include expenses such as ESA certification costs, city pet licenses, or anything similar you need for your animal to continue providing comfort for you.

Required Documentation to Claim ESA Expenses

Now that you know more about what you can claim, let's walk through the required documentation that you will need to claim these various ESA expenses on your taxes. First, you will need to get your Form 1040, and you can deduct medical expenses on Schedule A under itemized deductions.

Medical Documentation

So, first things first, you will need your medical documentation showing that you need an ESA. You'll need an emotional support animal tax deduction letter. This document would be an official ESA letter written by your LMHP. The ESA letter needs to include a statement that says that you have a mental diagnosis and that an ESA is a part of your prescribed treatment plan. The ESA letter should be on a professional letterhead, dated within the year, and have the LMHP's information and signature for verification purposes.

Expense Documentation

The next bit of ESA tax documentation you must include with your tax form is your expense documentation. You'll need to have receipts and records for all the expenses you claim that are related to your ESA. You will want to include receipts for veterinary care, special foods, grooming bills, or any training costs you may have had.

You'll also want to ensure that all your records clearly state that the expenses are for your emotional support animal’s care, which ultimately is needed as part of your medical treatment plan.

How to Claim Your Emotional Support Animal on Your Taxes

Now that you know whether you can claim your ESA-related expenses on your taxes, let's go through the process step-by-step so you will know exactly how to proceed.

Calculate Your Medical Expenses

If you want to know how to claim ESA expenses on taxes, you will first need to calculate your medical expenses. Remember that you can only deduct medical expenses, including your ESA costs, that exceed 7.5% of your adjusted gross income (AGI). You can figure this number out by taking your AGI and multiplying the number by 7.5%. Once you've figured out your number, you can itemize your deductions. This approach only makes sense if the total deductions you qualify for exceed the standard deduction.

You will want to add up all of your qualifying medical expenses, even those unrelated to your ESA, so you meet the IRS threshold. If this number exceeds your threshold, you will fill out Form 1040 with your detailed information.

Filing Your Taxes

The standard deduction rates for 2024 are as follows:

• For singles: $14,600
• For married couples filing together: $29,200
• For head of households: $21,900

But if you take the standard, you won't be able to claim your ESA expenses on your tax return. So, it is essential to add up all your medical expenses exceeding 7.5%. Once you have your number, you can begin to fill out your form.

When filing taxes with an ESA, you will get your IRS Form 1040 and use Schedule A to itemize your deductions. This is where you will report your ESA expenses as part of your medical deductions with your ESA letter, receipts, and records. 

It is important to ensure that your total expenses, ESA-related and otherwise, add up to meet the deduction threshold before you begin to file Form 1040. If you need any help determining if your medical expenses are deductible, you can check with the IRS interactive tax assistant. You can also contact your tax expert and let them guide you.

FAQs

Let's look at some of the FAQs about ESA tax deductions.

Can I deduct food and veterinary costs for my emotional support dog?

You can deduct food and veterinary costs for your emotional support dog if you have documentation that states that your ESA is needed for your qualifying medical condition. Also, these expenses must help keep your ESA at its best to serve its purpose in your medical treatment. You will need receipts and records to deduct these costs.

Do I need a prescription from a doctor to claim my ESA on my taxes?

If you want an ESA tax deduction, you will need an ESA letter or a prescription letter from your licensed mental health practitioner that states that you have a qualifying mental health condition and that your ESA is necessary as part of your treatment.

How do I file taxes for an emotional support animal?

To write off ESA expenses for a tax deduction, you will need to fill out the IRS Form 1040. Under Schedule A deductions, you can itemize your ESA expenses as medical expenses if you have a mental health diagnosis that requires an ESA and proper documentation.

What ESA expenses qualify for tax deductions?

Expenses related to pet food and supplies, training, licensing and registration, as well as veterinary care, can qualify for tax deductions as ESA expenses.

Is an emotional support animal considered a medical deduction?

You can get a tax deduction for ESA expenses if you have a qualifying medical condition and the ESA serves a medical purpose in your life.

Conclusion

While service animals are automatically claimable as a medical expense, emotional support animals are not. However, emotional support animal expenses can be deducted as medical expenses under specific conditions. 

To qualify, you will most certainly need proper documentation and a medical necessity. You will want a legitimate ESA letter from an LMHP, any receipts, and records showing the expenses you claim. Remember that it is always best to reach out to a tax expert when working on tax forms. They can help determine if you meet all the IRS requirements for claiming an ESA on your taxes.

If you need a legitimate ESA letter for proper tax documentation, contact Pettable and take our quiz to get started today.