Rebate credit and amended tax return

[Questionguy101]

How do you report the change in the rebate tax credit in an amended tax return?

Taxpayer has already received $600 rebate credit last year.

Now he will amend his 2007 tax return and he will also receive a refund. The problem is that he would have only received $300 rebate credit, instead of the full $600, if his 2007 tax return had been done correctly last year. How do you account for the $300 excessive rebate credit that he has received in the amended tax return?

[ChEAr$]

You don't

How do you report the change in the rebate tax credit in an amended tax return?

Taxpayer has already received $600 rebate credit last year.

Now he will amend his 2007 tax return and he will also receive a refund. The problem is that he would have only received $300 rebate credit, instead of the full $600, if his 2007 tax return had been done correctly last year. How do you account for the $300 excessive rebate credit that he has received in the amended tax return?

do anything else. If he got 600$, that's all he gets.
"Would have" and "could have" just don't apply any more. Put the right figures on the
worksheet and your software will do the rest.

[Questionguy101]

do anything else. If he got 600$, that's all he gets.
"Would have" and "could have" just don't apply any more. Put the right figures on the
worksheet and your software will do the rest.

Thank you for the reply. That just sounds too good to be possible.

I find it very uneasy that the taxpayer can amend the tax return to get a refund but he can also keep the excessive rebate credit which he was not supposed to get if not for the mistake in the original return. I don't mind him correcting the mistake to get the refund. But I also want to find a way to make him pay back the excessive rebate credit that he has received because of the mistake.

[Burke]

What was the mistake?

[JohnH]

Questionguy:
Is it your job to set the client straight according to your standards, or is it your job to do the best you can for the client using the existing rules regardless of how you personally feel with respect to "fairness" ?

If I were your client, I'd be very interested in the answer to that question before letting you prepare my return. If you have some moral objection to doing the best job for your client, you have an equally moral obligation to advise him of your biases.

[Davc]

do anything else. If he got 600$, that's all he gets.
"Would have" and "could have" just don't apply any more. Put the right figures on the
worksheet and your software will do the rest.

I think you read the question wrong.