New Jersey program
New Jersey tax credits and the medical-expense deduction
New Jersey offers tax credits and a deduction for eligible medical expenses.
What it is
New Jersey offers tax credits and a deduction for eligible medical expenses.
A tax preparer can check New Jersey's earned-income, child and dependent-care credits. Eligible medical expenses above 2% of income may also qualify for a deduction. Each uses annual tax-return rules, not this monthly household screen.
Eligibility rules
- For tax year 2025, the NJ Earned Income Tax Credit is 40% of the federal EIC, up to $3,218.40 before optional rounding. Separate rules govern the young-child and child-care credits. Eligible unreimbursed medical expenses above 2% of income may be deductible. A tax preparer should check annual income, filing status and dependents; this monthly screen does not decide tax eligibility.
- For tax year 2025, the child credit is up to $1,000 per qualifying child age five or younger. Smaller amounts apply as New Jersey taxable income rises to $80,000. The dependent-care credit is a share of the qualifying federal credit for eligible families with income up to $150,000. The preparer can confirm the correct tax-year amounts and filing rules.
What you get
- A review of refundable earned-income, child and dependent-care credits, plus the medical-expense deduction.
What the help covers
- The medical-expense deduction reduces taxable income. Refundable credits use different rules and can produce a payment even when no tax is due.
If you decide to apply
- Your tax preparer can review the state credits and medical-expense deduction for the correct tax year.
- For that discussion, it helps to have receipts, insurance explanations and reimbursement records ready for the tax return.
New Jersey Division of Taxation · Official page ↗
After you ask
- The deduction is claimed on the yearly New Jersey income-tax return.
- The ordinary deadline for a 2025 New Jersey income-tax return was April 15, 2026. A qualifying extension gives more filing time, not extra time to pay. The preparer can check any extension and unpaid tax.
- Certain low-income residents with young children can use 2025 Simple File through November 16, 2026. It has narrower eligibility and is not a second return for someone who already filed. A preparer can check whether this route fits.
Good to know
The extra New Jersey exemption for blindness or disability does not extend to a dependent child.
Other details
- Reimbursement records matter alongside receipts because reimbursed costs do not qualify.
Official sources
- Deductions, exemptions and credits
- Official evidence for NJ.state_tax_review (reviewed September 21, 2026)
- Official evidence for NJ.state_tax_review (reviewed September 21, 2026)
- Official evidence for NJ.state_tax_review (reviewed September 21, 2026)
- NJ Division of Taxation: 2025 credits and filing routes
- NJ Division of Taxation: 2025 credits and filing routes
- NJ Division of Taxation: 2025 credits and filing routes
“Which costs should we keep for the New Jersey medical deduction? Could a tax preparer help us claim it correctly and account for any reimbursements?”
Why I’m asking: I want to keep the right records so eligible treatment costs are reflected on our tax return.
More background and detailed requirements
Additional program information and published rules
Who does what
The three parts, side by side. The agency decides; nobody on this page does.
You
Keep receipts and explanations of benefits through the year.
Your social worker
A tax preparer applies the deduction.
The care team
Records and letters when the application asks for them.
- Who decides
- The Division of Taxation, on the filed return.
- Ask your social worker
- “What should we keep through the year for the New Jersey medical expense deduction?”
How to apply
First step: Start a folder of unreimbursed medical costs now.
- Keep a folder of unreimbursed medical costs from the first week.
- Give it to whoever prepares the New Jersey return.
Official application / program page ↗
Where it starts: Claim it on the New Jersey return; keep every receipt.
What to gather
The diagnosis letter, the child’s insurance card, and the last two pay stubs cover most applications. The official page lists the rest.
How long: Claimed on the yearly return.
What a yes looks like
A smaller New Jersey tax bill or a larger refund.
What a no looks like, and the next move
Costs did not reach 2% of income this year. Keep the folder for next year.
Watch out
- The extra exemption for blindness or disability does not cover a dependent child.
The numbers and the rules
The arcane layer, kept on purpose. Checked September 11, 2026.
What it is worth
Unreimbursed medical costs above 2% of income deducted on the New Jersey return.
- $2/year — Share of income above which unreimbursed medical costs can be deducted
Legal protection: A far lower threshold than the federal one
What it costs the family: Nothing.
The eligibility facts, as published
- Residency
- New Jersey taxpayers
- Note
- the additional exemption for a person who is blind or disabled does not extend to dependents
The trap: The extra New Jersey exemption for someone who is blind or disabled does not cover a dependent child. Do not claim it for the child.
Where I read this
- Deductions, exemptions and credits — New Jersey Division of Taxation, read September 10, 2026