Article: 50482

Overview 

New Jersey allows a deduction for qualified unreimbursed medical expenses that exceed 2% of your New Jersey gross income. Unlike federal deductions, New Jersey’s medical expense deduction has different rules and requires you to enter state-specific information even if you claimed medical expenses on your federal return. 

To claim this deduction, you must complete the NJ – Medical Expenses Deduction form, typically found in the Schedules tab of your New Jersey return. 

Who Can Claim the Deduction? 

You may qualify to claim the deduction if: 

• You paid out-of-pocket medical expenses during the tax year for yourself, your spouse/civil union partner, or your dependents, and 

• The total unreimbursed medical expenses exceed 2% of your NJ gross income, and 

• The expenses were not reimbursed by insurance, employer plans, or other sources. 

Note: Qualifying expenses include health insurance premiums, doctor/dental visits, hospital stays, prescription medications, and more—see NJ-1040 instructions for full details. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select New Jersey. 

4. Click on the Schedules tab. 

5. Select NJ – Medical Expenses Deduction to open the screen. 

6. Enter all applicable information.  

7. Click Save once complete. 

Additional Resources 

For further guidance, see: 2024 New Jersey Form NJ-1040 Instructions (PDF)