This week I received a press release from Turbo Tax, advertising the fact that you can ask a tax expert one question, free of charge, until the end of the month. Before I passed this information on to you, I thought I’d try the service myself, since I had a doozy of a question.
I sent in my question via email, and within minutes, a tax expert called me back. I asked my question, which took a little bit of explaining.
After I refinanced my mortgage, my mortgage company went bankrupt and bounced my escrow refund check. The company is still in the midst of bankruptcy hearings, and I haven’t seen my money. Can I write it off?
I think I stumped the tax guy. He told me he’d have to do a little research, and that he’d get back to me in about an hour. He actually called back just 20 minutes later, after consulting with someone who knew a little more about the legalities of my situation.
For those readers in the same boat, here’s the answer:
…this would be in the nature of a non-business bad debt. The year you deem it worthless you take a short term capital loss on Schedule D. See IRS Pub 550 for more details.
I was also told that if I decide that I’ll never see the money and take a deduction, if by some chance I happen to get a good escrow refund check this year, I will need to claim it as income on my 2010 taxes.
Deals of the Week
I receive a lot of deals in my inbox. When I find good ones, I pass them on to you!
- Free eCookbook: 31 Secret Restaurant Copycat Recipes featuring 53 pages of quick and easy recipes.
- Get a free desk calendar from Walgreens through tomorrow, using the code FREE4U. See the details at The Frugal Find.
- Get free shipping at Shutterfly with the code SHIP30.
- Get the Home Depot ad delivered right to your inbox. This is convenient for me, because I don’t get the paper, and I’ve always got home improvement projects going.
The Roundup
Here are some interesting reads from personal finance blogs this week.
- A big congratulations are in order for FiskalGeek, who is now Debt-Free! Make sure to read his story. It’s inspiring.
- Why You Should Check Your Credit Report Regularly – Good Financial Cents
- How I Love Thee ING Direct, Let Me Count The Ways – Free From Broke
- Alternatives to Traditional Savings Accounts – The Wisdom Journal
- How To Save Money – The 1,001 List Of Money Saving Tips And Ideas – Moolanomy
- Easy Strategies To Save Money On Auto Insurance – Amateur Asset Allocator
- How to Report Tax Fraud & Tax Cheats – Bargaineering
- Tax Credits for Home Buyers and Homeowners – Debt Free Adventure
Carnivals
I participated in the following carnivals this week: Carnival of Money Stories, Carnival of Personal Finance, Festival of Frugality, Money Hacks Carnival, and the Carnival of the Road to Financial Independence. Thanks to all the hosts!
Have a fantastic weekend!
Photo by alancleaver_2000.
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{ 6 comments… read them below or add one }
Thanks so much for the mention!
Great to know the Turbo Tax Ask A Question really works and they get back to you pretty quickly.
That is cool that you may be able to reclaim the loss!
I am always on the lookout for recipes and recipe sites. Thanks for the link to the free e-cookbook (and a new resource for more recipes.)
I also love lists of ways to save money, so another good link is always welcome. I already had signed up for the emails from Home Depot last week as I was browsing your blog pages. Funny how much I enjoy going to home improvement stores now that we own our home!
I hope your escrow situation is resolved soon.
Thanks for the Turbo Tax information. I have a question I need to ask about business expenses.
I miss counted my income i left out about $1100. my taxes has already been filed and excepted by irs. can i do amendment once i get my refund
Thanks for the Turbo Tax information. I have a question I need to ask about business expenses.