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hobbesjph
New Member

I had a vehicle/motorcycle accident in 2016. Are they special parts in Turbo Tax for this? Medical bills, workers comp income, etc.

 
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bwa
Alumni
Alumni

I had a vehicle/motorcycle accident in 2016. Are they special parts in Turbo Tax for this? Medical bills, workers comp income, etc.

Those medical bills paid by you would be a deductible medical expense. Medical expenses are only deductible if you itemize deductions, and are only deductible in the year paid. If you do itemize, only the portion of your total medical expenses that exceed 10% of your adjusted gross income are deductible. (That limit is 7.5% if either you are your spouse is age 65 or older. For those taxpayers, the 10% limit does not take effect until 2017.) Medical expenses are under the deductions and credits tab, then explore on my own, then medical.

Worker's compensation is generally not taxable. From IRS's Publication 525:

Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. The exemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.




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2 Replies
bwa
Alumni
Alumni

I had a vehicle/motorcycle accident in 2016. Are they special parts in Turbo Tax for this? Medical bills, workers comp income, etc.

Those medical bills paid by you would be a deductible medical expense. Medical expenses are only deductible if you itemize deductions, and are only deductible in the year paid. If you do itemize, only the portion of your total medical expenses that exceed 10% of your adjusted gross income are deductible. (That limit is 7.5% if either you are your spouse is age 65 or older. For those taxpayers, the 10% limit does not take effect until 2017.) Medical expenses are under the deductions and credits tab, then explore on my own, then medical.

Worker's compensation is generally not taxable. From IRS's Publication 525:

Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. The exemption also applies to your survivors. The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.




hobbesjph
New Member

I had a vehicle/motorcycle accident in 2016. Are they special parts in Turbo Tax for this? Medical bills, workers comp income, etc.

The bold sentence seems like it could be a start.  Thanks for answer.  Everything has been covered by insurance so probably next to nothing I need to do.  Thx
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