A 30-second read by Nicholas Scheibner: New Jersey is certainly not known as a “tax-friendly” state. However, the garden state has a much lower threshold on medical-expense deductions than the federal government. New Jersey allows certain non-reimbursed medical expenses to be deducted after they exceed only 2% of your gross income.
A few examples of things you should make sure you keep track of throughout the year:
- Medicare Insurance Premiums
- Dental Insurance Premiums
- Doctor Co-pays
- Out-of-pocket Prescription Costs
- Eyeglasses and Vision Exams
This is commonly overlooked by taxpayer’s who do not itemize their deductions. However, if you make $60,000 gross income per year, 2% is only $1,200. For most people, their medical expenses will exceed that 2% as long as they keep track of all of them.
As always, if you have any further questions, don’t hesitate to contact the Baron Financial Group Team.
Disclosure: This material is not intended to be relied upon as a forecast, research, tax or investment advice. Please consult your financial planning and tax professional for personal advice.