On medical expenses for state of New Jersey can I claim my medical marijuana expense ?

[KatrinaB · Accepted solution]

No, it is not a deduction that is allowed on the federal return because it is considered an alternative treatment method. All of your itemized deductions are carried over from the federal return. Therefore, even though it is considered a legal treatment in the state of new Jersey, it is not an approved medical expense deduction on your tax return.

[nicholeconrad75]

Even on your state medical expense ?

[KatrinaB]

Yes.

[rob1]

Marijuana not deductible for NJ tax purposes at of Today, Jan 21, 2021. 

[email address removed]
3:18 PM (1 hour ago)
to Xxx

To: Xxxxxx Xxxxxx

Per the Division's Regulatory Services Branch:

Medical marijuana is not deductible as a medical expense for New Jersey purposes because it is not deductible for federal purposes.

IRS Publication 502:

Controlled Substances

You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc.) that are not legal under federal law, even if such substances are legalized by state law.

Thank you for contacting the New Jersey Division of Taxation.

(ams)

Disclosure Notice:

The items contained in this communication are provided as general information and are not intended to be tax preparation or tax planning advice. For proper guidance with your specific concern, you should contact a tax professional in good standing.

Privacy Notice:

The content of this e-Mail is solely directed to the addressee and/or the referenced person, and may contain privileged and confidential information protected by state and Federal laws. If you are not the intended recipient, or an authorized employee or agent of the intended recipient, you are not authorized to receive, copy, disseminate or distribute the contents in or parts thereof to any other person or entity. If this communication arrived in error, please immediately contact the sender.

[Cee Jay 1967]

NO, YOU CANNOT AND IF YOU GET AUDITED, YOU'LL BE SORRY YOU DID...

Simple, Really...NJ Tax follow IRS rules

Good 'ol vague Pub 502 HIDES the

good stuff hoping for a big payoff in 4 years from your being misguided. I almost fell for it too. But...

Illegal Operations and Treatments
You can't include in medical expenses amounts you pay
for illegal operations, treatments, or controlled substances
whether rendered or prescribed by licensed or unlicensed
practitioners.

----------------------------------------------------------------------------------------------------------------------

So, we have an intentionally vague and misguided mess here, folks. Simply put, they PURPOSEFULLY do not mention this in the MEDICINE and DRUGS section, which would be the most OBVIOUS place for this important information, instead, they OBSCURE it and tuck it away with the vague sentence ..."You pay for... ...controlled substances (yup, that's NJ Medical Marijuana) whether rendered or prescribed by licensed or unlicensed practitioners. 

Umm, "practitioner" is most thought of as 'holistic' or "homeopathy" (i.e. 'bull sh!t), not a medical doctor, or M.D. , but could be if you are into wordplay, and obviously  so is the IRS - and not to your benefit. 

Ready? 

My deduction: This is a TRAP, folks....

Legally, MARIJUANA IS A CONTROLLED SUBSTANCE.

So, as compassionate as Phil Murphy says he is (and probably is), his government says F-U to federally-illegal criminals who found NATURAL HELP with state-legal cannabis you additionally pay New Jersey with that APPLICATION fee and RENEWAL fee and the cash fortune the doctor is making....that even the feds were squirrely about with that 1937 act... not the mention the HIGH PRICES, and HIGH STATE TAXES PAID - for true medicine the PHARMA companies for once can't get their hands on, but if you get that refund, be prepared to pay it ALL back...unless you know something different...

M.S. sucks.

Medical expenses  On medical expenses for state of New Jersey can I claim my medical marijuana expense ? 

For your federal tax filing, you may not, regardless of w... Yes to both questions. IRS Pub. 502 - Medical and Dental... 

[MechanicIsHere]

The OP asked about taxes for the state of NJ, not their federal return.

You cannot deduct it from your federal return but it is a completely legal and valid medical expense as far as the state of NJ goes.

