Matt,a calendar year taxpayer,pays $11,000 in medical expenses in 2016.He expects $5,000 of these expenses to be reimbursed by an insurance company in 2017.In determining his medical expense deduction for 2016,Matt must reduce his 2016 medical expenses by the amount of the reimbursement he expects in 2017.

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For the year 2016, Matt can deduct the full $11,000 in medical expenses. Expected reimbursements are not considered until they are actually received.

Matt,a Calendar Year Taxpayer,pays $11,000 in Medical Expenses in 2016