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21egkirby
New Member

I got in a car accident January 10,2019 my medical expenses were paid via my lawyer from the settlement, can i claim this on my taxes?

 
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3 Replies
MinhT1
Expert Alumni

I got in a car accident January 10,2019 my medical expenses were paid via my lawyer from the settlement, can i claim this on my taxes?

No, you can only claim medical expenses paid-out-pocket, not medical expenses paid by an accident settlement.

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mchurch9
Returning Member

I got in a car accident January 10,2019 my medical expenses were paid via my lawyer from the settlement, can i claim this on my taxes?

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. 

ThomasM125
Expert Alumni

I got in a car accident January 10,2019 my medical expenses were paid via my lawyer from the settlement, can i claim this on my taxes?

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.

 

 

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