Stimulus Rebate - Amended Return

[Dave T]

Have a question I haven't seen addressed and IRS website seems a bit confusing to me.

I know the rebate amount is determined primarily from the 2007 tax return.

My question is - what if the return needed to be amended and as a result the rebate amount would be higher?

Client (MFJ) received rebate check of $600.00 but should have been $1200.00 - reason being is that on original return his tax liability was less than $1200.00.

The amended return included more income and tax libility exceeded $ 1200; therefore he would be entitled to the full amount.

Will IRS correct this? Wondering what I should tell client.

Thanks

Dave T

[BulldogTom]

I don't think they will correct it. It will be corrected on the 08 return. My understanding is he will calc the credit, compare it to the amount recieved, and get the difference, but not pay out and overpayment (free money!).

I don't have a source for you, but that is how I understood it to work.

Tom

Lodi, CA