Dog Dependency: IRS Case Challenges Tax Law

The question of pet expenses, from yearly vet bills to specialty foods, often leads pet owners to ponder, “Could my pet be considered a dependent?” For one attorney, this notion has transitioned from a personal query to a federal courtroom debate.

In December 2025, New York attorney Amanda Reynolds filed a groundbreaking lawsuit against the IRS, seeking to recognize her eight-year-old golden retriever, Finnegan, as a legal dependent for tax purposes.

While this case might seem outlandish at first glance, it touches a nerve among taxpayers who annually question: Are pet expenses deductible? If not, why?

The Dog Dependent Debate Begins

Reynolds argues in her complaint that Finnegan meets the IRS's criteria for dependents based on:

residing with her full-time,
having no personal income, and
requiring over half of his financial support from her, exceeding $5,000 annually for food, medical care, and daycare.

A national news report captures Reynolds asserting, “For all intents and purposes, Finnegan is like a daughter, a dependent.”

Reynolds’ lawsuit also raises constitutional issues, claiming the tax code unfairly discriminates based on “species” and that refusing tax benefits for Finnegan constitutes an unconstitutional “taking.”

Current Status of the Case

Proceedings are ongoing in the U.S. District Court for the Eastern District of New York. However, discovery is on hold, pending the IRS's motion to dismiss.

The judge's order labeled the case an “urgent but novel question” on classifying companion animals as tax dependents, yet also revealed skepticism about the lawsuit's merit, doubting its survival against dismissal.

Why Pets Aren’t Recognized as Dependents

The primary legal challenge the lawsuit faces is the tax code’s definition of dependents as “individuals.”

According to Internal Revenue Code Section 152, a dependent is a “qualifying child” or “qualifying relative,” terms implying human individuals.

IRS forms, requiring Social Security numbers or taxpayer identification for dependents, are designed for human relations and exclude pets outright. While Reynolds makes a functional argument for dependency, tax code practises don’t categorize animals as “individuals.”

Existing Tax Benefits for Pet-Related Expenses

While routine pet costs aren't deductible, some exceptions apply. Here’s insight from the tax expert corner that might interest pet owners seeking financial relief.

1) Service Animals and Medical Deductions

Expenses for service animals aiding disabilities may qualify as medical expenses if itemized deductions exceed a certain AGI threshold, as outlined by the IRS.

Critical Note: Emotional support animals typically don’t fall under this category; service animals must be trained specifically for disability tasks.

2) Animals and Business Deductions

Certain animals used for business, such as a guard dog for security or pest control animals, may incur necessary business expenses. Key here is adequate documentation and true business intent.

3) Fostering Animals and Charitable Deductions

Some fostering expenses for qualified organizations might count as charitable contributions, given strict adherence to documentation.

Implications for Taxpayers

Despite pets representing familial bonds for many, tax law relies on statutory criteria, not emotions.

No pets qualify as dependents on federal returns.
Routine pet costs typically remain non-deductible personal expenses.
Some animal-related expenses may be deductible, under strict conditions — service animals, business use, and certain foster expenses.

The Reynolds case, intriguing though questionable in its chances, underscores a rising sentiment: pets are pivotal in many households, yet tax laws continue to sharply delineate “family” from “property.”

And crucially, before assuming any tax deduction, it’s essential to verify IRS recognition and limitations.

Share this article...

Facebook

Twitter WhatsApp LinkedIn Pinterest Pocket Reddit Email

Want our best tax and accounting tips and insights delivered to your inbox?

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Tax Lady 1040 We love to chat

Please feel free to use our Ai powered chat assistant. Or use the buttons below to contact us.

Please fill out the form and our team will get back to you shortly The form was sent successfully

First Name *

Last Name *

Email *

Mobile Number

Message *