If I receive medical insurance reimbursement in 2022 for 2021, what year do I enter it for medical reimbursements?

[q3r-u9p]

My BC/BS gave me $1600 to off set 2021 Medicare Part B premiums in 2022.  Which tax year do I enter it, 2021 or 2022?

[AnnetteB6]

Since you received the reimbursement in 2022, it may need to be included as part of your 2022 tax return.  Even though the reimbursement is for 2021, you should not enter it as part of your 2021 return.

If your 2021 return includes a deduction for medical expenses as a result of claiming the amount you paid for the 2021 Medicare Part B premiums, then the reimbursement may be considered to be income for 2022.  If you do not receive a tax benefit by deducting medical expenses on your 2021 return, then you will not need to account for the reimbursement on your 2022 return at all.

Take a look at the following TurboTax article for more information and an example to better explain the situation:

Do I need to report medical expense reimbursements?

[q3r-u9p]

The chat room message I received while I was doing my taxes, said to I should apply it to my 2021 taxes.  So, I did.

I took the standard deduction for 2021, because it was higher.  Therefore, I should not have to worry about claiming it as income for 2022.

[DawnC]

You don't need to report it as income on either tax return.   

If you are taking the standard deduction on this year's tax return (2021), and the reimbursement is for 2021, you don't need to report the income on this year's return (2021) or next year's.   If you entered it as other income, you can delete that entry.