The HSA contributions are not counted as medical expenses.
Medical expenses can be deducted from your taxable income.
Health insurance premiums paid with after tax dollars can be claimed as expenses.
HSA contributions are paid with pre-tax dollars if done via payroll.
You get a tax deduction (as HSA contributions) when the contributions are made outside payroll and reported on your tax return.
Because of this, the contributions are not deductible medical expenses. Additionally, expenses paid with an HSA distribution are also not education expenses. These are all paid with pre-tax dollars, so there is no deduction from taxable income.
New Jersey does not recognize HSA contributions as deductions and TurboTax will add the amount of the contributions shown on your W-2 to the state income shown in Box 16 when transferring your income to your New Jersey return.
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