I was hit by a semi, after years of litigation I was awarded
$100K out of court. $30K went to attorneys fees and $23,6K went to pay medical fees. Is this $ tax dedeuctable as medical costs???
Judy is correct. It would be great if you got tax free money(personal injury settlement) and deduct expenses paid with that money.
If you paid and deducted medical expenses that you later got reimbursed for, you may have to include the reimbursement as income in the year received up to the amount of the deduction for those expenses. See Publication 525 the section under "Recoveries"
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