Question 29 ?of 40.Leon was reimbursed in 2023 ?by his insurance company for a medical...
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Leon was reimbursed in ?by his insurance company for a medical expense that he had previously deducted on his ?Schedule A Form ?Itemized Deductions. What is the tax treatment of the recovered medical expense, if any?
The amount recovered is not taxable and should not be included on the ?return.
The amount recovered should be deducted on Schedule A Form ?Itemized Deductions, as a medical expense again in
The recovery is includable in income in the year received up to the amount by which the deduction or credit claimed reduced taxes in the prior year.
The ?return must be amended to remove the medical expense that was recovered.
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