The management of understory vegetation and anthropogenic nitrogen (N) deposition has significantly resulted in a nutrient imbalance in forest ecosystems. However, the effects of canopy nitrogen addition and understory vegetation removal on N transformation processes (mineralization, nitrification, ammonification, and leaching) along with seasonal variations (spring, summer, autumn, and winter) remain unclear in subtropical forests. To fill this research gap, a field manipulation experiment was conducted with four treatments, including: (i) CK, control; (ii) CN, canopy nitrogen addition (25 kg N ha−1 year−1); (iii) UR, understory vegetation removal; and (iv) CN+UR, canopy nitrogen addition plus understory vegetation removal. The results revealed that CN increased net mineralization and nitrification by 294 mg N m−2 month−1 in the spring and 126 mg N m−2 month−1 in the winter, respectively. UR increased N mineralization and nitrification rates by 618 mg N m−2 month−1 in the summer. In addition, CN effectively reduced N leaching in the spring, winter, and autumn, while UR increased it in the spring and winter. UR increased annual nitrification rates by 93.4%, 90.3%, and 38.9% in the winter, spring, and summer, respectively. Additionally, both net N ammonification and annual nitrification rates responded positively to phosphorus availability during the autumn. Overall, UR potentially boosted nitrification rates in the summer and ammonification in the spring and winter, while CN reduced N leaching in the spring, winter, and autumn. Future research should integrate canopy nitrogen addition, understory vegetation removal, and phosphorus availability to address the global N deposition challenges in forest ecosystems.