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AR3
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NJ State Return - "medical expenses" aren't defined until after you affirm you have more expenses that you didn't already deduct from your federal return.

The Federal return has a quick link "What expenses can I deduct?" that mentions you won't be able to use insurance premiums (see attached "Turbo 2017 1 of 3.jpg"). 

Based under that initial federal tax guidance, I have always answered the NJ question with "no", I don't have any more medical expense that exceed the $ amount or % of income noted as there is no additional information provided (see attached "Turbo 2017 2 of 3.jpg"). 

However, NJ does allow you to deduct your medical insurance premiums; but you are told this by Turbo Tax until AFTER you say "yes", to the first NJ Medical expenses screen (see attached "Turbo 2017 3 of 3.jpg").

I never realized this, and most of the NJ friends who use Turbo Tax didn't know about this either. I was able to amend my NJ State Returns for 2015 (got $196 back) and 2016 (got $399 back). My friends have also gotten significant refunds. 

I'm disappointed with Turbo Tax because I'm not an expert and need the guidance on what the NJ definition of Medical Expenses is to answer the right question. Now I'm unable to amend further back than 2015 (as per NJ tax laws) and have over paid my taxes now with Turbo Tax since 2013. I don't know what further recourse I have, but I'm not happy; neither is anyone else I've mentioned this to.

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3 Replies

NJ State Return - "medical expenses" aren't defined until after you affirm you have more expenses that you didn't already deduct from your federal return.

"NJ does allow you to deduct your medical insurance premiums" So does Federal.

NJ State Return - "medical expenses" aren't defined until after you affirm you have more expenses that you didn't already deduct from your federal return.

I have been using TT for NJ returns for years, and have always answered NO to that question. My NJ returns have always been done correctly, so i suspect there is something else going on here. Please contact Customer Service to discuss.

AR3
New Member

NJ State Return - "medical expenses" aren't defined until after you affirm you have more expenses that you didn't already deduct from your federal return.

If you have been answering no to that question and you have medical insurance premiums that exceed 2% of your income as I do, then your NJ taxes have not been done correctly. You can’t deduct for those premiums on your NJ return unless you answer yes. That’s my point.  See the screen shots in order
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