Client taxable wages for NJ includes Medical FSA and Cafe Plan 125 premium. Can I deduct these premiums as medical expenses?


Thank you.

no.unless the premiums are included in box 1 of the client's W-2. Also, don't include any other medical and dental expenses paid by the plan unless the amount paid is included in box 1 of the client's W-2. for example, any amount over $5k for sec 125 plan should be included in Boxes 1, 3, and 5, as ?wages,? ?social security wages? and ?Medicare wages in general as you know, Pretax deductions are not shown as taxable wages on your client?s W-2 because they are tax exempt. Now that his ER has refunded the money as taxable, the ER must include it in the employee?s taxable year-to-date wages so it shows as such on his W-2.in this case, fsa and sec 125 plan premiums are


Under IRS guidelines, pretax medical contributions are excluded from fed income tax,fica taxes. State and local income tax rules for pretax medical deductions vary. In many cases, the same treatment as federal law applies. however, you may contact the nj state revenue agency for clarification, because exceptions may apply.