State income tax: who gets the deduction?

[adamkelly]

Assume a child is required to file a return due to significant investment income. The return generates a state tax liability. The parents pay the tax bill. Do they get to deduct the payment or does the child? I think the parents do since they're the ones that paid it, but I can't find anything arguing either way...

Adam

[taxtrio]

Interesting question. Normally the one liable for the tax gets the deduction. If someone pays it for them then it

could be considered a gift. But, is the child still a dependent of parents? Are they a minor? Would the parents then be considered responsible for the child's debt? If the parents are considered responsible for the minor child's debt and have paid it then.... maybe yes? Any other opinions out there?

[Yardley CPA]

I would tend to agree in questioning whether the children are considered dependants on their parent's return. If so, and the parents paid the debt, I would think the parent's are entitled to the deduction.

[Lion EA]

So, if next year or so, the kid gets a state refund, will the parents claim it as income?

[adamkelly]

Both kids are minors.