Expenses paid through an HSA are never deductible, if have already received the tax benefit of the HSA contribution. The HSA contribution will show in box 12 of your W-2 with code W. This will then populate to your state return. These contributions are reducing the income reported in box 1 of your W-2, thereby reducing your taxable income for the state, if it is allowed in your state.
The contributions will be reducing your NY income, as it was NY-sourced income. Employer contributions to HSAs are included in NJ income and employee contributions are not deductible on the NJ individual tax return.
Expenses paid through an HSA are never deductible, if have already received the tax benefit of the HSA contribution. The HSA contribution will show in box 12 of your W-2 with code W. This will then populate to your state return. These contributions are reducing the income reported in box 1 of your W-2, thereby reducing your taxable income for the state, if it is allowed in your state.
The contributions will be reducing your NY income, as it was NY-sourced income. Employer contributions to HSAs are included in NJ income and employee contributions are not deductible on the NJ individual tax return.