Medical Expenses

Jan 09, 2009 1 Replies

Taxpayer's unreimbursed medical expenses exceed the 7.5% threshold



Taxpayer sees doctor in December and in compliance with doctor's wishes pays for procedure at time of service and then submits bill to insurer.



Insurer dithers (and questions claim etc.) but finally pays claim in late April (after taxpayer filed 1040).



Does this force a 1040X or can it be considered a negative expense in following year. (taxpayer will be over the threshold in following year.


Neither, assuming we're talking about a 2007 deduction and a 2008 reimbursement. It's a 2008 recovery on line 21 of the 1040 to the extent there was a 2007 tax benefit. See Publications 502 and 525.

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