can I deduct FSA reimbursed medical expense from New Jersey state tax

  • Yes, this is my exact question. In NJ FSA & Cafeteria is counted as part of gross income and thus I pay income tax on both my medical FSA as well as the medical ins premiums I pay. On the Federal return I can't count expenses paid for by FSA or my medical insurance premiums because I'm not taxed on these--this of course makes complete sense. But since I am taxed on these in NJ, common sense says I should be able to include them in my "Nonreimbursed Medical Expenses". Of course there is no common sense in NJ tax law so I don't want to make a wrong assumption. If NJ had any common sense, it wouldn't tax people extra who have to pay for their own medical insurance premiums while not taxing those whose employer pays 100% (e.g. state employees!).
See this link which is opinion from a tax professional -

The later parts cover HSA as well as FSA. Since NJ state does not treat HSA and FSA contributions as pre-tax, we should be able to input "actual" medical expenses (health insurance premiums and copay/coinsurance costs) as deductible medical expenses for NJ state. Please note, it's not actual HSA or FSA contributions but actual medical expenses which are not reimbursed. Of course, we need to file receipts for medical expenses if they're ever needed.
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