Hi all.
I am helping someone finish their taxes and want to ensure that I relay the correct information to them so any help is appreciated.
My friend lives (and works) in New Jersey and receives health care through her employer. As such there is an amount deducted from each paycheck. On her W2, it is listed in box 14 as Sec125. Now, I know that this is a pretax deduction on the federal level and thus the amount she paid cannot be deducted on the federal tax return. However, it is not pretax for the state of New Jersey. The total amount that she paid for health care all year, as listed in box 14, is included in the New Jersey wages in box 16. So since it was included as part of her state wages and thus taxed on the state level, can she deduct the amount as a medical expense on her New Jersey state return?
Thank you in advance.
