Did you pay NJ Inheritance Tax?
You can subtract a portion of that from the distributions until it is used up.
Did the IRA owner have NJ basis?
If a New Jersey resident, the answer is likely yes.
You can deduct that prorated using NJ Worksheet C.
In either case you calculate from your own records, which are produced only if you are audited by NJ.
Keep copies of worksheets in your tax record cabinet.
@ProbablyMike
