Doctors expense

Forum|Forum|7 years ago
June 4, 2019
1 reply
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I got into a car accident and have hospital bills to pay and therapy bills but the accident was not my fault. I also got a lawyer and he is still working on getting some money back to pay off the bills. Do I still add this to my tax returns?

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If you receive a settlement that includes money for medical expenses you deducted in an earlier year, the amount that you deducted is taxable in the year you receive it, but only to the extent that the deduction actually reduced your taxable income.

If a settlement includes funds for future medical expenses, the amount is not taxable, but you also cannot deduct the future medical expenses except for any amount that exceeds the award.

TurboTax Deluxe will help identify which of your medical expenses are deductible, and guide you through any other deductions and credits you have coming.

Anonymous

Answer

If a settlement includes funds for future medical expenses, the amount is not taxable, but you also cannot deduct the future medical expenses except for any amount that exceeds the award.

TurboTax Deluxe will help identify which of your medical expenses are deductible, and guide you through any other deductions and credits you have coming.