Can you deduct the insurance premiums that are deducted from your pay check on the NJ State tax form?

[PattiF]

No, that is not the case with the dependent care FSA. This is a pre-tax benefit account that is used for Dependent Care and is not eligible for state credit.

[JB7]

So how about the specific case of LTD (Long Term Disability) insurance premiums? These are *not* pre-tax for the Federal return, but sound like something that could be a deductible medical premium for NJ - but I haven't found anything for this yet. Thanks.

[rjs]

@JB7 

Long-term disability insurance is not health insurance. The premiums cannot be deducted as a medical expense.

[JungleHermit]

Hello,

I wanted to confirm this again as I'm not sure if I am reading this right.

Are we stating that typical pre-tax deductions shown on pay slips for employer sponsored health insurance plans are indeed deductible for NJ return?

i.e.

Medical, Vision, Dental pre-tax deduction from gross pay on a payslip

Thanks,

[rjs]

---

@JungleHermit wrote:

Hello,

I wanted to confirm this again as I'm not sure if I am reading this right.

Are we stating that typical pre-tax deductions shown on pay slips for employer sponsored health insurance plans are indeed deductible for NJ return?

i.e.

Medical, Vision, Dental pre-tax deduction from gross pay on a payslip

---

@JungleHermit  Yes, that's what we are saying.

[stlucia95]

Thanks.  That was not what I was asking.

[rrs6565]

This is a big deal that I am just hearing about. I have a employer provided health insurance plan, like most people. My share per paycheck cost is very high, over $14k a year. I can now use this as a medical deduction for New Jersey?

Are we sure this not just for self-employed people?

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.

Some examples of allowable medical expenses are: payments for doctor's visits, dental care, hospital care, eye examinations, eyeglasses, medicine, and x-rays or other diagnostic services directed by your physician or dentist. Insurance premiums, including amounts paid under Social Security for Medicare, can be used as medical deductions. You also can deduct transportation costs that are allowable on your federal return. If you deduct medical expenses in one year and are reimbursed in the next, you must include the reimbursement as income in the year you receive the payment.

Part of your medical expenses may include Archer MSA Contributions or a Self-Employed Health Insurance Deduction.

https://www.nj.gov/treasury/taxation/njit13.shtml

[tenniseric98]

Hi, 

Did you figure this out?

Also, for that phrase - "including amounts paid under Social Security for Medicare" - what does this even mean?

Is that referring to Box 6 on my W-2 (total YTD for Fed MED/EE on my last paystub of 2024?)

Or is this referring to individuals who are collecting Social Security and paying for Medicare premiums?

[rjs]

@tenniseric98 

"Amounts paid under Social Security for Medicare" applies to people who are collecting Social Security benefits. It means Medicare premiums that are deducted from your Social Security benefits, as shown under "Description of amount in box 3" on your Form SSA-1099. It does not refer to anything on a W-2.