1:48pm -0000 05/30/26 Adam H. Kerman <[email protected]> wrote: >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. Here's another wrinkle. There is an election on the taxpayer's final tax return that medical expenses paid by the estate within a year may be deducted on the final tax return instead. The reimbursement, though, is still a recovery, and not a contra expense. _______________________________________________ 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.
