344 / If benefits received for specific medical expenses exceed those expenses, must the excess be treated as reimbursement for other medical expenses?

Yes.

In computing net unreimbursed expenses for the medical expense deduction, total medical expense benefits received during the taxable year, whether received by a taxpayer or a service provider, must be subtracted from total medical expenses paid.¹ If reimbursements for the year equal or exceed medical expenses for the year, a taxpayer is not entitled to a medical expense deduction. Any excess reimbursement need not be included in a taxpayer’s gross income unless the reimbursements are partially attributable to the contributions of the taxpayer’s employer.²