New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 26 - TRANSFER INHERITANCE AND ESTATE TAX
Subchapter 6 - EXEMPTIONS
Section 18:26-6.17 - No fault insurance

(a) The amount payable by reason of medical expenses incurred as a result of personal injury to the decedent should be reflected by reducing the amount claimed for medical expenses as a result of the accident.

(b) The amount payable at the death of an income producer as a result of injuries sustained in an accident, which are paid to the estate of the income producer, is reportable for taxation. In all other instances this amount is exempt.

(c) The amount paid at death to any person under the essential services benefits section is exempt from taxation.

(d) The claim for funeral expense is to be reduced by the amount paid under the funeral expenses benefits section of the law.