Tax Return Amendment

[hcgma2020]

I e-filed my original return on 4/10. On that return I claimed a little over $12,000 in medical expenses. Since then I learned my medical premiums didn't qualify. I amended last night and decreased my medical expenses to $778. My explanation for the amendment was “Decreased medical deductions.” 

I also had to change the sales tax percentage from 8% to 7% so I amended both federal and state. 

I am very worried about this amendment. I run a small baking business out of my home and took a loss. I get monthly IRA distributions so my AGI was $92,722. My income for my small business was $5050. I moved across the state so I claimed 1/3 of my moving expenses as a business deduction in other expenses. I had other deductions like supplies, ingredients, etc, but my loss was $17,000. I do have receipts and proof of every expense. 

What are your thoughts on this? Am I a strong audit candidate now that a real person will be analyzing my return? 

[Bsch4477]

You can’t deduct moving expenses on your federal return but your state might allow it. 

[JotikaT2]

As long as you have support for your deductions and can present that to the IRS to support the amounts reported on your tax return, you should not have any issues.  

Also, as Bsch4477 mentioned above, unless you are in the military, for federal purposes, you cannot deduction moving expenses on your federal return.  Please see this link for additional information.