Attorney Challenges IRS: Can Your Pet Be a Tax Dependent?

If you’ve ever pondered whether your pet's expenses could classify them as a dependent, you're not alone in this financial whim. In a groundbreaking legal move, attorney Amanda Reynolds of New York is attempting to legitimize documenting pets as tax dependents.

In December 2025, Reynolds filed a lawsuit against the IRS, demanding that her golden retriever, Finnegan, be acknowledged as a dependent for tax objectives.

While her case might seem unconventional, it tackles a frequent taxpayer inquiry: Are pet expenses deductible? If not, what is the rationale?

Here's a closer examination of the ongoing legal case, the relevant tax regulations, and the few circumstances where the IRS offers potential tax benefits for animals.

The Lawsuit: Defining Dependence

Reynolds contends Finnegan satisfies IRS dependency criteria because:

He permanently resides with her,
He generates no income,
Reynolds covers over half of his upkeep, with costs surpassing $5,000 annually for essentials such as food, medical care, and daycare.

A national news article highlights Reynolds' claim that, “For all practical purposes, Finnegan equates to a daughter and should be recognized as a ‘dependent’.”

Her legal stance also incorporates constitutional arguments, proposing that current tax codes discriminately differentiate between dependents based on “species,” invoking Equal Protection concerns, and improperly denies tax benefits, infringing upon Fifth Amendment rights.

Current Status of the Case

The proceedings are ongoing in the U.S. District Court for the Eastern District of New York. Presently, the case is largely stalled.

The court has put discovery on hold while the IRS drafts a motion to dismiss. In the judge's order, the case is characterized as raising a “novel but pressing issue.” However, skepticism remains about the case's longevity, with the judge indicating that claims are seemingly “unsubstantiated.”

Although active, the court doubts the lawsuit will succeed.

Why Federal Tax Law Excludes Pet Dependents

The heart of the lawsuit's problem lies in tax code language that defines dependents as “individuals.”

Per the Internal Revenue Code Section 152, dependents are either “qualifying children” or “qualifying relatives,” with the term “individual” historically interpreted as a human being. Thus, IRS forms lack protocol for pet dependents. Dependents must have taxpayer ID numbers, with related tax benefits structured around human familial ties.

While Reynolds argues for a functional dependency test for Finnegan, the federal tax framework isn’t built to recognize pets as dependent “individuals.”

Existing Tax Benefits for Animal-Related Expenses

Though standard pet expenses usually can’t be deducted, exceptions exist. Knowing these caveats provides pragmatic tax guidance.

1) Service animals may qualify for medical deductions

Costs related to medically trained service animals can be counted as medical expenses with itemized deductions.

The IRS notes these expenses are deductible if they exceed certain AGI thresholds. Costs for acquiring, training, and maintaining service animals qualify when linked to medical needs.

Key distinction: Emotional support animals aren’t classified as service animals federally; service animals must be task-specific to disabilities.

2) Business animals may be deductible as business expenses

Animals might be part of a business context, such as:

A guard dog safeguarding business premises, or
Animals managing pest control in commercial settings.

Such expenses qualify as ordinary business costs, requiring documentation and legitimacy.

3) Fostered animals may tie into charitable deductions

Those fostering animals for qualified organizations may deduct unreimbursed expenditures as charitable contributions, adhering strictly to IRS rules.

Taxpayer Takeaway

The lawsuit strikes a chord because thousands regard pets as family, but tax statutes rely on established definitions, not sentiment.

Key takeaways include:

Dogs and cats cannot be claimed as dependents on federal taxes.
Regular pet expenses (food, routine vet care) are personal, non-deductible.
Some specific animal-related costs qualify, like for service animals or business uses, and potentially certain charitable deductions for foster care.

While the outcome of Reynolds’ case remains improbable, its visibility raises awareness about the emotional and financial roles pets play, and highlights the dichotomy between household bonds and tax law.

It underscores the necessity for verifying IRS-recognized deductions before claiming them.

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