Hello
Will say correct on the Federal explanation of 7.5% above gross income and fortunately haven't had to use this deduction.
Disagree with your response on the NJ Medical deduction.
While completing taxes for a relative noticed that the INSURANCE PREMIUMS (Box 14 Sec 125) paid by the EMPLOYEE are included in the State Wages Box 16 and taxable at the state level. Medical insurance paid by the EMPLOYER are listed in Box 12 DD and are NOT included in the state or federal wages.
If you answer YES to medical expenses while using the deductions section of a NJ Return you are eventually asked to input Medical Insurance Premiums paid by the employee. Easy to skip if someone is healthy and had no medical issues. This resulted in a reduction of around $100 in NJ taxes.
With the premiums almost approaching $4000 in a year the Medical Deduction worksheet shows a Medical deduction of around $2000 resulting in a tax reduction of $100.
IN effect NJ does tax a portion of the Premiums paid by the employee.
Regards, Paul
