I think I may have screwed up my taxes. I had a supplemental accident insurance policy and had a pretty significant accident last year. I incurred around $5,000.00 in medical bills for my deductible and co-pays. I made a claim and ended up getting a $3,500.00 from my supplemental insurer. They sent me a 1099-MISC. Before I input this as miscellaneous income my wife and I were getting a $960ish return but after I input the money we only got $240ish return. I was thinking that since I actually paid out for my accident upfront, would the check actually be miscellaneous income? Could I have written it off since I paid more in medical bills?