AmyC - I very much appreciate your well reasoned answer. I obviously asked the question because I was already suspicious it might not be a valid deduction. That said, it is still early and I welcome other comments. In other words, I am not ready to answer Turbotax prompts to declare my problem solved.
fwiw - My suspicion the recovery payment may not be deductible is based on settlement money not being taxable and Medicare usually demands only a share of the settlement even when medical bills are greater than the settlement, much greater in this case.
