Yes, you could report it as Reimbursed Deduction IF the expense was claimed as a Medical Deduction in the prior year. In either case, the income is taxed the same way by the IRS.
If it was not (Standard Deduction used, not Itemized), then you don't need to report the reimbursement on your 2023 return. Save the documentation that came with the refund, just in case.
@fred-frahm
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