Pre-paying state taxes?

Is this an option right now? I see lots of discussion regarding property taxes, but what NJ income tax? I know that I will be making a bit more next year, and have been recommended to pre-pay. Has anyone else done this or been recommended to do so?


Who made the recommendation?  Speaking with an accountant experienced in tax preparation may be your best bet.


Pay the fourth installment of your 2017 NJ estimated tax before the end of the year (by tomorrow) and pay something in excess of what you will owe for 2017. When you file your 2017 NJ income tax choose to have any excess amount of estimated taxes paid for 2017 credited against your 2018 NJ income tax, instead of asking for a refund. You can pay your NJ estimated tax online and it's credited immediately. 


Good advice, if you won’t incur AMT, before yesterday, but since the IRS issued a clarification that only prepaid “assessed” property taxes would be deductible it depends on your town. (Pretty sure you can’t prepay income tax on unearned income to answer the OP)


Check with an accountant to be sure. 


https://www.google.com/amp/s/www.wsj.com/amp/articles/irs-2018-property-taxes-have-to-be-assessed-to-qualify-for-prepayment-1514417581



cramer said:

Pay the fourth installment of your 2017 NJ estimated tax before the end of the year (by tomorrow) and pay something in excess of what you will owe for 2017. When you file your 2017 NJ income tax choose to have any excess amount of estimated taxes paid for 2017 credited against your 2018 NJ income tax, instead of asking for a refund. You can pay your NJ estimated tax online and it's credited immediately. 

Thanks. This is helpful information.  


If in Maplewood, the town has issued property tax bills for 1st and 2nd quarter 2018, so prepayments for those amounts should be deductible on the 2017 return. That plus cramer's recommendation re accelerating and possibly increasing your NJ estimate tax payment is what I have done and my accountant concurred. Both types of payments can be made online with a printable receipt/proof of payment.  As others have mentioned, this won't help if you are subject to AMT, however.  



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