Tax Deductions for Pet Care
Millions of Americans are anxiously awaiting the outcome of a new bill proposed by U.S. Representative Thaddeus McCotter (R-MI) that would make expenses for pet care tax deductible.
Act H.R. 3501, entitled “Humanity and Pets Partnered Through the Years (HAPPY) Act”, would institute a change within the Internal Revenue Code of 1986 to permit pet owners to deduct up to $3500 from their taxable income expenses they occurred in providing adequate pet care. Most routine pet care expenses would be covered however the cost of purchasing a pet would not be covered. Pets that qualify should be able to be described as “a legally owned, domesticated, live animal” and therefore does not include animals that are owned or utilized in conjunction with a trade or business or animals that are used for research.
The HAPPY Act was introduced on 31 July, 2009, and was written based on research supplied by the American Pet Products Association’s National Pet Owners Survey and was then referred to the House Committee on Ways and Means. The Pet Industry Joint Advisory Council is giving their full support and issued an alert on 5 August, 2009:
“Providing pet owners the opportunity to deduct pet care expenses is an important step toward ensuring that pet owners provide adequate veterinary and other necessary pet care. It encourages responsible pet ownership and will hopefully reduce the abandonment of pets by people struggling as a result of the economic downturn.”
Under this bill, a pet’s owner could not cover amounts which were deducted under IRC sections 162 (ordinary and necessary expenses) and 213 (diagnostic and similar procedures, medical devices and other medical expenses not covered by insurance) during the past three taxable years.
However, since this piece of legislation is still being worked out, it is unknown if pet care expenses as defined by the HAPPY Act would include expenses incurred with the ownership of a service animal, such as a seeing eye dog.
Here is a copy of the actual HAPPY bill:
Humanity and Pets Partnered Through the Years (HAPPY) Act (Introduced in House)
HR 3501 IH
111th CONGRESS
1st Session
H. R. 3501
To amend the Internal Revenue Code of 1986 to allow a deduction for pet care expenses.
IN THE HOUSE OF REPRESENTATIVES
July 31, 2009
Mr. MCCOTTER introduced the following bill; which was referred to the Committee on Ways and Means
——————————————————————————–
A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for pet care expenses.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Humanity and Pets Partnered Through the Years (HAPPY) Act’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) According to the 2007-2008 National Pet Owners Survey, 63 percent of United States households own a pet.
(2) The Human-Animal Bond has been shown to have positive effects upon people’s emotional and physical well-being.
SEC. 3. DEDUCTION FOR PET CARE EXPENSES.
(a) In General- Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:
`SEC. 224. PET CARE EXPENSES.
`(a) Allowance of Deduction- In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the qualified pet care expenses of the taxpayer during the taxable year for any qualified pet of the taxpayer.
`(b) Maximum Deduction- The amount allowable as a deduction under subsection (a) to the taxpayer for any taxable year shall not exceed $3,500.
`(c) Qualified Pet Care Expenses- For purposes of this section, the term `qualified pet care expenses’ means amounts paid in connection with providing care (including veterinary care) for a qualified pet other than any expense in connection with the acquisition of the qualified pet.
`(d) Qualified Pet- For purposes of this section-
`(1) QUALIFIED PET- The term `qualified pet’ means a legally owned, domesticated, live animal.
`(2) EXCEPTIONS- Such term does not include any animal-
`(A) used for research or owned or utilized in conjunction with a trade or business, or
`(B) with respect to which the taxpayer has claimed a deduction under section 162 or 213 in any of the preceding 3 taxable years.’.
(b) Clerical Amendment- The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking the last item and inserting the following new items:
`Sec. 224. Pet care expenses.
`Sec. 225. Cross reference.’.
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
Photo Credit: Gore Fiendus
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This would be great… I really believe this would encourage people to stop abandoning their pets and allow them to take better care of them…
I believe the time has come for this sort of idea. It is about time! I have 6 cats and one is on a special dietary food and the others are on other food that is not the store brand variety. So between the food, the yearly check ups and whatever else pops up this would really help. I think it's time for people who don't have children to get a break like the ones that have kids. We pet owners should have rights just as anybody.
I think it is a great Idea,other Countries had this in place for years and it is working great!
