Can I claim a tax deduction for a physical injury?

[rend848490]

Can I claim a tax deduction for medical expenses my lawyer deducted for my physical injury lawsuit?

[Mike9241]

please clarify. why would your lawyer deduct your medical medical expenses. 

[DianeW777 · Accepted solution]

It depends.  If you received a settlement for physical injury then likely it is not taxable to you.  If that is the case, then the medical expenses would not be deductible for the care of the related injuries.

If you receive an amount in settlement of a personal injury suit, part of that award may be for medical expenses that you deducted in an earlier year. If it is, you must include that part in your income in the year you receive it to the extent it reduced your taxable income in the earlier year.  This would mean you itemized deductions in the earlier year and were able to use some of your medical expenses as part of those deductions.

• IRS Publication 502

If a settlement includes funds for future medical expenses, the amount is not taxable, but you also cannot deduct the future medical expenses except for any amount that exceeds the award.

• Deducting Medical Expenses for a Major Injury

Please add any additional details if we can be of assistance.

@rend848490 

[rend848490]

He sent me to all these hospitals, clinics, and chiro for treatments. I was awarded about $35K due to the faulty driver only having limited insurance. My lawyer deducted his fees and all the medical expenses I incurred. My medical expenses were reduced to $11K plus, I received $8K which was not enough to buy me a car to replace my car which was totaled out. I wanted to know if I can deduct my $11K medical expenses so I can reduce my tax due.

[rend848490]

My accident only happened early last year. My claim closed this year. I was going to claim it for 2023. However, I will not claim the deduction if I still have to add it next year for 2024. Thank you so much for the clarification.

[Cynthiad66]

If the $11K has been reimbursed as a part of your settlement, then you cannot deduct the expenses.

@rend848490