Mistake on 2015 taxes - how to handle?

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Mistake on 2015 taxes - how to handle?

Post by dmcmahon » Wed Apr 05, 2017 10:25 am

I made a mistake doing my sister's 2015 taxes, the net effect of which was to get a larger refund than she was entitled to. I'm now preparing an amended return to correct the mistake.

The question is actually about her 2016 tax return. On that return I've reported the amount of the state refund as it was on the original incorrect return. This figure also matches the 1099 she got from her state, and the actual amount she received. Now thanks to the amended return she'll have to give some of it back.

Does this have any effect on the 2016 return? Should I report the lower refund net of the repayment? Or, is the repayment a 2017 item? My inclination is to report it as a tax payment for 2017 since she's a cash method taxpayer. Anyone know for sure?

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Re: Mistake on 2015 taxes - how to handle?

Post by jebmke » Wed Apr 05, 2017 10:27 am

Any payment made for 2015 this year would be reported as a tax payment on her 2017 return (if she itemizes).
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