About 5 years ago, a dependent attended a treatment facility in another state. All of the insurance checks were sent to me and I forward them on, since the facility was out of network. We thought this was all over and done, and the facility has since closed its doors.
But, last summer, the insurance company notified me that there were several checks uncashed and it would go to unclaimed funds if we didn't figure out what to do with it. Since then, they have sent me these checks, and the only option is to deal with it as income.
My question: how does the IRS view this scenario? Is this straight-up income? Is there some way I can deduct part or all of it? (We did pay quite a bit of money before insurance kicked in.)
What key words can I use while trying to hunt down answers on my own?
