Friday Financially Savvy Links – Ask the Tax Expert Edition

by Lynnae on January 22, 2010 · 6 comments

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.

Tax

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.

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 }

1 FFB January 22, 2010 at 5:28 am

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.

Reply

2 Matt Jabs January 22, 2010 at 8:38 am

That is cool that you may be able to reclaim the loss!

Reply

3 Angelsong January 22, 2010 at 8:47 am

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.

Reply

4 SFaith January 22, 2010 at 12:14 pm

Thanks for the Turbo Tax information. I have a question I need to ask about business expenses.

Reply

5 Joy Wilson January 22, 2010 at 5:02 pm

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

Reply

6 handicappers January 22, 2010 at 11:02 pm

Thanks for the Turbo Tax information. I have a question I need to ask about business expenses.

Reply

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