Paid for physical therapy sessions in 2024 and was reimbursed in 2025

[Wedding5500]

Hello,

2024:  I paid for some physical therapy sessions and included them on my 2024 taxes.  I didn't end up itemizing my Federal return.  I also included those same expenses on my 2024 Arizona State return.

2025:  The physical therapy company credited my credit card $168 (I think they over-charged me per visit).

Question:  Since I included it as a medical expense in 2024, do I now include this $168 reimbursement received in 2025 as income?  If so, where do I put it?  If not, what do I with it? 

I didn't receive anything from the company, the credit just showed up on a credit card statement in 2025.

Thank you for any assistance you can provide.

[DaveF1006]

If you did not claim an itemized expense for it in 2024, do not report it as income because you had no tax benefit.  Even though you reported this on your Arizona return, the deduction only matters if it actually reduced your taxable income, and it didn't. 

Arizona medical deductions are tied to your federal itemized medical expenses. If you didn’t itemize federally, then your medical expenses did not flow through Schedule A,

[Wedding5500]

Arizonans can Itemize their State taxes without having to Itemize on the Federal side.  And we can deduct medical expenses, without having to reduce it by a percentage like on the Federal side.

So in 2024 I did Itemize my Arizona state return and included the $168 as medical expenses.  Then in 2025 the physical therapy company credited my cc back $168.  I need to somehow show this on my Arizona return, don’t I?  For AZ, a Federal Schedule A is prepared (even though I’m not itemizing Federally) and it does flow through to my Arizona Form 140, Schedule A.

I don’t want to add this as Misc. Income on my Federal return as it reduces my refund, but I DO think I need to show it as income on my State return, because I itemized last year and included my medical.

Where in TT can I do this on my Arizona return?

Thanks so much for any help.

@DaveF1006 

[DaveF1006]

You would enter this in as an "other adjustment" in the Arizona state section of the return. What this will do is add $168 of taxable income to your Arizona return but will not impact your federal return. 

@Wedding5500