Matt, a calendar year taxpayer, pays $11,000 in medical expenses in 2018. He expects $5,000 of these expenses to be reimbursed by an insurance company in 2019. In determining his medical expense deduction for 2018, Matt must reduce his 2018 medical expenses by the amount of the reimbursement he expects in 2019.

Question

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Matt should not reduce his 2018 medical expenses by the expected reimbursement. He can claim the full amount in 2018 and report the reimbursement as income in 2019 if it is received.

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