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Medical Expenses

Alfredo1967
Level 3

Can a tax payer deduct medical expenses that were paid with a lawsuit awarded to taxpayer?

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5 Comments 5
sjrcpa
Level 15

If the award included medical expenses, then they were reimbursed.

The more I know, the more I don't know.
Alfredo1967
Level 3

So, even if the expenses were paid to the hospital, they are still not deductable?

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sjrcpa
Level 15

No. Same as if taxpayer was reimbursed by insurance company. You can only deduct unreimbursed out of pocket medical expenses.

The more I know, the more I don't know.
Just-Lisa-Now-
Level 15
Level 15

was the settlement taxable income?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
sjrcpa
Level 15

Excellent point. Damages on account of personal injury are not taxable.

The more I know, the more I don't know.