At our last visit, as we were writing our fourth (or was it the fifth?) consecutive check to the veterinary hospital, there was much joking about how vet bills should be tax-deductible. After all, pets are dependents, too, right? (Guffaws all around.)
Now, halfway through tax-filing season, comes news that pets are high on the list of unusual deductions taxpayers try to claim. From routine pet expenses to the costs of adopting a pet to, yes, pets as "dependents," tax accountants have heard it all this year, according to the Minnesota Society of Certified Public Accountants, which surveys its members annually about the most outlandish tax deductions proposed by clients.
Most of these doggy deductions don't hunt, but, believe it or not, some do. Could there be a spot for Sammy and Inky on our 1040?
Taxpayers typically itemize deductions on Schedule A of the 1040 form when their (legitimate) itemized deductions total more than their standard deduction. That hurdle rose last year after Congress imposed new limits and phase-outs for itemized deductions.
For example, your own unreimbursed medical expenses are deductible only to the extent that they exceed 10% of your adjusted gross income, up from 7.5% previously. (People age 65 and older can use the old threshold through 2016.)
Other deductions may be reduced if your AGI exceeds $300,000 for married people filing jointly or $250,000 for singles.
Still, if you have sizable uninsured medical expenses or casualty or theft losses, make generous charitable contributions, incur large business expenses that aren't reimbursed by your employer, pay mortgage interest, or live in a high-tax state, you definitely want to run the numbers. [SNIP....the Carolyn T Geer article continues at the Wall St. Journal. Click here to continue reading the article at the Wall St Journal].
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