Can you deduct the insurance premiums that are deducted from your pay check on the NJ State tax form?

Forum|Forum|6 years ago
June 3, 2019
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TurboTax Deluxe Online

rjs

Employee

The health insurance premiums that are deducted from your pay can be added to your medical expenses for the NJ tax return. While they are usually deducted pre-tax for federal tax, they are after-tax for NJ. On the screen where you enter medical expenses in the New Jersey interview, there is a separate box for "medical insurance premiums included in your New Jersey wages but not in your federal wages on your W-2, and not deducted on Federal Schedule A." The premiums that you enter in that box will be added to the other medical expenses for your NJ tax return. The amount of your deduction on the NJ tax return is your total medical expenses minus 2% of your New Jersey gross income. You enter the full amount of the expenses. TurboTax will do the subtraction.

steph508

can you enter your premiums there if you didn't pay them out of your paycheck?

JB7

Employee

So how about the specific case of LTD (Long Term Disability) insurance premiums? These are *not* pre-tax for the Federal return, but sound like something that could be a deductible medical premium for NJ - but I haven't found anything for this yet. Thanks.

rjs

Employee

@JB7

Long-term disability insurance is not health insurance. The premiums cannot be deducted as a medical expense.

stlucia95

Employee

Thanks. That was not what I was asking.

JungleHermit

Hello,

I wanted to confirm this again as I'm not sure if I am reading this right.

Are we stating that typical pre-tax deductions shown on pay slips for employer sponsored health insurance plans are indeed deductible for NJ return?

i.e.

Medical, Vision, Dental pre-tax deduction from gross pay on a payslip

Thanks,

rjs

Employee

@JungleHermit wrote:

Hello,

I wanted to confirm this again as I'm not sure if I am reading this right.

Are we stating that typical pre-tax deductions shown on pay slips for employer sponsored health insurance plans are indeed deductible for NJ return?

i.e.

Medical, Vision, Dental pre-tax deduction from gross pay on a payslip

@JungleHermit Yes, that's what we are saying.

rrs6565

This is a big deal that I am just hearing about. I have a employer provided health insurance plan, like most people. My share per paycheck cost is very high, over $14k a year. I can now use this as a medical deduction for New Jersey?

Are we sure this not just for self-employed people?

Medical Expenses
You can deduct from your gross income certain medical expenses that you paid during the year for yourself, your spouse or domestic partner, and your dependents. However, you cannot deduct expenses for which you were reimbursed. Only expenses that exceed 2% of your income can be deducted.

Some examples of allowable medical expenses are: payments for doctor's visits, dental care, hospital care, eye examinations, eyeglasses, medicine, and x-rays or other diagnostic services directed by your physician or dentist. Insurance premiums, including amounts paid under Social Security for Medicare, can be used as medical deductions. You also can deduct transportation costs that are allowable on your federal return. If you deduct medical expenses in one year and are reimbursed in the next, you must include the reimbursement as income in the year you receive the payment.

Part of your medical expenses may include Archer MSA Contributions or a Self-Employed Health Insurance Deduction.

https://www.nj.gov/treasury/taxation/njit13.shtml