Summary

Treats certain veterinary expenses and pet health insurance premiums as deductible medical expenses for federal income tax purposes. Expenses for a service animal of the taxpayer (or spouse or dependent) are treated as medical care with no dollar limit; expenses for non-service pets are limited to $1,000 for veterinary care and $1,000 for pet health insurance (each), with both limits indexed for inflation for taxable years after 2025. The change adds definitions by cross-reference to existing statutory/regulatory language and a detailed definitional sentence, and it applies to amounts paid or incurred after enactment.

• Treats veterinary care and pet health insurance premiums as medical-care expenses under the federal medical-expense deduction.
• No dollar limit for veterinary care or pet insurance for service animals of the taxpayer, spouse, or dependent.
• Limits deductions for ordinary pets to $1,000 for veterinary care and $1,000 for pet health insurance, each, with inflation indexing after 2025.
• Caps are rounded to the nearest $50 and indexing begins for taxable years after 2025.
• Definitions for "pet," "service animal," and "veterinary care" are added by cross-reference and statutory language.
• Applies to amounts paid or incurred after enactment.
• Amends 26 U.S.C. § 213(d), so these expenses are claimed through the existing medical-expense deduction rules.
• Will require IRS guidance on documentation, eligibility, and interaction with existing medical expense rules.