Amended tax return - when to file?

[NotSoFair]

I moved in July 2011 and claimed moving expenses deduction on my 2011 return. I moved again in March 2012 and would like to claim the moving expenses deduction in 2012. That would mean I have to file an amended return for 2011 to negate the deduction for that year. My question is, am I required to file the amended return for 2011 along with my 2012 returns or can I file it later? My preference is to file later.

Thanks

[mwcpa]

I would feel, in order to not draw the watchful eye of an IRS audit (or state tax audit) that you amend first....

but, you can elect to include the 2011 claimed moving expense in income for 2012 and not have to worry about amending...

run the numbers see what is best....

[NotSoFair]

Thank you mwcpa. I am in a higher tax bracket this year, so it is beneficial to amend last year's return. Moreover, I have to amend last year's returns to change from HoH to MFJ. Only thing is, I can only do that later in the year. Only other way I can file an amended return now is if I can file W-7 (for ITIN) along with the amended return. Is that possible? That way I may be able to amend my returns for 2011 to take care of both.

Thanks.

[mwcpa]

I believe you need to get the ITIN for tax purposes prior, but you can prepare and file the amended (not the ITIN as applied for), get the tax paid on and limit the interest and possible penalties that are accruing day by day....

do not forget, since you are getting an ITIN and going to elect to include your spouses income, his annual worldwide income must be included, not from day married, not just in the US.... you may want to look at married filing separate as a better choice....and if you lived apart for the final 6 months of the year and otherwise have a child as a dependent HOH may still work....

see a pro about these potentially complicated matters that cannot possibly be fully answered here.

[NotSoFair]

Thank you for the insight.

I know W-7 (for ITIN) can normally be applied while filing a tax return, I am just not sure if it can be applied with an amended return. I will consult a pro.

Regarding electing HoH vs MFJ, DH's worldwide income will be cancelled out by the foreign income exclusion (at least that is my belief, will consult a pro). So, we will still be benefiting from the additional standard deduction ($11,600 as opposed to $8,500) and another exemption of $3,700.

Thanks.

[mwcpa]

I have never had a client request an ITIN on a amended filing, we have always done it separately usually for banking purposes first before tax....

do not forget foreign income exclusion applies only to "earned" income (salary, wages, etc), not interest, dividends, capital gains, rental real estate profits, etc. plus their may be additional complications like form 5471, 8938, TD 90-22, etc....