Can I claim as a deduction insurance premiums paid out of my paycheck for NJ state taxes? If so, where do I put in turbo tax? Nonreimbursed or the 2nd category listed

[mgoldenberg]

The second category is NJ medical insurance premiums included in your NJ wages buy not in your federal wages on your W2 & not deducted in Federal Sched A

[ErnieS0]

It depends on whether you paid your NJ medical insurance premiums with pre-tax or after-tax money.

If you paid with pre-tax money (more common), your medical insurance premiums would be deducted from your taxable income on your W-2 so you would not be able to take a deduction.

If you are not sure, contact HR or your payroll department.

If you paid with after-tax money and did not include those payments in Medical in Deductions & Credits, enter those premiums on the "Medical Expenses" screen in the New Jersey section. 

TurboTax automatically transfers any medical expenses you listed in Deductions & Credits to New Jersey whether you itemize your deductions or not, so don’t double-enter.

[LadyHerbie]

This is confusing to me - 

My premiums were paid with pre-tax dollars on my paycheck and were indeed reduced from federal wages on my W2.  They did not however reduce my NJ wages, so they were NOT deducted from my taxable NJ income.  There is a variance on my W2 between my federal and NJ wages and the difference is everything for medical premiums, including HSA contributions.  So while I paid with pre-tax money, it's not counting it as such for the NJ taxable wages.  Therefore, shouldn't I be able to claim these premiums as deductions for NJ tax?

Thanks.

[Mike9241]

NJ does not allow a wage reduction for HSA or medical insurance premiums taken out of your paycheck. Rather you are allowed to deduct as a medical expense those insurance premiums. the HSA contributions are not deductible. Rather you also get a deduction for medical expenses paid directly and those paid out of the HSA net of any insurance reimbursements. 

per NJ DOR

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.

[TomD8]

"Therefore, shouldn't I be able to claim these premiums as deductions for NJ tax?"

Yes, if NJ taxed the premiums.  NJ's rule is that 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.

[LadyHerbie]

Thanks Very Much! - 

I questioned my accountant and his reply:

NJ health insurance premiums are deductible on the NJ tax return only along with any out of pocket medical expenses paid directly or through the HSA account.  HSA contributions are not deductible as NJ medical until paid out.  

Everything else I've read, including both your responses lead me to believe he's incorrect regarding the premiums and leaving a few hundred dollars on the table.