Hi,
Since your friend is the person who actually ended up paying for the medical, rent, and legal expenses, he/she can deduct the expenses paid for medical expenses as an itemized deduction, if he/she has enough deductions to itemize. He/she can claim the rent and legal expenses if he/she does indeed have a business to deduct them with.
It is possible that cash app may send your friend a 1099-NEC or 1099-MISC, which would require your friend to report the income. However, that would be a question for cash app regarding if they will indeed send your friend a 1099.
Here is a link for contact information regarding cash app:
https://cash.app/legal/us/en-
us/cashappterms#:~:text=You%20can%20also%20call%20us,or%20full%20debit%20card%20number
Thank you,
John
CPA
