Issue 38  February 16th 2022

Where is my refund?

Internal Revenue Service is still experiencing a backlog of tax returns from prior year. As of December 31, the agency had 6 million unprocessed individual returns. The unprocessed returns around the start of tax seasons are usually around 1 million. Despite a large backlog, if you file your tax return electronically you can expect to receive your refund in about 21 days unless you claimed earned income tax credit (EITC), child tax credit (CTC) or there are some items on your tax return that were not calculated or reported correctly. In those cases, delays could be a few months. Providing bank accounting information for direct deposit will speed up the process of receiving your refund. For more details click on the link below.

W-K9 Tax Return

Caring for our pets is costly... Food, veterinarian care, grooming, dental care, training, pet sitting, emergency medical care, and the list goes on and on.... it all adds up. We may think our fur pets are family members, but the IRS does not, so no deductions. However, take a look at Form W-K9 by clicking on the link below. Wouldn't it be awesome if we could claim our pets? Unfortunately, that is not the case. Here are few cases where pet care could be tax deductible.

There are some circumstances where you might be able to qualify for a pet tax deduction. Here are just a few:

Service Animals for the Disabled: Service dogs are considered a medical expense to the disabled, so the cost of feeding, training, caring, and maintaining their overall well-being, will qualify as a tax deduction.

My Pet is a Business: If your pet is actually a business (a working dog) you will qualify for certain deductions. Here are just a few types of real animal jobs: Sled dog, tracking dog, guard dog, animal actor, pet model & therapy dog.

Foster Parent: If you are a fostering an animal for a nonprofit 501(c)(3) organization then the costs you incur by providing food, medical treatment, and the like to the foster pet in your care, can be claimed as a deduction. Besides keeping all the receipts, always obtain documentation from the rescue organization confirming your volunteer/work position as a foster parent.

Pet Businesses: Of course, if you run a pet business such as a pet portrait studio, dog groomer, pet-sitter, pet store, pet boarding, dog walker, dog trainer, and so on... you will have viable deductions. But in order to claim expenses for your own pet, your pet must be a necessary and regular part of your business expenses. It is important to distinguish between breeder and hobby breeder. To be considered breeder you have to have all the necessary permits, complete records on each dog, etc.

A picture of my three tax season orphans that need attention!