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Attorney Challenges IRS on Pet Dependency Claims
Have you ever glanced at the yearly expenses for your pet, from vet visits and grooming to daycare and specialized diets, and wistfully thought, “This furry companion should be acknowledged as my dependent!”? If so, you are not alone. In an unprecedented move, one attorney is putting this notion to the legal test in a federal court.
In December 2025, Amanda Reynolds, a New York attorney, filed a lawsuit against the IRS, seeking to have her eight-year-old golden retriever, Finnegan, legally recognized as a dependent for federal tax purposes.
While the case may seem outlandish, it raises an important question many taxpayers ponder annually: Can any expenses related to our pets be deducted? If not, why is that the case?
Let’s explore the intricacies of this lawsuit, what current tax law stipulates, and identify the rare scenarios where the IRS permits tax benefits in connection with animals.
The Lawsuit: Does Finnegan Qualify as a Dependent?
Reynolds argues in her lawsuit that Finnegan meets the IRS’s dependency criteria:
He resides with her full time.
He has no income.
Reynolds provides more than half of his support, spending over $5,000 annually on essentials like food, medical care, and daycare.
According to a national news report, Reynolds states in her complaint, “For all intents and purposes, Finnegan is akin to a daughter and certainly a ‘dependent.’”
Moreover, she posits constitutional claims, asserting that the current regulations unjustly differentiate between dependents of different “species,” a contention grounded in the Equal Protection Clause, and alleges that the lack of tax acknowledgment constitutes an improper “taking” as per the Fifth Amendment.
Current Status of the Case
The case is being reviewed in the U.S. District Court for the Eastern District of New York and is currently on hold. A federal magistrate judge has approved a stay in discovery, pausing the stage where parties gather evidence, as the IRS prepares its motion to dismiss.
In a court docket, the judge acknowledges the “novel yet pressing question” of whether domestic companion animals could be considered as dependents under the tax statute. However, they also note that the government has shown that the lawsuit appears “unmeritorious on its face,” and it likely won’t survive a dismissal motion.
To summarize, the lawsuit is actual and active, attracting attention; however, the court remains openly skeptical about its potential for success.
Understanding Federal Tax Law on Pet Dependency
Here lies the core issue for Reynolds's lawsuit: Tax law classifies dependents as “individuals.”
The IRS Code Section 152 identifies a dependent as a “qualifying child” or “qualifying relative,” specifying the term “individual” in a historically human-centric context.
This is why IRS documentations don’t offer a format to declare pets as dependents. Dependents are expected to have Social Security or taxpayer identification numbers, and the associated credits and deductions are structured around human familial and domiciliary ties.
Although Reynolds contends Finnegan satisfies the dependency factors (no income, lives with her, dependent on her support), the federal tax framework does not translate animals into “individual” dependents.
Existing Tax Benefits Relating to Animals
Routine pet expenses are generally nondeductible, but notable exceptions exist, offering practical tax insights for readers.
1) Service Animal Deductions
For animals trained as service animals assisting with disabilities, associated expenses can be classified as medical deductions if itemized.
The IRS clarifies that medical expenses may be deductible if they exceed applicable AGI thresholds. Consequently, costs for acquiring, training, and sustaining a service animal may qualify.
Important clarification for readers: Emotional support animals do not generally fall under 'service animals' per federal standards. Service animals are specifically trained for disability-related tasks.
2) Business Expense Deductions for Animals
A legitimate trade or business may include animals, for example:
A guard dog securing business premises, or
Animals engaged in pest control within a business environment.
Relevant costs may be recognized as ordinary and necessary business expenses, necessitating documentation and legitimate business intent.
This category is highlighted as one where IRS provides animal-related tax relief.
3) Charitable Deductions for Foster Animals
Fostering animals for eligible organizations might allow some taxpayers to deduct certain unreimbursed expenses as charitable, given strict compliance with guidelines and proper record-keeping.
Conclusion for Taxpayers
The resonance of this lawsuit is clear: pets hold familial status for countless Americans, with consequential costs. Yet, tax law is built on statutory definitions, not sentiment.
Presently:
Pets like dogs and cats cannot be claimed as dependents on federal tax declarations.
Ordinary pet expenses (like food, grooming, or typical vet care) are deemed personal and cannot be deducted.
Some animal-related expenditures may qualify under limited circumstances, such as service animals, business-oriented animals, and specific foster situations.
The Reynolds lawsuit may merit attention—not for expected changes in IRS policy regarding pet dependents, but for highlighting the emotional and financial reliance on pets in many households, and the stark legal divide between “family” and “property.”
If anything, it prompts a prudent reminder: always verify IRS guidelines before assuming tax deductibility.
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