PAW Act of 2025

Treats certain pet costs as medical expenses for tax purposes. Veterinary care and pet health insurance for a taxpayer’s, spouse’s, or dependent’s service animal or pet can count as medical care. For each pet, up to $1,000 of veterinary care and $1,000 of pet health insurance per tax year qualify, with the dollar limits adjusted for inflation for tax years beginning after 2025. The change applies to amounts paid or incurred after enactment and can affect deductions and other tax benefits that use the medical-expense definition in tax law.