Yes, you can claim your medical expenses as itemized deductions as long as you paid them and were not reimbursed for them.
Whether you get a tax benefit from itemizing depends on whether your total itemized deductions are more than your standard deduction, and whether you have a tax liability to reduce by itemizing.
The standard deduction is based on your filing status:
- Single is $12,950,
- Married filing jointly is $25,900
- Head of household is $19,400
To enter medical expenses:
- Select Federal.
- Select Deductions and Credits.
- Expand the list and scroll down to Medical Expenses.
- Enter your expenses in the boxes on each screen.
- Continue until your complete the section.
Please note, it takes a lot of medical expenses to affect your refund because they subtract 7.5 % of your gross income from the total deduction. For example, if your income is $50,000, $3750 will be subtracted from your medical expenses.
If you receive a car accident settlement, it is generally not taxable and you don't have to report it.
- Payments for damage to your car are not taxable.
- Payments for medical expenses are not taxable.
- Payments for pain and suffering are not taxable.
- Payments for lost wages are taxable.
If a part of your settlement is for lost wages, you do need to report that part only as taxable income.
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