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We’ve always known dogs to be faithful companions, loyal guards, and even life-savers. But in recent times, more benefits of dog ownership have come to light. From new scientific discoveries to pet-friendlier tax policies, pet ownership now attracts many financial perks that make it more worthwhile than ever.

If you’re struggling to give your furry friend the love and care it deserves during these harsh times, there is a silver lining. Your investments could pay off in spades. Not only when you get a raucous welcome from your furball as you return from work every day, but also from reduced living expenses.

Here’s how owning a dog can help you save up on your cost of living.

Save on Medical Expenses

As anyone would suspect, the well-known health benefits of dog ownership should help reduce medical expenses. Now, recent studies have put it beyond doubt. The Human Animal Bond Research Initiative (HABRI) reports that pet ownership shaves over $12 billion from people’s medical expenses each year.

The research team, comprised of two researchers from George Mason University, came up with the figures based on two criteria – the correlation between pet ownership and fewer medical appointments, and the savings on medical expenses from conditions like obesity.

According to the researchers, pet owners have 0.6 times fewer medical appointments compared to non pet-owners, resulting in annual savings of over $11 billion. The researchers also showed that obese dog owners who walk their dogs regularly are 5% healthier than obese non-pet-owners. That alone decreases healthcare costs for obese pet-owners by over $400 million yearly. Savings were also reported for pet-owners with similar conditions that can be mitigated by the comforting companionship of a furball.

Potential Tax Deductions

It might surprise you to learn that as a dog owner, you may be entitled to tax deductions.* Although most apply only to specific situations – especially relating to business and services, it’s important to learn about all of them in case you qualify. They can help cover things like pet supplies training, and grooming. Also, just like dog insurance, they can help take care of your dog's veterinary care.

Here's a rundown of some high-value pet-related tax deductions:

Service Animal Tax Deductions

If your pet helps in any medical capacity or in managing a health condition, you could qualify for service animal tax deductions. For instance, disabled people - blind, deaf, crippled – can claim tax deductions for dogs that assist them. If your dog is an Emotional Support Animal (ESA), you could also qualify.

Working Animals Tax Deductions

Dog owners can also qualify for tax deductions if their dog performs a business-related service. To claim this deduction, you have to prove that your dog is part of your business operations – merely taking your dog to work won’t cut it, unfortunately. You can also qualify if you can prove that your dog helps you generate income – it could also turn out quite tricky, though. If your claim flies, you’ll be able to write off many expenses - training and grooming, veterinarian costs, feeding.

Foster Care Tax Deductions

About 400 dogs are euthanized each year in shelter homes due to lack of care resources, and Uncle Sam could thank you for helping keep those numbers down. Expenses from caring for an adopted dog may be classified as charitable donations, but you need to adopt a dog from a licensed nonprofit. Unfortunately, you won’t qualify if you pick a stray dog.

Moving-Related Pet Tax Deductions

People moving homes may also be able to claim pet care as part of their moving deductions. Not every move qualifies, though. It must be related to a new job where you’ll be working full time and at least 50 miles from your previous home.

Deductions from Donations

When you donate unused dog care items to animal shelters, you can add them to your charitable tax deductions. The IRS will also write off any out-of-pocket expenses incurred while volunteering for an animal shelter.

Wrapping Up

You can’t put a price tag on all the love and affection your dog brings. However, owning a dog may qualify you for many financial perks that can significantly impact your savings. The mental and emotional support can help promote healing and wellbeing, reducing the need for doctor’s appointments and medication. You can also explore pet-related tax incentives to offset the costs of pet ownership. If you adopted a dog from a licensed nonprofit, you can transfer all your dog's care expenses to the federal government. Do your research to see what benefits may be available in your area or applicable to your situation.

And with reduced living expenses, you’ll have even more money to take care of your furry companion and live happily ever after!

*This is not tax advice and you should consult a tax professional.