Most, if not all of the dispensaries will even provide a printout of what you spent with them for the year.

[MechanicIsHere]

No, it is not a "trap."

Medical marijuana is 100% recognized by the state and is legal in NJ.

Federal law doesn't have any impact on it within state boundaries.

[DaveF1006]

No, this is not deductible as marijuana remains illegal federally. Therefore, it cannot be claimed in NJ as a qualified medical expense until NJ passes legislation that specifically allow it as a medical expense deduction.

For more information, please see this link.

[MechanicIsHere]

You are incorrect. Medical marijuana is 100% legal, recognized and protected under state law in NJ.

It is a deductible STATE medical expense. Not federal.

The dispensaries can even provide a statement of such expenses.

[Irene2805]

The instructions for the 2020 NJ 1040, p. 21, state the following:

You can deduct certain unreimbursed medical expenses you paid during the year for yourself, your spouse or domestic partner, and any dependents you claim. You can only deduct expenses that are more than 2% of your gross income. In general, medical expenses allowed for federal tax purposes are allowed for New Jersey tax purposes. These can include:   [highlighting added]

• Physicians, dental, and other medical fees;

• Prescription eyeglasses and contact lenses;

• Hospital care;

• Nursing care;

• Medicines and drugs;

• Prosthetic devices;

• X-rays and other diagnostic services conducted by or directed by a physician or dentist;

• Amounts paid for transportation primarily for and essential to medical care;

• Insurance (including amounts paid as premiums under Part B of Title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care.

Since the instructions say, in general, to use the federal guidelines, I would say that the marijuana expense would not be allowed on a NJ return.  Even if it was allowed, you can only deduct expenses that are more than 2% of your gross income.  If your income is $50,000 you could only deduct the amount over $1,000.

I was unable to find an explicit statement about marijuana considered an acceptable medical expense on the NJ Department of Taxation website.  In the absence of that, I recommend not deducting it.

@MechanicIsHere

[MechanicIsHere]

"In general, medical expenses allowed for federal tax purposes are allowed for New Jersey tax purposes."

Notice that the word "only" appears nowhere in that statement.

The state of NJ recognizes medical marijuana across the board. It even gives discounts on the mmj card to certain people who are on FEDERAL programs.

[Irene2805]

I understand your point, but there is nothing explicit on the NJ Department of Taxation concerning the deduction of medical marijuana on the NJ tax return.  Because of that, as a tax professional, I cannot advise taking the deduction.

Of course, you are free to do whatever you wish on your own return.  If you do find explicit instructions, I would appreciate you letting me know.

@MechanicIsHere

[rob1]

Not deductible.

Here's NJ's response from an online inquiry sent through their Tax Practitioner Hotline: 

[email address removed]
3:18 PM (1 hour ago)
to Xxx

To: Xxxxxx Xxxxxx

Per the Division's Regulatory Services Branch:

Medical marijuana is not deductible as a medical expense for New Jersey purposes because it is not deductible for federal purposes.

IRS Publication 502:

Controlled Substances

You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc.) that are not legal under federal law, even if such substances are legalized by state law.

Thank you for contacting the New Jersey Division of Taxation.

(ams)

Disclosure Notice:

The items contained in this communication are provided as general information and are not intended to be tax preparation or tax planning advice. For proper guidance with your specific concern, you should contact a tax professional in good standing.

Privacy Notice:

The content of this e-Mail is solely directed to the addressee and/or the referenced person, and may contain privileged and confidential information protected by state and Federal laws. If you are not the intended recipient, or an authorized employee or agent of the intended recipient, you are not authorized to receive, copy, disseminate or distribute the contents in or parts thereof to any other person or entity. If this communication arrived in error, please immediately contact the sender.

[MechanicIsHere]

Anti-weed sentiment is still quite prevalent. Ask that same question 10 different times and I bet you get different answers from different people there.

NJ courts have also repeatedly knocked down mmj discrimination at the state level, regardless of federal laws.