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It depends. If you received a settlement for physical injury then likely it is not taxable to you. If that is the case, then the medical expenses would not be deductible for the care of the related injuries.
If you receive an amount in settlement of a personal injury suit, part of that award may be for medical expenses that you deducted in an earlier year. If it is, you must include that part in your income in the year you receive it to the extent it reduced your taxable income in the earlier year. This would mean you itemized deductions in the earlier year and were able to use some of your medical expenses as part of those deductions.
If a settlement includes funds for future medical expenses, the amount is not taxable, but you also cannot deduct the future medical expenses except for any amount that exceeds the award.
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