Woman takes the IRS to court, arguing pets deserve the same tax treatment as dependents

A lawyer and her golden retriever have taken legal action against the Internal Revenue Service in an effort to have pets recognized as legal dependents, a shift that could open the door to tax benefits for animal owners.

Attorney Amanda Reynolds and her dog, Finnegan Mary Reynolds, filed the lawsuit in the Eastern District of New York, arguing that the dog is fully dependent on Reynolds for food, housing, veterinary care, training, transportation and other necessities, Forbes reported.

Reynolds contends that Finnegan, an eight-year-old golden retriever, earns no income of her own, lives solely with Reynolds and racks up more than $5,000 in annual expenses — criteria that closely mirror the IRS requirements used to define a human dependent.

Although the IRS currently classifies pets as property, Reynolds argues that this designation fails to capture Finnegan’s actual role within their household, according to QZ.

“For all intents and purposes, Finnegan is like my daughter, and is definitely a ‘dependent,’” the lawsuit states, adding that while the argument may sound unusual, it is “not frivolous or meritless.”

Reynolds further argues that refusing to classify pets as dependents places an unfair financial burden on taxpayers, particularly since the IRS already allows certain animals — such as service animals — to qualify for specific tax benefits.

According to Forbes, claiming a dependent can unlock various tax-advantaged credits and deductions, including the Child Tax Credit and Additional Child Tax Credit, the Credit for Other Dependents, and the Earned Income Tax Credit.

Still, Forbes notes that there is currently no language in existing statutes or case law that would permit pet owners to claim those tax breaks.

While pets occupy an increasingly central role in many American households — with research showing “an increasing number of owners have begun to regard their dogs as their children” — the lawsuit faces long odds.

Magistrate Judge James M. Wicks, who is overseeing the matter, has already approved a request to pause discovery, as the IRS is expected to move to dismiss the case.