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Deductions & credits
@Knercer52 wrote:
My husband received settlement but they deducted a few medical bills is that deductible from our taxes
Generally no. A legal settlement for physical injury, including medical expenses, is not considered taxable income. Therefore, you can't take any deductions, because you are paying those expenses with money that is already tax-free. If you received the cash, then paid medical bills, it's not an allowable deduction because the money was tax-free in the first place, and if the medical reimbursement was subtracted from the settlement and paid directly to the insurance company or doctor and you got the leftover funds, it's still not deductible for the same reason.
‎October 4, 2022
11:19 AM