@Barbmcm18 wrote:
So, if you are rewarded a settlement, in my case my father passed in 2005 with mesothelioma. Medicare is requesting repayment of their money that was used to pay out medical expenses. Is this amount deductible under medical expenses deducted from settlement monies awarded?
No. You can't take a tax deduction for something that is not part of your taxable income to begin with. Because the wrongful death settlement arising from a physical illness or injury is not taxable, you can't deduct anything from it. You just get less money than you expected. Even though a taxpayer can sometimes deduct medical expenses they pay for a parent's medical care, you can't in this case because the expenses are already being paid with tax-free (non-taxed) money.
