ARIZONA - HELP PLEASE - Paid for physical therapy sessions in 2024 and was reimbursed in 2025

Forum|Forum|3 months ago
April 6, 2026
1 reply
94 views

Hello,

2024: I paid for some physical therapy sessions and included them on my 2024 taxes. I didn't itemize my Federal return. By entering the medical expenses on my 1040, they flow through to my AZ 140 return, where I am allowed to itemize (even w/out doing it on the 1040), and I can deduct medical expenses without the percentage limit like on the Federal return.

2025: The physical therapy company credited my credit card $168 (I think they over-charged me per visit).

Question: Since I included it as a medical expense in 2024 where it lowered my taxable income, where in TT do I now include this $168 reimbursement as income for 2025?

I didn't receive anything from the company, the credit just showed up on a credit card statement in 2025.

Thank you for any assistance you can provide.

Best answer by BillM223

In the Arizona interview, after the section that asks about all sorts of adjustments to income, you will see a screen with the title "Other Adjustments".

Other adjustments may be necessary. For example, you must add-back related to income that Arizona does not tax..."

Here add your $168 add-back for the reimbursement. Note that this will be reported only on your state return, not on the federal.

See AZ instructions for 140 page 14:

D. Items Previously Deducted for Arizona Purposes Arizona statutes prohibit a taxpayer from deducting items more than once. If your Arizona taxable income includes items previously deducted for Arizona purposes, you must add such amounts to your Arizona gross income.

BillM223Answer

Level 15

In the Arizona interview, after the section that asks about all sorts of adjustments to income, you will see a screen with the title "Other Adjustments".

Other adjustments may be necessary. For example, you must add-back related to income that Arizona does not tax..."

Here add your $168 add-back for the reimbursement. Note that this will be reported only on your state return, not on the federal.

See AZ instructions for 140 page 14:

D. Items Previously Deducted for Arizona Purposes Arizona statutes prohibit a taxpayer from deducting items more than once. If your Arizona taxable income includes items previously deducted for Arizona purposes, you must add such amounts to your Arizona gross income.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Wedding5500Author

Level 4

@BillM223,

Can't thank you enough for this info - I absolutely could not figure out how to do this addition back onto only my AZ income and completely bypass my 1040 return.

Thank you!