I've got another recovery vs. reimbursement scenario. Taxpayer died in 2026. She paid a premium each month for a Medicare supplemental. Her estate received a refund for a portion of her last month of life.
Thinking about it, her medical expenses paid during her lifetime, if they are itemized deductions to the extent they exceed 7.5% AGI threshold, would make the refund a recovery and possibly ordinary income to her estate as the estate is a separate taxpayer. If she won't benefit from itemizing, the recovery won't be taxable, but it's still a recovery and not a reimbursement booked as a contra expense because it was received in the same tax year the expense was paid. _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
