We were a part of a health care sharing network in 2023. Most of the expenses were reimbursed. I assume this isn't tax deductible but want to be sure.

[stratman1986]

To be clear, this is not traditional insurance and I am only referring to the medical expenses (hospitalization and a surgery) in 2023, not the monthly share amount we pay as a part of the health care sharing program.

[xmasbaby0]

You cannot deduct any medical expenses that were covered by insurance or reimbursed to you by some other source. Only the amounts you actually paid out of pocket can be entered.  The medical expense deduction is a very tough one to use.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2023—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

[stratman1986]

I really appreciate this and makes complete sense. Is there somewhere in the IRS regs that specify "or being reimbursed to you by some other source?"

[xmasbaby0]

https://www.irs.gov/pub/irs-pdf/p502.pdf

From that publication

What Expenses Can You Include This Year? You can include only the medical and dental expenses you paid this year, but generally not payments for medical or dental care you will receive in a future year. (But see Decedent under Whose Medical Expenses Can You Include, later, for an exception.) This is not the rule for determining whether an expense can be reimbursed by a flexible spending arrangement (FSA). If you pay medical expenses by check, the day you mail or deliver the check is generally the date of payment. If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged. If you didn't claim a medical or dental expense that would have been deductible in an earlier year, you can file Form 1040-X, Amended U.S. Individual Income Tax Return, to claim a refund for the year in which you overlooked the expense. Don't claim the expense on this year's return. Generally, a claim for refund must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. You can't include medical expenses that were paid by insurance companies or other sources. This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services.

[stratman1986]

Thank you for the help!!!