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The medical expense tax credit is a non-refundable tax credit that you can use to reduce the tax that you paid or may have to pay. If you paid for healthcare expenses, you may be able to claim them as eligible medical expenses on your tax return.
Employer contributions to HSAs are included in NJ income and employee contributions are not deductible on the NJ individual tax return. But withdrawals from HSAs for medical purposes are deductible on the NJ tax return (subject to a 2% exclusion) as medical expenses.
Medical Expenses 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.
Claiming medical expenses on your return If the expenses are for you and your spouse, common-law partner or dependent child under 18 years of age, you can make the claim on line 33099 of your return. If they are for any other dependent, they can be claimed on line 33199.
Medical travel rates 2021 Province or territoryMedical travel rate 2021Nunavut60.5Ontario57.5Prince Edward Island53.0Quebec55.09 more rows ?
This threshold amount for the federal part of your tax return (Schedule 1) is either 3% of your net income as reported on your tax return, or $2,479 in 2022 ($2,635 in 2023), whichever is lower. For example, if your net income on your tax return is $40,000, you can deduct expenses in excess of $1,200.