I recently got a settlement for a medical issue. Out of settlement I had to repay my insurance company for all payments they made regarding health care related to the settlement injury. Can I deduct this subrugation payment as a medical deduction for tax purposes?
2007-04-23 06:33:00 · 2 answers · asked by craig and freidia 1 in Business & Finance ➔ Taxes ➔ United States
No. Your settlement is for physical injuries and as such is not taxable. Therefore the payment of any medical bills from the settlement proceeds is not deductible by you. The bottom line is that your medical bills were paid by someone else and therefore are not deductible by you.
2007-04-23 06:44:09 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
No, but it wouldn't be included as income either. You're only paying back the insurance company for what they paid in the first place, so you aren't out anything, it never came out of your pocket.
2007-04-23 14:14:35 · answer #2 · answered by Judy 7 · 1⤊ 0⤋