Treatment of reimbursement for previous year's medical expenses

[gingerpeach123]

Last year (TY 2023) we took the standard deduction, so we did not claim any medical expenses. This year (TY 2024), we are itemizing deductions and have enough medical expenses to include them. Early in 2024, the insurance company sent us a check for reimbursement of some medical expenses from 2023 (in response to a claim we submitted late that year). Do we need to reduce the amount claimed for 2024 medical expenses by the amount of the check?

Thanks!

[MarilynG1 · Accepted solution]

If you are reimbursed in a later year for medical expenses you deducted in an earlier year, you generally must report the reimbursement as income up to the amount you previously deducted as medical expenses.

However, you do not report as income the amount of reimbursement you received up to the amount of your medical deductions that did not reduce your tax for the earlier year, so in your case of using the Standard Deduction for 2023, no, you would not need to report the reimbursement.

@gingerpeach123