Matt,a calendar year taxpayer,pays $11,000 in medical expenses in 2014.He expects $5,000 of these expenses to be reimbursed by an insurance company in 2015.In determining his medical expense deduction for 2014,Matt must reduce his 2014 medical expenses by the amount of the reimbursement he expects in 2015.

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Unlike the casualty loss deduction,the medical expense deduction does not have to be reduced by anticipated recoveries.Matt can include all $11,000 as a medical expense in 2014.

Matt,a Calendar Year Taxpayer,pays $11,000 in Medical Expenses in 2014