Retirement tax questions

It depends.  If you have a medical bill that is reimbursed to you in full, then you cannot deduct that medical bill on your return.  If you are not reimbursed for the entire amount, then you can deduct the amount you were out of pocket for the bill.  

You can accomplish the latter one of two ways:

  1. Enter 100% of the bill and then report your reimbursement.
  2. Enter only the difference between what you were paid and what you were reimbursed.

If the reimbursement is for an amount you took as a deduction in 2017, then you would have to treat the reimbursement as Other Income.  To do this in TurboTax,

  • In your open Federal return, choose the tab for Wages & Income
  • Scroll down to Less Common Income and Show more
  • Start/Revisit Miscellaneous Income and choose Other reportable income 
  • Say Yes to continue to the screen "Other Taxable Income". Enter your item description and the amount.

View solution in original post