Alfredo1967
Level 3
‎04-24-2019
02:33 PM
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Can a tax payer deduct medical expenses that were paid with a lawsuit awarded to taxpayer?
5 Replies 5
sjrcpa
Level 15
‎04-24-2019
02:54 PM
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If the award included medical expenses, then they were reimbursed.
ex-AllStar
Alfredo1967
Level 3
‎04-24-2019
03:25 PM
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So, even if the expenses were paid to the hospital, they are still not deductable?
sjrcpa
Level 15
‎04-24-2019
03:55 PM
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No. Same as if taxpayer was reimbursed by insurance company. You can only deduct unreimbursed out of pocket medical expenses.
ex-AllStar
Level 15
‎04-24-2019
03:55 PM
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was the settlement taxable income?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
sjrcpa
Level 15
‎04-24-2019
06:05 PM
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Excellent point. Damages on account of personal injury are not taxable.
ex-AllStar