New Jersey 2026-2027 Regular Session

New Jersey Senate Bill S145

Introduced
1/13/26  

Caption

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.

Impact

If enacted, S145 would amend existing tax laws, providing a significant benefit to vulnerable populations who face high medical costs associated with long-term care. The bill categorizes qualified long-term care expenses in alignment with federal definitions, ensuring comprehensive coverage. Additionally, it introduces provisions for a similar deduction for funeral expenses, again capped at $50,000. This aspect of the bill aims to help families cope with the financial strain involved in laying to rest loved ones who are also senior citizens, blind, or disabled.

Summary

Senate Bill S145 proposes a gross income tax deduction for senior citizens, blind individuals, and disabled persons. This legislation allows those aged 62 and older, or those who are blind or disabled, to deduct up to $50,000 from their gross income for qualified long-term care services. These services cover necessary medical expenses for care received at home, assisted living facilities, or long-term care facilities. The bill's intent is to alleviate the financial burden on seniors and other qualifying individuals who often pay for medical care out of their savings and investments, addressing both healthcare and longevity concerns.

Contention

The bill may face scrutiny based on concerns about its scope and fiscal implications. While it aims to provide substantial relief to elderly and disabled individuals, opponents might argue it places added pressure on the state's fiscal resources, necessitating careful examination of budget allocations. Furthermore, discussions may arise regarding the exclusion of reimbursable amounts and how this impacts overall medical care accessibility and affordability.

Companion Bills

NJ S2725

Carry Over 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.

NJ A4039

Carry Over 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.

NJ A731

Same As 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.

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