Only expenses that exceed 2% of your income can be deducted. 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.
The New Jersey Gross Income Tax Act does not contain any provisions similar to the Internal Revenue Code which permit an individual to deduct contributions to an IRA. Contributions to an IRA are subject to New Jersey income tax in the year they are made.
§ 414(h), SEP, Federal Thrift Savings Funds, or Individual Retirement Accounts must be included in gross income. Employer contributions to these plans receive tax-deferred treatment.
§ 414(h), SEP, Federal Thrift Savings Funds, or Individual Retirement Accounts. Employer contributions to these plans receive tax-deferred treatment. In addition, both employee and employer contributions to SIMPLE IRAs, SEP, and SARSEP plans are included in taxable wages (neither receive tax-deferred treatment).
New Jersey does not have a standard or itemized deductions, but allows specific deductions for medical expenses and property tax. Unreimbursed medical expenses are deductible in excess of 2% of gross income.
Line 29 – New Jersey Gross Income Subtract line 28c from line 27 and enter the result. If zero or less, make no entry.