Matt, a calendar year taxpayer, pays $11,000 in medical expenses in 2017. He expects $5,000 of these expenses to be reimbursed by an insurance company in 2018. In determining his medical expense deduction for 2017, Matt must reduce his 2017 medical expenses by the amount of the reimbursement he expects in 2018.

Question

Quizplus · Accepted Answer

Matt should not reduce his 2017 medical expenses by the expected reimbursement. Instead, he should claim the full amount of medical expenses in 2017 and include any reimbursement received in 2018 as income, if it was deducted in the previous year.

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