New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A4039

Introduced
3/7/24  

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, A4039 will substantially impact New Jersey's tax framework regarding how medical and funeral expenses are treated for senior citizens and individuals with disabilities. By creating a tax deduction for these expenses, the bill would help ease the fiscal burden on these vulnerable populations, enabling them to manage healthcare-related costs and funeral arrangements without incurring additional tax penalties on their savings and investments. This initiative supports the state's efforts to recognize and assist its aging population and those living with disabilities.

Summary

Assembly Bill A4039 aims to provide significant financial relief to senior citizens, blind individuals, and disabled individuals by allowing them to deduct certain medical and funeral expenses from their gross income tax. Specifically, the bill permits deductions for unreimbursed medical expenses relating to long-term care services, which may include in-home care or care in assisted living and long-term care facilities, up to a limit of $50,000. Additionally, it addresses funeral costs, also allowing for deductions up to $50,000 for the funeral expenses of a spouse or dependent who falls under the same eligibility criteria.

Sentiment

The sentiment around A4039 seems largely positive among its proponents, which includes lawmakers and advocacy groups that focus on senior care and disability rights. Advocates argue that this bill is a necessary step for equitably addressing the financial challenges faced by elderly and disabled residents in New Jersey. However, there may be some contention regarding the overall budget impact and the long-term sustainability of such tax exemptions within the state's fiscal policy.

Contention

While the bill generally enjoys support, potential points of contention might arise during the legislative process regarding its fiscal implications and effects on tax revenue. Critics may express concerns over how these deductions could affect the state's budget and resources allocated for other essential services. Furthermore, discussions may emerge about the appropriate balance between providing necessary financial assistance to vulnerable groups and ensuring that the state's tax revenue remains adequate to meet broader community needs.

Companion Bills

NJ S2725

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.

NJ S2650

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.

Previously Filed As

NJ S2725

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 S2650

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 A5776

Provides gross income tax credit to qualified caregivers for care and support expenses incurred for qualifying senior parent.

NJ A1581

Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.

NJ A1802

Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.

NJ S2021

Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.

NJ S2303

Provides gross income tax credit for certain expenses paid or incurred for care and support of qualifying senior family member; designated as Caregiver's Assistance Act.

NJ A3151

Provides gross income tax deduction for certain home elevation expenses.

NJ A4397

Provides gross income tax deduction for expenses incurred by disabled veterans for service animals.

NJ A5476

Provides $5,000 gross income tax deduction for taxpayers who incur certain commuter expenses.

Similar Bills

NJ S2650

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 S2725

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.

IN SB0197

Child and dependent care tax credit.

IN SB0255

Child and dependent care tax credit.

IN SB0238

Child and dependent care tax credit.

IN SB0395

Child and dependent care tax credit.

IN SB0234

Child and dependent care tax credit.

HI HB1049

Relating To Income Tax.