It's ok to take the deduction in 2016. If you get reimbursed in 2017, then you are going to recognize taxable income up to the amount that you deducted in 2016. Please refer to page 19 of Pub 502, under the heading, "what if you receive insurance reimbursement in a later year".<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p502.pdf">https://www.irs.gov/pub/irs-pdf/p502.pdf</a>. Also refer to Pub 525, the section about "recoveries". <a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p525.pdf">https://www.irs.gov/pub/irs-pdf/p525.pdf</a>.
