Did anyone need to deduct the 2001 tax reduction credit from their 2001 tax refund?

If you can remember any details about what happened in 2001 please let me know. I've heard of severals cases where tax reduction credits had to be deducted from 2001 refund amounts and I've heard of others not having to do this...

Did anyone need to deduct the 2001 tax reduction credit from their 2001 tax refund?
I have all of my tax paperwork from 2001 so, I can easily read and relate to you how the tax reduction credit was handled back then.





The 1040 form was just like it is today, with sections for income, adjustments to income (with lines 33 %26amp; 34 being AGI), tax %26amp; credits, other taxes, payments, %26amp; refund sections.





Line 47 (in the tax %26amp; credits section) was labeled "Rate Reduction Credit. See the worksheet."





The first question on the Rate Reduction Credit Worksheet was "If you received (before offset) an advance payment of your 2001 taxes equal to the amount shown below for your 2001 filing status, stop. You cannot take the credit because you have received the maximum amount of the credit."





As it turns out, I had received my $300 (since I was single then) advance payment so, I didn't have to do anything else. I did not have to deduct that credit from my 2001 refund.





However, according to that worksheet, if I had not received the full amount ($300 for single or MFS; $500 for HOH; $600 for MFJ or qualifying widow(er)) the calculation would have resulted in a credit on the final line of the Rate Reduction Credit Worksheet. That credit would have carried back to line 47 (Rate Reduction Credit) of the 1040 form to be calculated as a "credit" on the tax return.





Also, the instructions on the worksheet indicate that if the taxpayer received too much of an advance credit, that "...you do not have to pay back the difference."





So, I can tell you -- without any doubt -- that no tax reduction credit had to be deducted from the 2001 refund amount. In fact, as I indicated above, if the maximum advance credit had not been received then, the taxpayer would have had that additional amount added as a credit to his/her tax return.