Q. I paid for a medical expense out-of-pocket in 2020 and did not use my health savings account to pay for it initially. In 2021, I then used my HSA to reimburse myself for that medical expense. I took the New Jersey medical expense deduction for that expense on my 2020 taxes.
This is because HSA is treated as pre-tax for federal purposes, and after-tax for New Jersey purposes, he said.
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