Workmens comp

[TAXMAN]

Clarification please: In 2017 TP hurt on job. Receives workers comp while TP is off work. Uses $ to pay medical bills(not associated with injury) and mortgage etc. If Workers comp not taxable can tp still deduct expenses on sch A? I think my brain went to lunch and did not come back.

[Terry D EA]

From Pub 502. This would seem to suggest the non-related expenses are deductible regardless of what funds were used to pay them.

Workers' compensation.

If you received workers' compensation and you deducted medical expenses related to that injury, you must include the workers' compensation in income up to the amount you deducted. If you received workers' compensation, but didn't deduct medical expenses related to that injury, don't include the workers' compensation in your income.

[TAXMAN]

From what I can tell TP broke ankle at work. While 90% of medical issues related to that were paid, TP while off had their teeth fixed approx. 3K worth(no Ins for teeth work) all out of pocket. This is what led me to think this thing a little further.

[Terry D EA]

Those expenses are fully deductible on Sch A subject to the threshold limits.