A family member has had a surgery at the end of last year. So far the insurance claim has been rejected because the doctor did not report it properly. I have no idea when that will be resolved and what portion the insurance will ultimately reimburse, if any.
Applying for a 6 months extension would solve the problem, but I can't do that for other reasons I don't want to expand on here.
I guess my only option is to file a return with some amount now and then file an amended tax return once I know the exact amount. But what should I claim now?
If I claim the full amount now, based on the fact that the insurance did not reimburse anything, can I be penalized down the line if insurance reimburses it? How quickly would I have to file the amended tax return to show good faith?
Or should I wait to know the exact number before claiming anything?
I asked the IRS, but they said this was tax planning and they couldn't answer these types of questions.
Note: the question is not about the expense admissibility, but how to deal with uncertainty of insurance coverage at the time of producing the return. I've already paid for the expense in 2022 out of pocket.