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Campfire Compadres'

I am reconsidering filing an amended return for a move that didn't quite work out.

2 1/2 years ago, I relocated my wife and son out of state so my wife could get him off and running his first semester away at school, and start her new job. The plan was for me to follow as soon as I found a job. Then we would worry about selling the primary residence, and shopping for another, while spending the first year in our apt.

This went not quite according to plan, as I was unable to find work. Since my wife was not crazy about her job, and son was doing fine, and being apart was miserable, she got her old job back, and moved back home.

Now fast forward to tax time, and imagine the $7k+ in moving related expenses, and trying to determine if it could be claimed as a tax-exempt deduction for tax purposes. Our CPA said he would probably claim it, but wasn't sure how I would explain the move, since legally, you can only live in 1 place at a time, and our address would have been the same as the year before. I figured he was right and let it drop. However, now that I have known a few other folks who relocated for various reasons, and then moved back when things did not work out, I am wondering if it would be smart to resurrect the issue with my 2009 filing, with an amendment to my 2007 return. It is still within the 3 yr. limit, and wife did meet the minimum 39 consecutive weeks of employment at the new location.

So . . . is it doable, or more trouble than it's worth?

The downside of course, is the additional tax prep. plus the scrutiny which the amended return would generate. This would not be an issue, since there is nothing untoward involved other than circumstances and poor planning.

Thanks all.

forepaw

It's a 1040X of your 2007 return. Does not have anything to do with your 2009 return. This one is just complicated enough I would call the IRS and ask them about it. If they say "Yes, you are OK to do it" then get the form and see what effect it would have. Additional refund? Then is it enough to justify the trouble?

I have done it before, it attracted enough attention for an audit. We ended up with a 80%/20% split, and I was on the good side.

I like to use TurboTax, and you can set up a dummy return for the tax year you are working and see what the difference is.

jim

I'd have to be getting a SUBSTANTIAL difference back to make it worth my while.

As mentioned, you'll pay more to get it done (unless you do it yourself, but it doesn't sound like that's the plan). So that comes off the top.

Then the increased odds of an audit... Even if you are totally legit and justified in doing it, and "win" the audit, you're going to have more time, more money, and big stress involved, for what kind of gain?

I'd have to do a quick runthrough of the numbers myself, and see what sort of potential gains there are to be had vs the potential (and actual) downsides.

While I hate paying taxes, this falls under the "pick your fights wisely" category in my book.

ColdBore and others,

I agree, no easy answer, just trying to see if I am way off base, or something that might be worth the effort and expense and stress. All good info and thanks mucho.

forepaw