topic property tax deduction new jersey - how to handle pre-paid tax in Deductions & credits

property tax deduction new jersey - how to handle pre-paid tax

NJJoy — Thu, 26 Feb 2026 19:05:29 GMT

I was "assessed" property tax for the first two quarters of 2026 and paid them in 2025. Turbotax included those payments in calculating my refund (even though they were not "for calendar year 2025") - is this correct? I can't find an answer anywhere and not on the NJ website.

Re: property tax deduction new jersey - how to handle pre-paid tax

xmasbaby0 — Thu, 26 Feb 2026 19:26:45 GMT

You can enter the property tax for the year in which you PAID the tax, despite what year the payment was "for."

Re: property tax deduction new jersey - how to handle pre-paid tax

NJJoy — Thu, 26 Feb 2026 21:16:45 GMT

sounds great but I need the authority for this, please. where are you getting this information?

Re: property tax deduction new jersey - how to handle pre-paid tax

Karis_F — Thu, 26 Feb 2026 21:37:41 GMT

Yes. You can claim prepaid property tax as long as it was assessed in the year are claiming the tax deduction.

See this TurboTax article for details.

Re: property tax deduction new jersey - how to handle pre-paid tax

NJJoy — Fri, 27 Feb 2026 01:18:25 GMT

I believe this is true for a deduction on my FEDERAL return, but my question is - how does the State of New Jersey treat pre-paid property tax (assessed in 2025 for 2026 and paid in 2025). Have you found a definitive answer to that?

Thanks!

Re: property tax deduction new jersey - how to handle pre-paid tax

NJJoy — Sat, 28 Feb 2026 03:06:05 GMT

thanks - this relates to the Federal return, not the State return. It looks like I need to enter two different amounts for each - Federal includes the pre-paid property taxes, the State does not.

Re: property tax deduction new jersey - how to handle pre-paid tax

AmyC — Wed, 04 Mar 2026 17:50:53 GMT

Yes, the federal allows the prepayment while the state only allows the amount due and paid for 2025.

Reference: NJ 1040 page 26