Top Tax Deductions for Wag! Walkers

As a Wag! caregiver, you’re considered an independent contractor. That means you’re responsible for your own taxes, but you also get access to valuable business deductions that traditional employees don’t. Tracking and claiming these deductions can significantly lower your tax bill and increase your take-home pay.

Below are the most relevant tax deductions for Wag walkers, plus tips on how to track and claim them properly.

Vehicle expenses and mileage

If you drive to dog-walking appointments, the cost of using your vehicle is one of your biggest write-offs.

IRS standard mileage rate

The IRS mileage rate is the easiest way to deduct driving expenses.This rate covers:

• Gas
• Oil changes
• Insurance
• Depreciation
• Maintenance and repairs

If you choose this method, you must track all your work-related miles with a log or a mileage tracking app for Wag! like Everlance. Personal miles don’t count.

Actual expense method

Instead of using the mileage rate, you can deduct a percentage of your actual vehicle expenses. Eligible expenses include:

• Gas and fuel
• Insurance premiums
• Repairs and maintenance
• Oil changes
• Car washes
• Registration fees
• Lease payments or depreciation

You’ll need to calculate what percentage of your total driving was for Wag-related work. Then apply that percentage to your annual vehicle costs.

Expenses you can deduct regardless of method

No matter which method you choose, you can also deduct:

• Parking fees related to client visits
• Tolls while driving to or from appointments

Platform fees and commissions

Wag! typically takes a flat commission from each walk, sitting, or service you complete. This fee is subtracted before the funds hit your account and should be considered a business expense. 

You can find this breakdown in the Wag! app or your year-end tax summary. Make sure to document these fees to reduce your taxable income.

Phone and data plan

Your phone is your primary work tool for accepting requests, communicating with pet owners, and navigating to jobs. You can deduct:

• A portion of your monthly phone bill
• Data usage if you pay for a separate plan
• Work-related phone accessories like chargers or mounts

If your phone is used for both personal and business, deduct only the business-use percentage.

Pet supplies and care items

If you bring your own items to care for dogs, you can deduct those too. Examples include:

• Extra leashes or harnesses
• Dog treats used during walks
• Waste bags or pooper scoopers
• Pet-safe cleaning supplies

These are considered business supplies if you purchase them specifically for client jobs.

Business insurance

If you carry your own liability insurance as a dog walker, the premium is deductible. Some walkers opt for additional coverage beyond Wag’s platform protections for peace of mind.

Home office expenses

If you use part of your home exclusively to manage your Wag business, like scheduling clients, keeping records, or managing your income, you may qualify for a home office deduction.

Deductible expenses include:

• A percentage of rent or mortgage
• Utilities like electricity or internet
• Office supplies used to run your business

To qualify, the space must be used regularly and only for work. Most Wag! Caregivers don’t find enough use to qualify for this.

Marketing and business development

Do you advertise your services beyond Wag? You may be able to deduct:

• Business cards or printed flyers
• Your own website or hosting fees
• Paid advertising on local directories or social media

These deductions apply even if your client base starts on Wag but expands independently.

Education and training

If you take any courses to improve your skills as a walker or pet care professional, those costs may be deductible. Examples:

• First aid certification for animals
• Dog behavior or training courses
• Online business management courses

Subscriptions and tools

Any tools you use to manage your business count if they’re business-related. Examples include:

• A subscription to Everlance for Wag! mileage and expense tracking
• Invoicing or bookkeeping software
• Pet care industry tools or memberships (if not already covered by Wag)

Health insurance premiums

If you are self-employed and not covered by a spouse’s plan, you may be eligible to deduct your health insurance premiums. This includes medical, dental, and vision insurance.

How to track your tax deductions

Accurate recordkeeping is key. To get the most from your deductions:

• Use a mileage tracking app like Everlance to log drives automatically
  
• Take photos of receipts or upload them to your app
  
• Categorize expenses by type: vehicle, supplies, phone, etc.
  
• Set aside time each week to review and organize your records
  

The IRS requires documentation to back up all deductions, so don’t rely on estimates or memory.

How to claim your tax deductions

At tax time, you’ll file as a self-employed individual using IRS Form 1040 and Schedule C. You’ll report your total Wag income, subtract your business expenses, and pay taxes on the difference.

You can:

• Use tax software with a self-employment option
  
• Hire a tax professional familiar with gig work
  
• Export your mileage and expense reports from Everlance to make filing easier
  

Common mistakes Wag walkers make

• Not tracking mileage accurately: This is your biggest deduction. Don’t rely on guesswork.
  
• Mixing personal and business expenses: Keep everything separated so your deductions are clean and defensible.
  
• Skipping small expenses: Dog treats and waste bags may seem minor, but they add up.
  
• Forgetting health insurance or training costs: These are often missed but valuable.