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Bill

S 145

Provides gross income tax deduction for senior citizens for certain medical expenses for in-home care or care in assisted living and long-term care facilities and funeral expenses.

2026-2027 Regular Session Introduced by Jim Holzapfel

New Jersey bill allowing seniors to deduct medical, assisted living, and funeral expenses from taxable income to reduce state income tax liability.

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee
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Bill Summary · S 145

Legislative bill overview

S 145 allows senior citizens in New Jersey to deduct certain qualified medical expenses from their gross income for tax purposes. These deductible expenses include costs for in-home care, assisted living facilities, long-term care facilities, and funeral expenses. This effectively reduces the taxable income of eligible seniors, lowering their state income tax liability.

Why is this important

Senior healthcare and end-of-life costs represent substantial financial burdens for older New Jerseyans and their families. By reducing the tax burden on these expenses, the bill aims to provide financial relief during economically vulnerable years. However, the fiscal impact on state tax revenue and whether benefits reach lower-income seniors (who may pay little or no income tax) are key practical considerations.

Potential points of contention

  • Revenue impact: The bill could reduce state tax collections; fiscal analysis would determine whether this aligns with budget priorities or requires offsetting measures
  • Definition ambiguity: "Certain medical expenses" requires clarification on what specifically qualifies, potentially creating disputes over eligibility and complexity in tax filing
  • Regressive nature: Tax deductions primarily benefit higher-income seniors who owe substantial taxes; lower-income seniors may see minimal or no benefit despite facing the same care costs
  • Funeral expense inclusion: Funeral expenses are not medical costs, raising questions about the bill's scope and whether this category belongs in a healthcare-focused deduction

Compiled from official sources — confirm details with the bill’s official record.

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