reimbursement of medical costs

[LMathey]

Hope this is a easy question...I am having trouble deciding how to handle. Client is on Medicare and has a Medigap policy. In addition they took out an AFLAC policy that pays them directly for hospital stays they just submit bills and are reimbursed so much a day.

This year husband had a long hospitalization and they received $4,000 from AFLAC. Since these premiums are not deductible would I have reflect any reimbursements on Sch A?

Thanks for any assistance.

[Jesse]

I'm sure someone will jump in and correct me if I'm wrong.

I think you are correct, if the policy premiums were paid by the taxpayer w/ after tax dollars the reimbursement would not be taxable. If they actually paid him like a disability policy he may receive a W-2 but it should have the third party sick pay box checked and a code J w/ the amount listed as nontaxable.

[Gretel]

I agree with the conclusion that this is non-taxable income if the premiums are not deductible.

[LMathey]

Thanks for confirming for me that these monies would be treated differently from any reimbursements received from his medical insurance company...Medigap insurance.

Hope your tax seasons are going well......I am beginning to see the light at the end of the tunnel