The New Jersey tax that your mother paid at the time of the sale has to be entered in the federal interview in TurboTax. According to the instructions for Form NJ-1040NR it's considered a payment of New Jersey estimated tax, not withholding. Here's how to enter the estimated tax payment in TurboTax.
- Click the Federal Taxes tab.
- Click Deductions & Credits.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2015 Deductions & Credits" scroll down to the section "Estimates and Other Taxes Paid."
- Click the Start, Update, or Revisit button for "Estimates."
- On the Estimated taxes screen, click the Start, Update, or Revisit button for State estimated taxes for 2015.
- Enter the payment on the next screen. It doesn't matter which quarter you enter it under. Select New Jersey as the state, change the Date Paid to the date that your mother paid the tax (probably the date of the closing), and enter the amount.
The amount of tax paid will appear on Form NJ-1040NR line 46.
