I'm a New Jersey resident. I'm trying to figure out what medical costs can be deducted on my NJ State return.
So say on my W2 at Box 16 (State wages, tips, etc.) it says $70,000.00, and at Box 1 (Wages, tips, other comp) it says $63,000.00.
In the Gross Pay adjustment/calculation, I have
Less Other Cafe 125 - $3,500.00 (health, dental, vision, etc. insurance premiums that come out of my paycheck)
Less Cafe 125 HSA (Box 12 with Code 'W') - $3,500.00 (HSA contributions by me that come out of my paycheck)
For a total of $7,000 for the Cafe 125 (which would be the difference between the reported NJ State Wages in Box 16 less the reported Federal Wages in Box 1).
For my NJ State return, am I allowed to deduct or get credit for the $7,000.00 of Cafe 125 items (health insurance premiums + HSA employee contributions) plus whatever out-of-pocket medical bills incurred (doctor's visits, medications, etc)? I've made no distributions from the HSA account.
