Skip to main content
Level 3
February 9, 2024

medical expenses paid from the personal injury settlement

  • February 9, 2024
  • 1 reply
  • 6 views

If the attorneys paid the medical bills directly to the providers and gave the taxpayer the net amount can the taxpayer itemize a medical deduction for the difference? (ie $150,000 settlement, $30,000 paid to medical providers, net check to client $120,000 non taxable).  The client did not take prior itemized deductions for injury, the injury & settlement occurred in the same year.

1 reply

sjrcpa
Level 15
February 9, 2024

No. If the client got the whole $150K it wouldn't be taxable. If he then paid $30K medical it also wouldn't be deductible.

The net $120K is the same thing.

The more I know the more I don’t know.