I am in NJ (just like Dave the OP is), and I ran into the exact same problem that he did. This thread perfectly explained how deductibility of NJ estimated tax payments work:
I CANNOT deduct my Q4 2025 payment because it was made in 2026.
I CAN deduct my Q4 2024 payment though, because it was made in January 2025.
I would like to take this one step further though. Here are my NJ estimated tax payments for tax year 2025:
Jan 2025 payment = $2,300
Apr 2025 payment = $8,100
Jun 2025 payment = $100
Sep 2025 payment = $0
Jan 2026 payment is N/A
My deductible amount is $10,500. However, line 5a on Schedule A shows only $10,239. The $10,500 has been reduced by $261.
TurboTax explains the $261 in the "State and Local Income Tax Refund Worksheet" as follows:
"Refund allocated to tax paid after 12/31/2024."
Is it assuming that I itemized in 2024, and deducted the $2,300? I didn't itemize in 2024, so I don't understand why my deduction is being reduced. Can anyone help?
