Tax deductions for pet owners?

“Aw, that puppy is cute! Is he a minor financial burden?”

That’s not something most people are accustomed to hearing when they take Fido out for a walk. Nevertheless, your pet can actually help you out around tax time. Here are three tax deductions you may potentially receive for enjoying time with your pet:Cute dog

1. Guide Dog

This seems like a no brainer, but a lot of people have not considered that their guide dog is a major asset to maintaining their current lifestyle, and the aspects are tax deductible. As per the IRS, the costs of purchasing, maintaining and training a guide dog can be included in medical expense deductions.

2. Guard Dog

Although you see a round eyed pup every time you look at your canine baby, others may see a vicious, toothed warning sign to not go anywhere near your residence. According to Entrepreneur.com in regards to guard dog deductions, you can “…deduct expenses relating to the dog." This is only for legitimate guard dogs of course, not just because your Cocker Spaniel won’t stop yapping at everyone who walks in the door!

3. Moving

Moving can be an emotional and financially-taxing proposition. Luckily, you can deduct your pet as your personal property! I know you don’t want to think of your pet as another piece of furniture, but in some cases, when moving costs are deductible, so is your pet!

With these ideas in mind, remember that taxes can be complex and you should obtain the help of a tax professional to make sure you are able to write off these expenses or find the best ways to do so.

Hopefully, if the situation ever does arrive that someone asks you if your pet is a financial burden, you can answer with a grin, and say “no actually, he was a tax exemption!”

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Defining tax deductions

How would you define tax deductions? Here is a little story that might help.

“Mom, why did you give that man money?” Andy asked.

Mom squeezed Andy’s five-year-old little hand. “That man,” she explained, “is collecting money for people who might not have everything we have. It’s nice to help other people, isn’t it?”tax deduction

Andy thought this over. “Yeah, maybe. But how much can they actually buy with two quarters?”

“You’re right, Andy,” she answered. “Not a whole lot. But it adds up. If everyone in the mall gave him fifty cents, he’d end up with a lot. Dad and I also help other people by sending them a lot more money, but we send them a check in the mail and they send us a receipt.”

“In the mail?” Andy asked.

“Yes,” Mom told him. “We send them a check and get a receipt so that, when we pay taxes, we only pay taxes on the money that we kept and used ourselves, not on the money that we give away. When you give to charity, the government lets you take the amount of money you gave away and subtract it from the money you earn. That’s called a tax deduction.”

A tax deduction is an expense that comes off your income when figuring out how much of your income is taxable.

Feel free to contact a knowledgeable representative from Unity One Credit Union to answer any account questions.

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