For his 2011 return, my 14 year old paid $1500 in Mass state tax because of interest, dividends and cap gain income from an account given to him by his grandfather. Of course, the $1500 state tax was paid in the year 2012.
For his 2012 return, his income (all unearned) was only $1800. Can he file his own return and instead of using the reduced standard deduction of $950 (because I claim him on my return) use an itemized deduction of $1500 because state taxes are deductible in the year they are paid? Or does he have to use the standard deduction of $950? And if it's OK to use the $1500 deduction, do we still have to file a return given that the tax due is zero?