New Jersey § 54a:3-5

§ 54a:3-5.

A taxpayer who is a “self-employed individual” within the meaning of clause (B) of paragraph (1) of subsection (c) of section 401 of the federal Internal

Revenue Code of 1986 , 26 U.S.C.s.401 , and a taxpayer treated as such a “self-employed individual” under that section pursuant

to section 1372 of the federal Internal Revenue Code of 1986 , 26 U.S.C.s.1372 , shall be allowed to deduct from the taxpayer's gross income an amount equal to the

amount paid during the taxable year for insurance which constitutes medical care for

the taxpayer, the taxpayer's spouse, and dependents; provided however, that the amount

of such deduction shall not exceed the taxpayer's “earned income,” as defined pursuant

to subsection (c) of section 401 of the federal Internal Revenue Code of 1986 , 26 U.S.C.s.401 , derived by the taxpayer from the trade or business with respect to which the plan

providing the medical care coverage is established, and provided further that no deduction

shall be allowed for coverage of any month for which the taxpayer is eligible to participate

in any subsidized health plan maintained by any employer of the taxpayer or of the

spouse of the taxpayer.