This is the first year ... I got a life insurance policy for my cat ... how do I handle it when I do my tax return?
2007-03-27 06:01:07 · 6 answers · asked by Reserved 6 in Business & Finance ➔ Taxes ➔ United States
Sorry but you can't deduct the cost of a life insurance policy for you or your cat on your tax return. Also, unless your cat assists a visually-impaired or hearing-impaired person, or a person with other physical disabilities, your catss expenses aren't deductible on your tax return.
2007-03-27 06:42:53 · answer #1 · answered by Lee, CPA - TurboTax employee 2 · 0⤊ 0⤋
It should not appear anywhere on your tax return. Premium payments are not tax deductible.
Why are you wasting money insuring the life of your cat? You should insure the life of income producers in your family only.
2007-03-27 07:57:27 · answer #2 · answered by Rick 2 · 0⤊ 0⤋
You will need to itemize your deductions, called form 1040. Itemized deductions are things, such as you mentioned, that you document the cost you paid. The total is then deducted from your pre-tax earnings. In the end, it helps reduce the amount of total taxes that you paid for deductible items.
Just to note, you need to have enough things to itemize to make doing that worth while (many people become frustrated doing their own taxes when they itemize deductions, that is where tax professionals frequently come in). You can tax deduction your annual car registration/licensing costs, all the copays you see when visiting your doctor, your pet's veterinarian expenses, state taxes you paid on last years taxes, gifts to charity ($ and value of clothing), and many other things.
The IRS 1040 form is available below.
http://www.irs.gov/pub/irs-pdf/f1040sab.pdf
IGNORE the guy below. Of course I saw the word cat!! :P
See the link below, yes you can tax deduct certain costs (not all) associated with pets. You can claim your PET FOOD :) .
What you cannot do is claim your pet as a dependent.
From Yahoo Finance
http://finance.yahoo.com/taxes/article/102649/Top-Ten-Oddball-Tax-Deductions
From AOL Finance
http://money.aol.com/kiplingers/tax/ten-oddball-tax-deductions
2007-03-27 06:10:34 · answer #3 · answered by Anonymous · 0⤊ 1⤋
No deduction there,
you don't claim it on your taxes...
But the beneficiary doesn't have to pay tax on the money when they receive it.
2007-03-27 06:56:11 · answer #4 · answered by Jo Blo 6 · 0⤊ 0⤋
For your Cat? Boy, the woman above missed that tidbit.
I think you are out of luck myself.
2007-03-27 06:16:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It is not deductible.
2007-03-27 07:06:26 · answer #6 · answered by Ola 4 · 0⤊ 0⤋
You don't. It's not deductible.
2007-03-27 06:26:08 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 0⤋