Matt,a calendar year taxpayer,pays $11,000 in medical expenses in 2015.He expects $5,000 of these expenses to be reimbursed by an insurance company in 2016.In determining his medical expense deduction for 2015,Matt must reduce his 2015 medical expenses by the amount of the reimbursement he expects in 2016.

Question

Quizplus · Accepted Answer

Matt should not reduce his 2015 medical expenses by the expected reimbursement. He can claim the full $11,000 as a deduction in 2015 and report the $5,000 reimbursement as income in 2016 when it is received.

Matt,a Calendar Year Taxpayer,pays $11,000 in Medical Expenses in 2015