The estimated payment that you made in January 2025 was for your 2024 taxes and would count toward state taxes that you paid in 2024, while the estimated payment for January 2026 would have been made for 2025.
As for the state refund you received in 2025 for your 2024 tax return: That would not get subtracted from 2025 tax payments as it was a refund of overpaid taxes in 2024. Instead, the 2024 state refund amount might get included in taxable income for 2025 if you had itemized deductions and your state income tax payments plus your property taxes were under $10,000 in 2024. Judging by your 2025 estimated payments, it seems likely that your state and local tax payments for 2024 were more than $10,000, in which case you would not need to report your 2024 state tax refund as income on your 2025 taxes. If you took the standard deduction in 2024, there would also be nothing to report for your 2024 state tax refund.
For 2025, the state and local tax deduction cap increased to $40,000, so you may need to report a 2025 state tax refund on your 2026 return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
