You would claim it in 2023. Then if the amount is refunded, then you would have to add it back to income in 2024.
"Rev. Rul. 75-302 holds that, under those circumstances, the portion of the lump-sum life-care fee payment that was properly allocable to the taxpayer's medical care was deductible as an expense for medical care in the year paid, subject to the limitations in section 213 of the Code, and that any refund of the entry fee that is received by the taxpayer in a later year must be included in gross income for such later year to the extent attributable to (and not in excess of) deductions allowed under section 213 for any prior taxable year." Tax Notes
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
