gsa11
Level 3

I filed a client's return with standard deduction on the federal return and itemized on the California return.  Client just informed me that they very recently received (in 2023) an insurance reimbursement for part of the cost of one of the medical expenses deducted in 2022.  Because the reimbursement occurred after year end, my thought was that the reimbursement should be set against current year itemized medical expenses to reduce them.  Or are we supposed to amend the prior year tax return and adjust the expense?

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