Welcome Guest. Register Now!  


New Jersey NJ


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-28-2020, 03:36 PM
Member
 
Join Date: Feb 2013
Posts: 40
Medical FSA and Cafe Plan 125

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


Thank you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-01-2020, 08:33 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,254
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply

« Form 8867 | - »

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Medical expenses Poonam Filing Requirements 1 07-28-2018 03:49 AM
Medical Needs Trust Trust22 Limited Liability Company 3 04-16-2015 07:37 PM
Medical expenses... JoeNational For 2013 4 01-08-2014 04:28 PM
Medical Deductions jesto68 For 2013 1 11-05-2013 03:41 AM
Whose Medical Expenses Can I Include under Medical Expenses on Schedule A? presley Medical 1 03-13-2008 09:57 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.