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posted Jun 1, 2019 10:16:15 AM

Do I need to report/pay income tax on direct reimbursement from drug companies? I pay for my drug out of pocket and the drug company sends me a check to reimburse me.

I take a very expensive drug, and have a high deductible health plan. My pharmacy doesn't accept copay/coupon cards, so the drug company sends me checks to reimburse the purchase at the pharmacy. 

Do I need to pay income tax on this reimbursement money? How do I report it in TurboTax correctly?

Thank you!

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1 Replies
Level 15
Jun 1, 2019 10:16:16 AM

No it is not taxable income as it is a reimbursement of the amount you paid.

You cannot enter the cost as a medical deduction unless it is reduced by the reimbursement also.