Attorney Amanda Reynolds and her eight-year-old golden retriever Finnegan Mary Reynolds filed a lawsuit in the Eastern District of New York seeking to classify pets as legal dependents for tax purposes. Reynolds argues Finnegan relies entirely on her for food, shelter, medical care, training and transportation, has no independent income, lives exclusively with her, and costs over $5,000 annually. “For all intents and purposes, Finnegan is like my daughter, and is definitely a ‘dependent,'” the case states, calling the matter “not frivolous or meritless.” Reynolds contends excluding pets creates unfair taxpayer burden since the IRS allows some service animals tax advantages. Claiming dependents can provide tax credits and deductions including Child Tax Credit and Earned Income Tax Credit. However, Forbes reports no existing case law or statutes permit pet owners such tax breaks. (Story URL)
PHONE TOPIC: What’s the most expensive part about owning a pet for you?