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I paid large med. expenses in late 2016 and reimbursed in early 2017. Should I take the deduction on 2016 taxes? What happens to 2017's filing?

I'm concerned that I'll receive a huge reduction in taxes for the 2016 year and then I will owe a considerable amount next year (if that is the correct treatment for the two consecutive tax years in this situation). 

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MargaretL
Expert Alumni

I paid large med. expenses in late 2016 and reimbursed in early 2017. Should I take the deduction on 2016 taxes? What happens to 2017's filing?

I don't recommend that you take your deduction for medical expenses... Yes, you can deduct your expenses for 2016, but you will have to include them as income on your 2017 tax return since you have been reimbursed and yes, you may have a considerable amount of tax due next year, if the amount will raise you to a higher tax bracket...

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1 Reply
MargaretL
Expert Alumni

I paid large med. expenses in late 2016 and reimbursed in early 2017. Should I take the deduction on 2016 taxes? What happens to 2017's filing?

I don't recommend that you take your deduction for medical expenses... Yes, you can deduct your expenses for 2016, but you will have to include them as income on your 2017 tax return since you have been reimbursed and yes, you may have a considerable amount of tax due next year, if the amount will raise you to a higher tax bracket...

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