Medical Expense Reimbursement

If the taxpayer is reimbursed for more than his medical expenses, he may have to include the excess in income.  If the taxpayer paid the entire premium for his medical insurance or all the costs of a plan similar to medical insurance, he generally does not include an excess reimbursement in his gross income.

If the employer or former employer pays the total cost of the medical insurance plan and the employer’s contributions are not included in the employee’s income, he must report all the excess reimbursement as other income.


Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

Serving Henderson, NC, Buncombe County, Polk County, Transylvania County


P: 828-595-2835

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