To be clear $9,000 was withheld and paid in November of 2021 to the NJ State tax not the IRS . This was for capital gain income from the sale of a rental property in NJ. In January of 2022 I paid an additional $15,000 to NJ as an estimated payment for tax due in 2021. After the 2021 are done I will not be filing NJ State tax again. So my questions are:
1) Do I show the amount paid as state income tax on the federal return
2) The tax paid to NJ in 2021 plus the estimated NJ tax paid for 2021 in 2022 was an addition $15,000. Do I have to take the full $24,000 on my Federal return for 2021 or can I take $9K in 2021 and the estimated tax paid in 2022 for 2021 on my 2022 Federal return.
3) Should this tax payment be should as State Income tax on the Federal return or does it go on Schedule E somehow because it was related to the sale of the house.
Ed
