Friday Financially Savvy Links – Ask the Tax Expert Edition

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.