I received an insurance settlement for pain and suffering from a car accident. My employer subrogated my settlement and took $20,000 for a medical lien against the benefits I used and $22,000 for the disability pay they paid me in 2016. Am I able to claim the $20,000 medical lien as a medical expense? Also, am I able to claim the disability pay? If so do I file an amended return or claim this when I file for 2017? Should my employer provide an updated W2 for last year since they were reimbursed for that amount and I was taxed on it?
