Whether you walk dogs, sit for pets in their home, or board animals in yours, you are an independent contractor on the Wag platform. Wag does not withhold taxes from your earnings, and every deduction you overlook comes straight out of your pocket at tax time.
The deduction profile for Wag caregivers looks different from most gig platforms. There are no delivery routes, no restaurant pickups, and for many caregivers, no vehicle expenses at all. What there is is a specific set of gear, supplies, and home-based costs that are fully legitimate and often completely missed at tax time.
This guide is organized by service type. Start with the section covering all Wag caregivers, then move to the section that matches how you work.
Deductions for all Wag! caregivers
These deductions apply to all Wag caregivers regardless of whether you walk, sit, or board. They cover the operational costs of running your pet care business and the financial realities of self-employment that most caregivers never fully take advantage of.
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Phone and data plan
The Wag app is how you receive bookings, communicate with pet owners, send walk reports and GPS updates, and manage your schedule. Deduct the business-use percentage of your monthly phone bill and device cost. If your phone is used 60% for Wag and 40% personally, 60% of each cost is deductible.
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Wag platform and booking fees
Wag takes a percentage of each booking as a service fee. These fees come directly out of your earnings and are fully deductible as a cost of doing business on the platform. Review your earnings statements throughout the year to track exactly what is being withheld and record it as a business expense.
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Business app subscriptions
Expense tracking software, mileage tracking apps, scheduling tools, and any other paid subscription used specifically to manage your Wag business are deductible. Keep a record of what each subscription costs and how it supports your work.
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Tax preparation fees
The cost of tax software or a CPA to handle your Schedule C and self-employment taxes is deductible. Independent contractor returns are more involved than a standard W-2 filing, and the preparation cost is a legitimate business expense.
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Self-employment tax deduction
As a self-employed Wag caregiver, you pay both the employee and employer sides of Social Security and Medicare taxes. The IRS lets you deduct half of that total from your gross income above the line, regardless of whether you itemize. It is one of the most straightforward deductions available to any self-employed worker.
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Health insurance premiums
Wag offers no health coverage. If you pay for your own health, dental, or vision insurance and are not eligible for a plan through a spouse's employer, you may be able to deduct those premiums in full. This above-the-line deduction is available even without itemizing and can significantly reduce your taxable income.
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Retirement account contributions
A SEP-IRA, Solo 401(k), or SIMPLE IRA lets you reduce your taxable income while building savings for the future. There is no employer match through Wag, but the contribution limits for self-employed workers are generous and every dollar you contribute reduces your taxable income dollar-for-dollar.
Wag! Walker deductions
Mileage
Walkers who drive to client homes or between back-to-back walk locations have a real but specific mileage deduction available to them. Unlike delivery platforms where mileage is the dominant deduction, walker mileage is more limited in scope and needs to be documented carefully to hold up if questioned.
The drive from your home to your first walk of the day is a personal commute and is not deductible. Your deductible mileage begins once you are actively traveling between work locations or running a business errand directly tied to your Wag work.
If you do not drive to walks and complete all your bookings on foot from your home neighborhood, this section does not apply to you.
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Driving to a client's home
If you drive to reach a client's home for a walk, the miles from your previous work location to that address are deductible. If it is your first booking of the day and you are coming from home, those miles are a personal commute and do not qualify. Miles between client locations during an active work day do.
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Driving between back-to-back walk locations
Miles driven from one client's home to the next during a day of back-to-back bookings are fully deductible business miles. Log each leg with the client address as the destination and note that it is a Wag booking as the business purpose.
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Picking up walking supplies and gear
A trip to a pet store or retailer to purchase leashes, waste bags, treat pouches, or other gear used exclusively for your Wag walks counts as deductible business mileage. Keep the receipt for the purchase and log the trip with the business purpose noted.
⚠️ Mileage is limited for walkers who work close to home
If most of your walks are in your immediate neighborhood and you walk to your clients rather than drive, your deductible mileage will be minimal. Only log and claim miles that have a clear and documentable business purpose. Overclaiming mileage is one of the most common audit triggers for self-employed workers.
Equipment & supplies
The gear you use to walk dogs safely and professionally is a legitimate business expense. From the leash in your hand to the rain jacket on your back, the tools of the job are deductible. Keep receipts and track these purchases separately from personal pet supply shopping.
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Leashes and harnesses
Professional walkers often carry their own backup leashes and harnesses for safety and reliability. Leashes and harnesses purchased for use with client dogs are fully deductible as business equipment. These are not the same as supplies for a personally owned pet.
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Treat pouch and training treats
A treat pouch worn during walks and treats used to manage and reward client dogs during a booking are deductible. These are direct tools of the job, not personal pet expenses. Track treat purchases separately and note they are for client use.
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Waste bags and dispensers
Waste bags used during client walks are a routine and fully deductible business supply. Dispensers attached to leashes or belt clips are deductible equipment. Buy in bulk, keep the receipt, and track these as ongoing business supplies.
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Reflective gear and safety lights
Early morning and evening walks often happen in low-light conditions. Reflective vests, clip-on lights, or other visibility gear purchased for your safety during walks is a deductible business expense. This is particularly relevant for walkers who regularly take bookings outside of daylight hours.
