Matt, a calendar year taxpayer, pays $11,000 in medical expenses in 2019.He expects $5,000 of these expenses to be reimbursed by an insurance company in 2020.In determining his medical expense deduction for 2019, Matt must reduce his 2019 medical expenses by the amount of the reimbursement he expects in 2020.

Question

Quizplus · Accepted Answer

In determining his medical expense deduction for 2019, Matt should not reduce his 2019 medical expenses by the expected reimbursement in 2020. He should calculate his deduction based on the actual expenses incurred in 2019, without regard to the expected reimbursement.

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