Legal Hurdles of Claiming Pets as Tax Dependents

For those who have ever pondered about their furry friends' annual vet bills, grooming costs, daycare fees, and specialty food expenses, it's easy to consider them as financial dependents. Enter an attorney daring to argue this point in a courtroom.

In December 2025, New York attorney Amanda Reynolds initiated a lawsuit against the IRS. The crux of her case? She wants her eight-year-old golden retriever, Finnegan, recognized as a dependent for federal tax purposes.

This case is unconventional, perhaps even surreal, but it raises a question that many consider each tax season: Can any pet expenses be deducted? If they're not, what justifies this exclusion?

The Legal Battle: Pet as a Dependent?

Reynolds asserts that Finnegan fulfills the IRS's dependency criteria, because:

He resides with her full time,
He lacks independent income, and
She provides over half of his support, with expenses surpassing $5,000 annually.

A national news report highlights a claim from Reynolds: “For all intents and purposes, Finnegan is like a daughter, and is definitely a ‘dependent,’” she contends in her legal filing.

Her case also involves constitutional arguments, highlighting presumed unfair treatment based on “species” (an Equal Protection argument) and alleging that the lack of recognition amounts to an unconstitutional "taking" (a Fifth Amendment claim).

Current Status

The lawsuit is currently in the U.S. District Court for the Eastern District of New York. The process is momentarily paused with a stay on discovery while the IRS drafts a dismissal motion.

The judge, in a court's order, acknowledges the lawsuit brings forth a “novel but urgent question” regarding whether domestic pets could be seen as dependents in the eyes of the tax code. However, he cautions about the significant challenges ahead, indicating the claims seem "unmeritorious on their face" and potentially unable to withstand a dismissal motion.

To summarize: while the lawsuit is attracting attention, the court remains doubtful about its potential success.

Decoding Tax Law: Why Pets Aren’t Dependents

Here's the crux: tax legislation describes dependents as “individuals.”

Under Internal Revenue Code Section 152, a dependent is categorized as a “qualifying child” or “qualifying relative.” The term “individual” commonly denotes a human.

This is why IRS forms and guidelines lack provisions for listing pets as dependents. Dependents are typically individuals with Social Security or taxpayer identification numbers, indicated by benefits structured around human household dynamics.

Though Reynolds argues Finnegan adheres to the functional dependency test (lack of income, residency, and financial support), the federal tax guidelines aren't designed to embrace animals as dependent “individuals.”

Existing Tax Benefits for Animals

Although routine pet expenses are non-deductible, there are specific exceptions:

1) Medical deductions for service animals

Costs associated with a trained service animal for disability assistance can be recognized as medical expenses when itemizing deductions.

The IRS clarifies that medical expenses are deductible if itemized and surpass the AGI threshold, making expenses for acquiring, training, and maintaining a service animal deductible if directly linked to medical care.

Important note for readers: Emotional support animals generally do not qualify as federally recognized service animals; the latter are specifically trained for disability-related tasks.

2) Business expenses for working animals

In certain scenarios, animals can secure a role within legitimate trade or business operations—examples include:

A guard dog to safeguard business property, or
Animals involved in pest control within a business environment.

Here, specific ongoing costs may classify as ordinary and necessary business expenses. Proper documentation and a legitimate business purpose are essential.

3) Charitable deductions related to foster animals

Taxpayers fostering animals for qualified entities might qualify for deductions on certain unreimbursed expenses as charitable contributions, though strict rules and records are necessary.

Conclusion:

This lawsuit, while emotionally compelling because pets are “family” for many, is highly structured based on statutory definitions, not emotions.

For now:

No pets can be claimed as dependents on federal taxes.
Basic pet costs (food, grooming, vet care) remain personal and non-deductible.
Some animal-related expenses may be deductible within narrow confines—service animals, specific business animals, and, occasionally, foster-related charitable costs.

The Reynolds case bears watching—not for a likely IRS revision to start including golden retrievers as dependents, but because it highlights the profound emotional and financial reliance households have on pets, while tax policy distinctly evaluates "family” versus "property.”

If nothing else, this serves as a poignant reminder: before considering an expense deductible, verify its eligibility with the IRS.

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