Q, Can I deduct medical expenses that were reimbursed by my employer, if the reimbursement was included as taxable income on my W-2.
A. Yes
As others have said, that situation is highly unusual. But, as you describe it, your medical expenses are deductible, , since the expenses were paid with your after tax money.
You may only deduct the portion of medical expenses that exceed 7-1/2% of Adjusted Gross Income (AGI) and then only as an itemized deduction. Your net total itemized deduction would then have to exceed your standard deduction ($12,950 Single, $25,900 married, under age 65) before you saw any benefit.
