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Adjusting NJ self-employed health insurance amounts on Form NJ-1040-TR in Lacerte

SOLVEDby Intuit4Updated July 27, 2023

Refer to the Instructions for New Jersey Income Tax Nonresident Return for more information about this deduction.  

What are the qualifications for the New Jersey self-employed health insurance deduction?

You may deduct the amount you paid during the year for health insurance for yourself, your spouse or domestic partner, and your dependents if:

  • You're considered self-employed for federal tax purposes.
  • You received wages in 2023 from an S corporate in which you were a more-than-2% shareholder.

What are the limitations for this deduction?

Your deduction can't be more than the amount of your earned income (as defined for federal tax purposes) from the business under which the insurance plan was established.

You also can't deduct amounts paid for health insurance coverage for any month that you were eligible to participate in any subsidize health plan maintained by your (or your spouse's or domestic partner's) employer.

How do I enter adjustments for this amount in Lacerte?

Follow these steps to enter an adjustment for the NJ self-employed health insurance deduction:

  1. Go to Screen 51, Modifications.
  2. Select New Jersey from the left navigation panel.
  3. Locate the Medical Expense Deductions section.
  4. Enter the Total self-employed health insurance deduction [O].
    • This override will adjust the amount on Form NJ-1040-TR, line 30.

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