Just had a phone call from the grandduaghter of a long time client (so I took the call and the question...) Her husband received an insurance settlement last year. They received the balance after attorney's fees and medical bills including subrogated Blue Cross claims. Their preparer is telling them that they can claim the $59k medical payments while not claiming any of the settlement. My position is that the $59k is not a valid Sch A deduction, but it is a big chunk, so I thought I would throw it out for discussion.
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I say the medical deduction must be reduced by the settlement amount.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
agree
the settlement was far in excess of the medical cost. I am in agreement with your position. If by some chance, the settlement was less than the total medical, then the difference could be deducted.Comment
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I say read the settlement agreement to see what is and what is not reimbursed in it. kaimanaDIY programs are not a replacement for a good tax proComment
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