This Golden Retriever Just Sued the IRS to Become a Tax Dependent

Have you ever thought of asking the IRS for pet tax deductions? That’s exactly what one attorney is doing, and she might have a case.

Many people in modern society view their pets as part of the family. This is especially true of dogs and cats that are often coddled and cared for with an amazing amount of affection. These furry little freeloaders don’t generally earn an income, and those that do have been trained to do specific jobs by the people who care for them. You can get medical insurance for your pets. Why not deduct them on your taxes?

Could this IRS lawsuit claiming pets as dependents change things

A New York attorney and her golden retriever are taking the IRS to court with an unusual argument. They claim pets should qualify as dependents since they live with their owners full-time, cost thousands each year to care for, and have zero income. Right now, the IRS treats pets as property, but the lawsuit argues they’re more like family members who deserve the same tax benefits. Whether the case has legs or not, it’s sparking a conversation about how Americans view their four-legged companions and the money they spend keeping them happy and healthy.

The argument for pet tax deductions

Should you be able to claim pets on taxes and receive the same pet expense tax deduction as dependent children? The golden retriever tax case certainly argues that point, and the attorney might be right. Amanda Reynolds, an attorney in New York, argues that her dog Finnegan, an eight-year-old golden retriever, should qualify for a tax deduction because she meets the same requirements as a legal human dependent: she has no income, relies on Amanda for her annual expenses, which exceed $5,000, and requires full-time care.

Currently, the IRS defines pets as property, but considering a dog is a living creature and not an inanimate object, this does not reflect the role of most pets in homes across America.

Other animals qualify for pet tax deductions, why not actual pets

Service animals provide their owners with tax credits, and foster pet homes also enjoy some tax benefits for housing animals while in transition to their forever home. To be completely clear, service animals and foster pet homes are specific and qualified to do the job, taking on the extra burden of training and housing that goes beyond the normal costs of pets. Still, a person who has a child receives benefits for that child until they are an adult; why can’t the same apply for pets? You have to choose to have a child, and you choose to house and care for a pet.

Should pet tax deductions be calculated in dog years?

While it might not seem fair to only consider dogs in this case, let’s at least start there. The old calculation dictates that a dog ages seven times faster than a human. Does that mean owners should only be able to receive tax deductions for their dogs for the first three years of life? Are these dogs supposed to go out and get a job, a home, and live on their own at the age of three, which would be 21 in dog years? Of course not, and the absurdity of such a notion is certainly laughable, but so is the idea that the IRS would grand pet owners a tax deduction for simply owning and caring for a pet throughout the year. Still, the cost of care is pretty steep, and can be close to a level that warrants consideration.

Shelters would go out of business

The dream of those who love dogs and cats, which often end up in shelters when they don’t have a home, is to see all shelters empty. If the IRS suddenly allowed pet tax deductions, the shelters would soon be empty, and people would be clamoring for the next litter of kittens and puppies to take advantage of these tax breaks. Breeders would be so busy they wouldn’t be able to keep up with demand, and many owners might stop spaying and neutering their pets in order to have more dogs and cats in their homes. The thought of every pet having a home is wonderful, but the ensuing madness isn’t quite as attractive.

We can certainly wish Ms. Reynolds and her golden retriever good luck in fighting the IRS for pet tax deductions. Unfortunately, it’s unlikely she is going to be successful as the IRS expects to file a motion to dismiss the case because pets are property and not dependents.