diff --git a/wtxmgr/tx.go b/wtxmgr/tx.go
index 32338b7..f641e68 100644
--- a/wtxmgr/tx.go
+++ b/wtxmgr/tx.go
@@ -405,7 +405,9 @@ func (s *Store) addCredit(ns walletdb.ReadWriteBucket, rec *TxRecord, block *Blo
 		if existsRawUnminedCredit(ns, k) != nil {
 			return false, nil
 		}
-		if existsRawUnspent(ns, k) != nil {
+		if _, tv := latestTxRecord(ns, &rec.Hash); tv != nil {
+			log.Tracef("Ignoring credit for existing confirmed transaction %v",
+				rec.Hash.String())
 			return false, nil
 		}
 		v := valueUnminedCredit(btcutil.Amount(rec.MsgTx.TxOut[index].Value), change)
diff --git a/wtxmgr/tx_test.go b/wtxmgr/tx_test.go
index 8914e1a..de46e9f 100644
--- a/wtxmgr/tx_test.go
+++ b/wtxmgr/tx_test.go
@@ -162,7 +162,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: 0,
 			unc: btcutil.Amount(TstRecvTx.MsgTx().TxOut[0].Value),
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstRecvTx.Hash(),
 					Index: 0,
 				}: {},
@@ -189,7 +189,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: 0,
 			unc: btcutil.Amount(TstRecvTx.MsgTx().TxOut[0].Value),
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstRecvTx.Hash(),
 					Index: 0,
 				}: {},
@@ -216,7 +216,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: btcutil.Amount(TstRecvTx.MsgTx().TxOut[0].Value),
 			unc: 0,
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstRecvTx.Hash(),
 					Index: 0,
 				}: {},
@@ -241,7 +241,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: btcutil.Amount(TstRecvTx.MsgTx().TxOut[0].Value),
 			unc: 0,
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstRecvTx.Hash(),
 					Index: 0,
 				}: {},
@@ -257,7 +257,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: 0,
 			unc: btcutil.Amount(TstRecvTx.MsgTx().TxOut[0].Value),
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstRecvTx.Hash(),
 					Index: 0,
 				}: {},
@@ -284,7 +284,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: btcutil.Amount(TstDoubleSpendTx.MsgTx().TxOut[0].Value),
 			unc: 0,
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstDoubleSpendTx.Hash(),
 					Index: 0,
 				}: {},
@@ -343,7 +343,7 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: 0,
 			unc: btcutil.Amount(TstSpendingTx.MsgTx().TxOut[0].Value),
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 0,
 				}: {},
@@ -369,11 +369,11 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: 0,
 			unc: btcutil.Amount(TstSpendingTx.MsgTx().TxOut[0].Value + TstSpendingTx.MsgTx().TxOut[1].Value),
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 0,
 				}: {},
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 1,
 				}: {},
@@ -395,11 +395,11 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: btcutil.Amount(TstSpendingTx.MsgTx().TxOut[0].Value + TstSpendingTx.MsgTx().TxOut[1].Value),
 			unc: 0,
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 0,
 				}: {},
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 1,
 				}: {},
@@ -415,11 +415,11 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: btcutil.Amount(TstSpendingTx.MsgTx().TxOut[0].Value + TstSpendingTx.MsgTx().TxOut[1].Value),
 			unc: 0,
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 0,
 				}: {},
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 1,
 				}: {},
@@ -435,11 +435,11 @@ func TestInsertsCreditsDebitsRollbacks(t *testing.T) {
 			bal: 0,
 			unc: btcutil.Amount(TstSpendingTx.MsgTx().TxOut[0].Value + TstSpendingTx.MsgTx().TxOut[1].Value),
 			unspents: map[wire.OutPoint]struct{}{
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 0,
 				}: {},
-				wire.OutPoint{
+				{
 					Hash:  *TstSpendingTx.Hash(),
 					Index: 1,
 				}: {},
@@ -1522,6 +1522,82 @@ func TestInsertMempoolTxAlreadyConfirmed(t *testing.T) {
 	checkStore()
 }
 
+// TestInsertMempoolTxAfterSpentOutput ensures that transactions that were
+// both confirmed and spent cannot be added as unconfirmed.
+func TestInsertMempoolTxAfterSpentOutput(t *testing.T) {
+	t.Parallel()
+
+	store, db, teardown, err := testStore()
+	if err != nil {
+		t.Fatal(err)
+	}
+	defer teardown()
+
+	// First we add a confirmed transaction to the wallet.
+	b100 := BlockMeta{
+		Block: Block{Height: 100},
+		Time:  time.Now(),
+	}
+	cb := newCoinBase(1e8)
+	cbRec, err := NewTxRecordFromMsgTx(cb, b100.Time)
+	if err != nil {
+		t.Fatal(err)
+	}
+	commitDBTx(t, store, db, func(ns walletdb.ReadWriteBucket) {
+		if err := store.InsertTx(ns, cbRec, &b100); err != nil {
+			t.Fatal(err)
+		}
+		err := store.AddCredit(ns, cbRec, &b100, 0, false)
+		if err != nil {
+			t.Fatal(err)
+		}
+	})
+
+	// Then create a transaction that spends the previous tx output.
+	b101 := BlockMeta{
+		Block: Block{Height: 101},
+		Time:  time.Now(),
+	}
+	amt := int64(1e7)
+	spend := spendOutput(&cbRec.Hash, 0, amt)
+	spendRec, err := NewTxRecordFromMsgTx(spend, time.Now())
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	commitDBTx(t, store, db, func(ns walletdb.ReadWriteBucket) {
+		// We add the spending tx to the wallet as confirmed.
+		err := store.InsertTx(ns, spendRec, &b101)
+		if err != nil {
+			t.Fatal(err)
+		}
+		err = store.AddCredit(ns, spendRec, &b101, 0, false)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		// We now adding the original transaction as mempool to simulate
+		// a real case where trying to broadcast a tx after it has been
+		// confirmed and spent.
+		if err := store.InsertTx(ns, cbRec, nil); err != nil {
+			t.Fatal(err)
+		}
+		err = store.AddCredit(ns, cbRec, nil, 0, false)
+		if err != nil {
+			t.Fatal(err)
+		}
+	})
+
+	// now we check that there no unminedCredit exists for the original tx.
+	commitDBTx(t, store, db, func(ns walletdb.ReadWriteBucket) {
+		k := canonicalOutPoint(&cbRec.Hash, 0)
+		if existsRawUnminedCredit(ns, k) != nil {
+			t.Fatalf("expected output to not exist " +
+				"in unmined credit bucket")
+		}
+	})
+}
+
 // TestOutputsAfterRemoveDoubleSpend ensures that when we remove a transaction
 // that double spends an existing output within the wallet, it doesn't remove
 // any other spending transactions of the same output.