HSA useres in NJ

[alinamax]

My employer gives us an option and contributes to HSA if we choose it. However, I live and work in NJ for the company and from my research HSA users do not get the tax withholding benefit in NJ. Is there any way around it? I would love to take advantage of this tax break and my companies contribution to the fund.

thank you in advance

AG

[Bsch4477 · Accepted solution]

No way around it. New Jersey doesn’t conform to federal tax law regarding HSA contributions. 

[Opus 17 · Accepted solution]

If you contribute via pre-tax payroll deduction, you still save the 12-22% federal income tax AND 7.65% social security and medicare tax on your contributions, and your employer contributions are still exempt from federal income tax even though you will pay state income tax.  It's still a pretty good deal.