January 8, 2026

Claiming Pets as Dependents: A Tax Controversy Unfurled

If hefty vet bills and daycare expenses for your pet make you think, “This pet is practically my dependent!”, you’re not the only one. Surprisingly, this sentiment made its way to federal court through a New York attorney’s bold move.

In December 2025, attorney Amanda Reynolds initiated a lawsuit against the IRS, advocating for the recognition of her eight-year-old golden retriever, Finnegan, as a dependent for tax purposes.

This surprising case raises a central question: Can any pet expenses be deducted? Here’s a closer look at this unique case, what tax laws dictate, and circumstances under which tax benefits apply to animal expenses.

The Case: Positing “My Dog as a Dependent”

Reynolds argues that Finnegan fulfills the IRS's dependency requirements, since:

He resides with her full-time.
He has no personal income.
Reynolds covers more than half of his upkeep, surpassing $5,000 annually on essentials like food, vet care, and daycare.

A news report highlights Reynolds’s claim: “Finnegan is, for all intents, a ‘dependent’ just like family.” She raises constitutional arguments regarding differences in treatment of dependents based on “species” (Equal Protection) and alleges a lack of tax recognition equates to an improper government “taking” under the Fifth Amendment.

Current Status of the Case

This case, lodged in the U.S. District Court for the Eastern District of New York, is currently paused. The court approved a motion to stay discovery as the IRS prepares a motion to dismiss. A court order acknowledges the novel issue but hints at the case's challenges, noting the claims appear “unmeritorious on their face” and unlikely to withstand dismissal.

While this lawsuit draws much interest, the court is wary of it succeeding.

Why Pets are Not Dependents According to Tax Law

The law is clear: dependents are defined as “individuals.” Under Internal Revenue Code Section 152, this includes a “qualifying child” or “qualifying relative,” with “individual” historically meaning a human being.

IRS forms require dependents to have Social Security numbers or taxpayer IDs, making it impossible to list pets as dependents. While Reynolds stresses Finnegan’s functional dependency, federal tax code does not equate animals with human “individuals.”

Existing Tax Benefits for Animals

While typical pet expenses aren’t deductible, some exceptions exist, which is valuable knowledge for taxpayers:

1) Medical deductions for service animals

Expenses for trained service animals assisting with disabilities can qualify as medical expenses if itemized deductions surpass the AGI threshold. According to the IRS, qualifying costs include acquisition and maintenance tied to medical care.

It’s important to note that emotional support animals typically do not meet federal service animal criteria.

2) Business animals deductible as business expenses

Animals serving legitimate business purposes—such as a guard dog or those used for pest control—may have deductible upkeep costs as business expenses. Documentation and business intent are vital.

3) Foster animals and charitable deductions

Those fostering animals for qualified charities could deduct certain expenses as charitable contributions, with stringent rules and records.

The Taxpayer Perspective

This lawsuit highlights an emotional reality: pets are family to many Americans. Nevertheless, tax law operates on statutory definitions, not emotions.

Presently:

You cannot claim pets as dependents on federal taxes.
Personal pet expenses (like food and grooming) are non-deductible.
Specific animal-related costs can be deductible in limited contexts—like for service or business animals, or with certain foster-related expenses.

As for Reynolds’s case, it’s noteworthy, not for its prospect of changing IRS policy on pet dependents, but because it underscores how integral pets have become to households and how tax policy distinguishes between “family” and “property.”

Above all, it serves as a reminder: check IRS guidelines before assuming any expense is deductible.

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