are medical bills paid from the proceeds of an insurance settlement tax deductible? I am curious if the medical bills that I paid from the money that I received as a result of an insurance payout from another person's automobile insurance company tax deductible? My lawyer informed me that the money that I had received from the other lady's insurance company was tax-free money. If that is the case...then I am confused if I should even be able to claim the medical expenses which I had paid out of pocket out of this money? please help! thanks! |