Yes, you can claim it on your federal return if you itemize your expenses instead of taking the standard deduction. Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.
Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.
The 2023 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $27,700
- Married Filing Separate (MFS) $13,850
- Head of Household (HOH) $20,800
- Single $13,850
Blind and MFJ or MFS add $1,500
Single or HOH if blind add $1,850
You cannot take a deduction for it on your NJ return.
To Itemize your return, you would select Federal>>Deductions and Credits>>then walk through the deductions and credits section to be sure you get the most itemized deductions. The sales tax specifically will go under Cars and Other things you own in the Personal Property Taxes tab.
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