Does a 1099-MISC from my insurance company for expense reimbursement go under income miscellaneous or in the medical section for reimbursement? OR, in both places?
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kingcl
New Member

Does a 1099-MISC from my insurance company for expense reimbursement go under income miscellaneous or in the medical section for reimbursement? OR, in both places?

I received a 1099-MISC from my insurance company for reimbursement when I was in the hospital in Florida for being out of the 50 miles radius.  I added this to my income.  When doing my medical expense I added the amount I paid out of pocket, when I got to the end for medical expense, it asked if I received reimbursement and the amount paid, this sent my expense to 0.00.  Do I place the amount paid by my insurance company for reimbursement in both places? or just in the income section for Miscellaneous income?


3 Replies
Hal_Al
Level 15

Does a 1099-MISC from my insurance company for expense reimbursement go under income miscellaneous or in the medical section for reimbursement? OR, in both places?

What box # on the 1099-misc was the money in? You don't usually get a 1099 for a medical insurance company paying benefits for medical services, even in the form of reimbursement.
Other than " being out of the 50 miles radius' was any other explanation for the 1099 provided?
TomYoung
Level 13

Does a 1099-MISC from my insurance company for expense reimbursement go under income miscellaneous or in the medical section for reimbursement? OR, in both places?

Per Publication 17:
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Insurance Reimbursement

You must reduce your total medical expenses for the year by all reimbursements for medical expenses that you receive from insurance or other sources during the year. This includes payments from Medicare.

Even if a policy provides reimbursement for only certain specific medical expenses, you must use amounts you receive from that policy to reduce your total medical expenses, including those it doesn't reimburse.

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Don't enter the 1099-MISC as a form of "income".

Tom Young

Hal_Al
Level 15

Does a 1099-MISC from my insurance company for expense reimbursement go under income miscellaneous or in the medical section for reimbursement? OR, in both places?

I agree with Tom Young, you don't enter the 1099 as income. Unfortunately the IRS may not see it that way.
If you received an erroneous 1099-Misc
You have several choices:
1. Ideally, you get a corrected 1099-misc from the payer
2. Don't report it on your return. Attach a copy of the 1099 and a statement explaining the circumstances. You can't e-file. From the IRS instructions for form 1099-Misc: Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.
3. Report the income as misc line 21 income (enter in TurboTax at the 1099-Misc screen) .  Then enter a line 21 deduction, for the same amount.  In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
      -Misc Income, 1099-A, 1099-C
       - On the next screen, choose – Other reportable income - Enter the number with a minus sign (-) in front. Briefly explain at description.
4. Do nothing and hope you can explain it away when & if the IRS contacts you
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