Question

NJ medical deduction calculation

Forum|Forum|6 years ago
January 26, 2020
1 reply
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Regardless of how high of the amount I enter into the NJ Medical expense, the NJ State Tax due amount doesn't change more than a few dollars. I even put an over the top amount $10,000 just to test, and the change was few dollars. Anyone run into this issue? I am in the 6.37% NJ State tax bracket and once I clear the 2% medical expense threshold, I would think my tax due would be lowered by 6.37% of on the dollar. But it is not calculating this way.

TurboTax Deluxe Online

J

JFRAHER

I tested this and the NJ medical deduction calculated properly for me.

It was tested a few different ways

First by entering the medical expenses in the Federal interview
I then went into the NJ interview and added the insurance premiums that are taken out pre-tax for Federal but after-tax for NJ
Then I went and removed the expenses from the Federal interview and came back and added them back on NJ.
At all times the expenses/ tax results were correct.

I would remove all medical expenses and then add them back in.

S

solaris2000Author

Thank you for your recommendation. I tried what was suggested and I am still not seeing it calculating the right way. Can it do something with living in state of NJ but all income coming from working in NY State? The amount also does not meet the Federal Medical deduction of 7.5% threshold but does exceed 2% NJ threshold.