If you are considered self-employed for federal tax purposes, or you received wages in 2022 from an S corporation in which you were a more-than-2% shareholder, you can deduct the amount you paid during the year for health insurance for yourself, your spouse/civil union partner or domestic partner, and your dependents. However, you must report the earnings associated with the excess contributions you withdraw as wages on the 'Wages, salaries, tips, and other employee compensation' line of your tax return. Excess contributions that you withdraw before the due date of your tax return are not taxable. Your contribution cannot be more than 75% of your annual health plan deductible (65% if you have a self-only plan). New Jersey follows the federal rules for deducting qualified Archer MSA contributions. Part of your medical expenses may include Archer MSA Contributions or a Self-Employed Health Insurance Deduction. If you deduct medical expenses in one year and are reimbursed in the next, you must include the reimbursement as income in the year you receive the payment. You also can deduct transportation costs that are allowable on your federal return. Insurance premiums, including amounts paid under Social Security for Medicare, can be used as medical deductions. Some examples of allowable medical expenses are: payments for doctor's visits, dental care, hospital care, eye examinations, eyeglasses, medicine, and x-rays or other diagnostic services directed by your physician or dentist. Only expenses that exceed 2% of your income can be deducted. However, you cannot deduct expenses for which you were reimbursed. You can deduct from your gross income certain medical expenses that you paid during the year for yourself, your spouse or domestic partner, and your dependents. However, the money earned by students in college work study programs is income and is taken into account. Financial aid received by the student is not calculated into your cost when totaling one-half of your dependent's tuition and maintenance. You must have paid one-half or more of the tuition and maintenance costs for the student.The educational institution must be an accredited college or post-secondary school, maintain a regular faculty and curriculum, and have a body of students in attendance.Student must spend at least some part of each of five calendar months of the tax year at school.Student must be under age 22 on the last day of the tax year.

Student must be claimed as a dependent on the tax return.You cannot claim this exemption for yourself, your spouse, or your domestic partner. You can claim an additional $1,000 exemption for each dependent student if all the requirements below are met. You can claim a $1,500 exemption for each child or dependent who qualifiesĪs your dependent for federal tax purposes. You cannot claim this exemption for your domestic partner or dependents. If you are filing jointly, your spouse can also take this exemption if they are a military veteran who meets the requirements. You can claim a $6,000 exemption if you are a military veteran who was honorably discharged or released under honorable circumstances from active duty any time before the last day of the tax year.

If you are filing jointly, your spouse can take a $1,000 exemption if they were blind or disabled on the last day of the tax year. You can claim a $1,000 exemption if you were blind or disabled on the last day of the tax year. If you are filing jointly, your spouse can take a $1,000 exemption if they were 65 or older on the last day of the tax year. You can claim a $1,000 exemption if you were 65 or older on the last day of the tax year. You can claim a $1,000 exemption for yourself and your spouse/CU partner (if filing a joint return) or your Domestic Partner. Part-year residents can only deduct those amounts paid while they were New Jersey residents. New Jersey does not allow federal deductions, such as mortgage interest, employee business expenses, and IRA and Keogh Plan contributions.įull-year residents can only deduct amounts paid during the tax year. New Jersey law provides several gross income tax deductions that can be taken on the New Jersey Income Tax return.

Tax write offs