NJ A731

Bill

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.

Introduced
01/13/2026

In Committee
01/13/2026

Crossed Over

Passed

Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill provides a gross income tax deduction for senior citizens and for blind and disabled individuals for certain unreimbursed qualified long-term care expenses, not to exceed $50,000, paid by the taxpayer for the care of the taxpayer or the taxpayer's spouse or dependent who is also a senior or blind or disabled individual. This bill addresses a financial concern for senior citizens and others who have to pay gross income tax on income that they receive from long-established savings and investments that are then expended to pay for their residence-based medical care, nursing care, and maintenance or personal care. Qualified long-term care expenses are defined the same as for purposes of the federal medical expenses deduction, and include services provided for in-home care and care provided in assisted living and long-term care facilities for chronically ill and disabled individuals. They include a variety of services provided through a variety of service providers that are necessary diagnostic, therapeutic, curing, treating, mitigating, rehabilitating, and maintenance and personal care services required by such an individual and are provided pursuant to a plan of care prescribed by a licensed health care practitioner. This deduction will allow these taxpayers to avoid tax on the income they pay for their own medical care that is delivered in their home or in an assisted living and long-term care facility. The medical expenses allowed for this deduction may not be claimed also under the existing statutory gross income tax deduction for medical expenses. This bill also provides a gross income tax deduction for senior citizens, blind individuals, and disabled individuals for unreimbursed funeral expenses, not to exceed $50,000, paid by the taxpayer for the funeral of the taxpayer's spouse or the taxpayer's dependents, if those individuals were 62 years of age or over, blind, or disabled at the time of death. This deduction addresses the financial concern of elderly and disabled taxpayers who are faced with using income from life-long savings and investments to pay for the funeral expenses of close family members.

AI Summary

This bill allows individuals who are 62 years of age or older, blind, or disabled to deduct certain unreimbursed expenses from their gross income, which is the total income earned before taxes. For medical expenses, the deduction is capped at $50,000 and applies to costs for in-home care or care provided in assisted living and long-term care facilities for the taxpayer, their spouse, or dependents who also meet the age, blindness, or disability criteria. These "qualified long-term care services" are defined similarly to federal standards and include necessary medical and personal care services prescribed by a licensed healthcare practitioner for chronically ill individuals. Importantly, these medical expenses cannot be claimed under existing medical expense deductions and must not have been reimbursed. Additionally, the bill provides a separate deduction, also capped at $50,000, for unreimbursed funeral expenses for a taxpayer's spouse or dependents who were 62 or older, blind, or disabled at the time of their death. This aims to alleviate financial burdens on seniors and disabled individuals who may need to use their savings to cover these costs.

Committee Categories

Health and Social Services

Sponsors (2)

Greg McGuckin (R)*, Alex Sauickie (R)*,

Last Action

Introduced, Referred to Assembly Aging and Human Services Committee (on 01/13/2026)

Official Document

https://www.njleg.state.nj.us/bill-search/2026/A731

(3 Companion Bills)

Version:

Document Type	Source Location
State Bill Page	https://www.njleg.state.nj.us/bill-search/2026/A731
BillText	https://pub.njleg.gov/Bills/2026/A1000/731_I1.HTM

Bill	Bill Name	Last Action	Type
A4039	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.	Introduced, Referred to Assembly Aging and Human Services Committee	Carry Over
S145	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.	Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee	Same As
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.	Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee	Carry Over

Bill > A731

summary

Introduced Session

Bill Summary

AI Summary

Committee Categories

Sponsors (2)

Last Action

Official Document

bill text

bill summary

bill summary

bill summary