You'll need to sign in or create an account to connect with an expert.
No, you can only claim medical expenses paid-out-pocket, not medical expenses paid by an accident settlement.
I was actually told that you could even though it came from the settlement. This is because the settlement money was agreed on based on the injuries in the accident not necessarily the bills. If the bills were negotiated lower then the amount that I received from the settlement would have been more.
Therefore I did get penalized for the medical bills in question.
You aren't getting penalized, just the opposite since you get to keep some of the settlement that was to be spent on medical expenses. You can't deduct the medical expenses because you are using them to reduce the settlement proceeds that would otherwise be taxable income.
To deduct them on top of that would be to get a double tax benefit, which is not allowed.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
adamsfam1121
New Member
Raph
Community Manager
in Events
bradjmc5dad
New Member
LK45
Level 1
afrystak89
Level 1