Medical Expenses

[jaymevan1]

How do I treat medical expenses incurred in 2019 that may or may not be reimbursed in 2020?

[HelenC12 · Accepted solution]

Here are your options:

1. Enter the medical expenses in 2019. Entering them may not make a difference in your refund or balance due to the high threshold to deduct medical expenses as an itemized deduction. In which case, it doesn't matter if you get reimbursed in 2020. See Why doesn't my refund change after I enter my medical expenses?
2. Enter the medical expenses in 2019. If entering them makes a difference in your refund or balance and you get reimbursed in 2020, you'll need to file an amended return in 2020 for tax year 2019. You'll have to repay some of your refund (or pay additional amount's due) and there may be interest and/or penalties.
3. Don't enter the medical expenses and wait for 2020. If they aren't reimbursed, you can amend your 2019 income tax return for the medical expenses (if they make a difference in your refund or amount due).