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Weather gear for outdoor walks
Rain jackets, waterproof boots, and cold weather gear purchased specifically because your job requires you to be outside in all conditions are deductible. This is stronger as a deduction when the items are clearly work-specific and not doubling as personal outdoor gear.
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Pet first aid kit
A pet first aid kit carried during walks is a reasonable and necessary safety measure for any professional walker. The cost is fully deductible as a business expense. Replenishment supplies like bandages and antiseptic wipes are also deductible as you replace them.
Wag! Sitter deductions
Wag sitters who care for pets in a client's home or board animals in their own home have a unique deduction profile compared to walkers. Your expenses are less about gear on your person and more about the supplies, space, and preparation required to care for animals in a home environment. Some of these deductions, particularly the home space deduction, require strict documentation to claim correctly.
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Dedicated pet care space in your home
If you use a specific area of your home exclusively and regularly for boarding dogs, you may be able to deduct a portion of your home expenses as a home office deduction. The space must be used only for your Wag business, not as a dual-purpose living area. The deductible amount is calculated based on the percentage of your home that space represents. This requires careful documentation and a tax professional can help you calculate it correctly.
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Pet bedding and crates for boarded animals
Beds, crates, kennels, and similar items purchased to accommodate client pets during boarding stays are fully deductible business equipment. These are distinct from supplies for a personally owned pet. Keep receipts and note that purchases are for client use.
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Cleaning supplies for pet-related messes
Enzyme cleaners, paper towels, disinfectants, and other cleaning products used specifically to manage messes from boarded or sitting pets are deductible business supplies. Track these separately from your personal household cleaning purchases and keep receipts.
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Pet first aid supplies and safety equipment
A pet first aid kit kept at home for boarded animals, baby gates to manage pet access to certain areas, and other safety equipment purchased for your sitting business are fully deductible. These are direct costs of running a safe and professional boarding operation.
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Pet care certification and training costs
The cost of pet first aid certification, animal behavior courses, or other professional training taken to improve your skills as a Wag sitter is deductible as a business education expense. The training must be directly related to your current work, not preparation for a different career.
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Pet sitting liability insurance
If you carry independent liability insurance for your pet sitting business beyond what Wag provides, those premiums are fully deductible as a business expense. Professional liability coverage is a reasonable and necessary cost for anyone caring for client animals in their home.
What Wag! Caregivers cannot deduct
Pet care work comes with some deduction pitfalls that are specific to the nature of the job. These are the most common mistakes Wag caregivers make when filing:
| Expense |
Why it doesn't qualify |
| Food and supplies for your own pets |
Expenses for personally owned animals are personal costs regardless of what you do for work. Food, toys, beds, and vet care for your own pets do not become deductible because you also care for client pets professionally. |
| Vet bills for personally owned animals |
Veterinary expenses for your own pets are never deductible as a business expense, even if you argue your personal pets make you a better caregiver. The IRS draws a clear line between personal and client animal expenses. |
| Home space used for personal purposes too |
The home office deduction for boarding requires the space to be used exclusively for your Wag business. A living room where you also board dogs does not qualify. The exclusive use requirement is strictly enforced by the IRS. |
| Reimbursed expenses from clients or Wag |
Any cost that a client or Wag reimbursed you for cannot also be claimed as a deduction. Only out-of-pocket expenses qualify. |
| General home expenses without a qualifying dedicated space |
Rent, mortgage interest, and utilities are only deductible as business expenses if you have a qualifying dedicated space used exclusively for your Wag work. Without that, general home costs remain personal expenses. |
Wag! Caregiver tax FAQ
Does Wag send a 1099?
Yes. If you earned $600 or more through Wag in a calendar year, you will receive a 1099-NEC. You are required to report all income regardless of whether you receive a form, and even if your earnings were below $600.
Can I deduct supplies I use for client dogs during a walk or stay?
Yes. Supplies purchased specifically for use with client animals during a booking are deductible business expenses. This includes treats used during walks, waste bags, and cleaning supplies used after a boarding stay. The key is that these are for client use, not for personally owned pets. Keep receipts and track them separately.
Do Wag caregivers have to pay quarterly taxes?
If you expect to owe more than $1,000 in federal taxes for the year, the IRS requires quarterly estimated payments. Wag withholds nothing from your earnings, so if you are not setting money aside throughout the year you may face an underpayment penalty when you file.
Can I deduct part of my home if I board dogs through Wag?
Potentially, but the requirements are strict. The space must be used exclusively and regularly for your Wag boarding business. A shared living space where you also board dogs does not qualify. If you have a dedicated room or area used only for boarding, a tax professional can help you calculate the correct deduction based on the percentage of your home that space represents.
Do I need to keep records for all my deductions?
Yes. Every deduction you claim needs documentation. For mileage, the IRS requires a log with dates, destinations, and business purpose. For supplies and equipment, keep digital or physical receipts. For home space deductions, documentation of exclusive business use is essential. An expense tracking app makes staying organized throughout the year significantly easier.
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