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

[NJJoy]

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.

[xmasbaby0]

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

[NJJoy]

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

[Karis_F]

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.

[NJJoy]

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!

[NJJoy]

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.

[AmyC]

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

Reference: NJ 1040 page 26