2024 or 2025 Tax Records question

[Priller]

Purchased a Breast pump for pregnant wife in 2024. Our Medical Insurance company issued a reimbursement check on 12/24/2024. 

Deposited Medical Insurance Reimbursement check into our Joint checking account in January of 2025.

Should I keep records under my 2024 Tax records as a 2024 transaction or under my 2025 Tax records as 2025 transaction for a 2024 event/reimbursed medical expense?

Thank you

[robtm]

Since the check is dated in 2024 it would go on your 2024 records. 

[Priller]

Although, we deposited the check in 2025 (income for 2025)?

A bit confusing...

[rjs]

Yes. It actually doesn't matter when the insurance company issued the check or when you deposited it. The insurance reimbursement is not income. It's a reduction of your 2024 deductible medical expenses. In general you deduct medical expenses in the year that you pay them. If a medical expense was later reimbursed, it doesn't matter when it was reimbursed. If a 2024 expense was reimbursed, your 2024 deduction is reduced by the amount of the reimbursement, no matter when you got the reimbursement.

From what you wrote it's not clear whether the insurance reimbursed the full cost. If so, none of this matters because you don't have anything to deduct, so you don't need any records.

[VolvoGirl]

And it depends if you were able able to itemized deductions and deduct the Medical Expenses instead of taking the Standard Deduction for 2024.   Which did you take?   If you itemized the full amount and later got a reimbursement then it would be income.  Most people are taking the Standard Deduction now.

For 2024 the standard deduction amounts are:

Single 14,600 + 1,950 for 65 and over or blind (16,550)

HOH 21,900 + 1,950 for 65 and over or blind (23,850)

Joint 29,200 + 1,550 for each 65 and over or blind (30,750/32,300)

Married filing Separate 14,600 + 1,550 for 65 and over or blind (16,150)

[rjs · Accepted solution]

If you already filed your 2024 tax return with an itemized deduction for the full amount of a medical expense, and you later receive a reimbursement for part or all of the expense, then the reimbursement is what's called an itemized deduction recovery. You do not amend the 2024 tax return that you already filed. You have to report the itemized deduction recovery as income on your tax return for the year that you received the reimbursement, but only to the extent that you actually received a tax benefit from deducting the amount that was later reimbursed. That gets you into a complicated calculation. But this does not seem to be your case. If I understand correctly, you have not yet filed your 2024 tax return, so if you are claiming medical expenses on your 2024 tax return, you can simply claim only the amount that was not reimbursed.

Note that on your federal tax return none of this matters unless you are claiming itemized deductions for 2024 instead of the standard deduction, and your total deductible medical expenses are more than 7.5% of your Adjusted Gross Income (AGI). It might matter on your state tax return if your state allows a deduction for medical expenses with a lower threshold.

[Priller]

Thank you all for the fantastic responses.

The Intuit Turbotax Community is awesome indeed!