You deduct medical expenses in the year that you pay them. However, the additional $5,000 might not make any difference in your 2024 tax. First of all, your total unreimbursed medical expenses are reduced by 7.5% of your Adjusted Gross Income (AGI). Only the remainder is actually deducted from your income. (Enter the full amount that you paid in TurboTax. TurboTax will subtract 7.5% of your AGI.) In addition, medical expenses are an itemized deduction. They will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction.
