I have been working for a company for 4 years. In the first 3 years, they listed on my W2 in Box 14 NJSDI payments. In 2011, about mid year, they changed the notation on my paycheck to NJ Private This. My 2011 W2 box 14 now used NJVPDI. When I asked HR about the change, they told me they had this coverage with a Insur company all along and just listed it as NJSDI on previous years W2's. I am confused as to whether NJVPDI can actually be itemized on my Schedule A as I have done in previous years. HR informed me that the plan is exactly what the State of NJ offers and the payroll deduction is exactly the same. In my readings, some say its deductible, some say its not. Many talk about Calif (which is probably the same) but few actually reference NJ. I am currently out on disabilty due to some surgery and can tell you that the Insurance Co. (not the state) sends me my disability checks. So I need to know if it can be itemized on Schedule A or not?

In my opinion, it IS deductible, just like SDI.

I do not think you would get much of an argument from the IRS on this issue, because it would likely be considered de minimus (too small to be worth considering).

New Jersey, on the other hand, can be rather prickly about such issues, so a phone call to the New Jersey tax authorities might be your best decision.