Animal-lovers will find that the most popular and easiest pet-related tax deduction comes from donating to qualified charities. Fees paid to an animal rescue or shelter to adopt a new furry family member are not tax-deductible, but any charitable donations of cash or property that you make to these organizations separate from adoption can indeed be claimed. Whether you attend a fundraising event or give straight from your wallet, donating to organizations that help less fortunate dogs is a good way to rack up karma points and tax breaks. Just be sure to keep receipts for donations and confirm the recipient is a qualified organization under IRS rules.

Is Fido a social media influencer? Does he make money starring in ads, movies, or TV shows? If so, his tail will wag when he learns that pet-related deductions could offset the income he generates. There is a caveat, of course; you may not deduct miscellaneous expenses for your hobby unless the main purpose is to make money. In order to claim those tax credits for your canine star, you should set up an official business entity (a corporation, LLC or DBA). If creating and managing a business for your barker sounds taxing, you’ll be relieved to know it can be both an inexpensive and simple venture, and the payoffs can be huge.

If you foster dogs for a qualified charitable organization, you can deduct the cost of caring for them as long as you aren’t being reimbursed for those charges elsewhere. That means the expenses you incur while caring for pups in search of a home -- such as pet food, supplies, transportation and veterinary bills -- can qualify. .

As always, there are a few requirements before you can write off all that kibble:

• You must work with a 501(c)(3) charity to claim a deduction for foster expenses. Although fostering a stray is a noble endeavor, the government won’t reimburse a penny unless you are partnered with a registered non-profit.
• Only expenses that can be directly tied to the cost of caring for fosters can be deducted. If you have “furever” pets in your home, you must buy their food and supplies separately from those belonging to the temporary four-legged residents.
• Expenses deducted must be related to the care of the foster pups. Qualifying expenses may include food, vet visits, trash bags, puppy pads, and pens. And always keep receipts!

If you own a pet-related business, your qualifying deductible expenses will include things like puppy food, leashes, and poop bags. Whether you own and operate a pet store, a veterinarian office, doggy daycare facility, or grooming salon, or have a side-hustle as a pet sitter, trainer, or dog-walker, you can deduct your expenses as long as it’s a registered business. You may even be able to deduct mileage or transportation costs for visiting your canine clients. As with any job-related expense, be sure to keep all receipts and be able to prove the items were for job duties and not your personal pooches.

Costs associated with the care and keeping of a service animal are deductible, but you must have documentation that your support animal is individually trained to provide assistance for a specific, diagnosed mental or physical need. Service animals are considered working animals, not pets, by the government. The costs of buying, training, and maintaining your service animal can be deducted from your taxes along with other medical expenses. In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. Therapy and Emotional Support Animals that are not certified as service animals are considered personal pets and do not qualify for any deductions.

Moving expenses (including the cost of transporting Fido) are not deductible for the majority of us. However, members of the Armed Forces are qualified to claim moving expense deductions on federal taxes. This also applies to the cost of relocating their canines. Moreover, some states still allow civilians to claim moving expenses on their state tax returns.

If you haven’t created a plan for your pup if you pass on, the tax benefits might be an incentive to do so. Choosing a godparent for your dog is a good place to begin, but setting up a legal trust is the most dependable way to ensure Fido gets the care you want for him after you’re gone. While all states have laws that allow for pet trusts, establishing one for your four-legged beneficiary doesn’t mean zero taxes. Depending on how the trust is structured, the party responsible for paying those taxes could be you, the human trust beneficiary (typically the person named as his caregiver), or the trust itself. As there are different types of taxes at both the state and federal levels that may affect your decisions, you should consult an attorney in order to set up a pet trust that makes the most sense for your circumstances.

As always, discuss any potential deductions with your tax professional to confirm they are legitimate for your personal financial and tax situation.