A relative gave me a $1K check to cover some of my medical expenses. The total medical expenses for my husband, myself, and our kids paid in 2024 exceed 7.5% of our AGI. Do I have to reduce the deduction by $1K? I'm wondering if the check can be considered a gift and I am still able to deduct all the expenses (in excess of 7.5% of AGI).
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IRS Publication 502, page 17, states:
How Do You Treat Reimbursements?
You can include in medical expenses only those amounts paid during the tax year for which you received no insurance or other reimbursement.
In TurboTax Premium Online, the reimbursement may be reported at the screen Tell us about any medical reimbursements. Access the screen under Deductions & Credits and Medical Expenses.
@jc0011 it is a gift and not a "reimbursement".... "reimbursement" would be the insurance or doctor's office giving you money. That is not what is occurring. Someone is giving you cash with no strings attached. That is a gift. You could have used the money for money for something else.
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