Do I use what medicare approved to answer the question on what my medical expenses were in 2016?

[jtmckern]

I have used the amount that Medicare approved for what I was billed and then subtracted any reimbursements sent to the providers. Is this wrong?

[BMcCalpin · Accepted solution]

If this calculation ("Medicare approved for what I was billed and then subtracted any reimbursements") comes up with the same number as your out-of-pocket expense, then that's fine.

But as the IRS says: "To the extent you weren't reimbursed, you can deduct what you paid for:" The key here is "what you paid for."

So make sure that after you enter the amount billed and the amount reimbursed, that the result on Schedule A is what you actually paid out-of-pocket.