Question

Do I need to report a state disability expense reimbursement for my minor disabled child?

Forum|Forum|4 years ago
February 14, 2022
1 reply
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https://health.maryland.gov/dda/pages/liss.aspx. Through the state's random selection process, we received $2,000 to reimburse for disability expenses for my minor child. Does this have to reported as income and if so, how in the TurboTax desktop app?

TurboTax Online

LenaH

It depends. Is this reimbursement for medical expenses? If the expense and reimbursement both happened in 2021, then yes.

You can either subtract the reimbursement from the expenses you originally paid and enter the new expense amount, or enter it after you've finished entering all of your medical expenses. Either way, the reimbursement simply reduces your medical expense deduction by that amount.

If you got a 2021 reimbursement for medical expenses you paid in 2020 or a prior year, include the reimbursement or the amount of the medical deduction you got in the prior year (whichever is less) on your 2021 taxes. You would enter this under Miscellaneous Income - Other Reportable Income.

If you weren't able to get a deduction for the medical expense (usually because you took the standard deduction in that prior year), then don't mention the reimbursement on this year's return.

For more information, see Where do I enter my medical expenses?

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T

todd_lawson-hotmAuthor

Thanks for the response/info. Both the expense and the reimbursement were in 2021. I did not write off medical expenses for my disabled child. I took whatever the standard deduction is for children. This expense was for a special needs summer camp. I will plan on reporting the other income as you provided. Thanks again.