When in a financial bind, the first thing you do is get rid of some extra expenses. Your pets shouldn not be on that list of things. I think with this bill it will help decrease the abandoning of pets and help the owners financially. I know it would help me.
Would this include expenses paid for dog daycare or dog walkers?
Maybe they should include pet insurance into Obama's healthcare plan? Cover things from Vet to vet?
Thanks for all the comments! This is a much needed Bill. The only thing it would not cover would be expenses involving the purchasing or adopting of a pet. Everything else would be covered, much like the expenses incurred by parents for the 'human' children.
My though is that is, like children, if you can't afford to maintain something that is NOT a necessity, you shouldn't have it. I own a pet, but feel with high unemployment, pending healthcare being forced on us and, my favorite, skyrocketing defecits, we shouldn't be paying for more taxbreaks for special interests. If everyone likes the socialistic ways Europeans receive breaks for owning a pet, pack up and move. I'm very disappointmented a republican introduced this, especially one from one of the states with highest unemployment, Michigan. Wake up America!
anonymous @ 8:05 – have you considered the fact that sometimes you don't know if you can afford a specific pet until something happens? do you think everyone should budget $10-15k ore more into the life of their pet in case they get hit by a car or eat toxic pet food before it's recalled or get into the trash or whatever, not to mention the myriad genetic diseases and freak illnesses that affect many? certainly many people's expenses go above even a generous estimate of what it costs to "maintain" a pet. it would be unreasonable to expect most people to budget $25k to the life of a pet.
p.s. 63% of Americans does not = a "special interest".
I spent $9,000 on my epileptic dog in the last year of his life and i think this idea is ludicrous. The USA is essentially bankrupt today and the future is not looking bright. The unpleasant reality is that your taxes are going UP, not down, and this country will be going further into bankruptcy as every year goes by.
If the govt wants to help animals it should outlaw the breeding of pets. And this includes so-called "responsible" breeders, as if there were such a thing while millions of homeless animals wait and die in shelters.
I'm extremely disappointed with the changes to the tax code for the last several years. I've got to keep receipts for change the kids throw into the pot at the Salvation Army stands at Christmas now to prove they did it even if it's less than $10, thank goodness we waited the 2 extra weeks to do the door and window replacements so we can deduct those expenses, but my $75 for Turbotax is cut down to $20 every year now because I don't spend money on an attorney?
I lost my job and when the pet food recall happened in 2007 my cat of 14 years ended up costing $750 and they still couldn't fix what was wrong because he had permanent kidney damage. I ended up putting him to sleep and that cost another $300. He was my friend. He slept by me every night for 14 years and I still miss him. Frankly, the tax deduction for the $1050 wouldn't have done much at the time to pay the bill, but it would have made me feel a little better come tax time. I still haven't gotten any acknowledgment from the pet food company and nothing has been done to fix the original problems that caused the recall in the first place.
This is one start to fixing some of the inequities of the tax code. Thank you!
I own 8 cats. I think this bill is stupid. A tax deduction isn't going to prevent someone from abandoning a pet. People abandon pets because they are selfish, not because they can't afford them. The pet became too inconvenient, or they had to move someplace that doesn't allow pets. You can't prevent animal cruelty by mucking up the tax code. That is like claiming we can solve murder by raising taxes on everyone who commits a murder. Duh!
You forget, they(federal gov't) already have your money, you give it to them every week before you get your paycheck, it is sent by your employer to the feds. Wo why would someone think there is something wrong with this bill? This is your money you are trying to get returned to you. anytime we are given the option of a tax credit or deduction we ought to all jump at the chance. Don't forget, it is your money in the first place.
A tax deduction or credit would be great for keeping animals out of shelters or abandoned. It can make a difference, every little bit helps and I personally don't sneeze at $3500-
I have 6 rescue pets and that amount is a drop in the bucket, but heck yeah, it helps.
Like I said and maybe for some of those out there it needs to be repeated over and over-
It is your money – money the gov't demands from you- you have no choice, you have to pay. We all could use a break. I doubt Washington will pass this, they are so broke, they are looking under mattresses for money-better hide yours!
This would be great. We have 2 cats and 2 dogs. Thank goodness we have Banfield at Pet Smart. A vet is way to expensive. Last year in a month we spent $3,500 to try and find out what was wrong with our one cat.We pay around $20 to $25 for each animal a month for health ins. Can't afford not to.