Question: is fsa tax deductible in nj?
Answer: But the full $10,000 can be deducted on your NJ-1040, minus, of course, the 2% of NJ Gross Income exclusion. FYI, just as HSA contributions are not deductible on the NJ-1040, New Jersey does not treat employee contributions to a Section 125 employer-sponsored medical Flexible Spending Account (FSA) as “pre-tax”.