Ask Liz Weston

Get smart with your money

Liz Weston

Q&A: Delayed tax refunds

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Dear Liz: How long is too long for an IRS tax refund to be disbursed? I got my state tax refund in a matter of weeks. The IRS refund has been “under review” for almost five months.

Answer: A sizable surge in tax refund theft as well as a database breach that exposed more than 300,000 taxpayers’ returns have kept the IRS pretty busy. At the same time, big budget cuts have left the agency with fewer people to help with these issues.

Five months is a long wait, but people who have been the victims of refund theft report waiting nine months or more to get their money back.

You can try contacting the IRS directly at (800) 829-1040, although you’re likely to be on hold for quite a while. If you can’t get a response, you can contact the IRS’ Taxpayer Advocate at (877) 777-4778, but be advised its resources have been trimmed as well and it may just refer you back to the IRS.

Six mistakes people make when giving to charity

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Christmas donation, Concept of charityHere is a helpful rule of thumb for donating to charities this holiday season: Take your time.

People waste billions of dollars on inefficient, poorly run or downright fraudulent charities because they do not bother to research where their money is going.

And even donations to legitimate causes can be squandered by last-minute, impulsive or scattershot giving, said Daniel Borochoff, president and founder of nonprofit watchdog Charity Watch (www.charitywatch.org/).

In my latest for Reuters, why you should carefully consider your holiday donations.

Wednesday’s need-to-know money news

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giftcardsToday’s top story: How to protect your gift cards this holiday season. Also in the news: Getting the most out of your credit cards over the holidays, where to cash a check without paying high fees, and personal finance mythbusting.

Why Gift Cards Aren’t As Secure As Your Credit Cards
Protecting your presents.

How to get the most out of your credit cards over the holidays
Making your credit cards work for you.

Where to Cash a Check Without Paying High Fees
Keeping as much of your money as possible.

5 personal finance myths you probably still believe
Mythbusting!

Tuesday’s need-to-know money news

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inside-passportToday’s top story: How being behind on your taxes could affect your travel plans. Also in the news: How to determine who you can claim as a dependent, financial steps to take when you’re on your own, and how to avoid costly credit card traps.

Haven’t Paid Your Taxes? You May Need to Cancel Your Travel Plans
Your passport could be in jeopardy.

This IRS Tool Tells You If You Can Claim a Dependent
Finding your tax breaks.

7 Financial Steps to Take Once You’re on Your Own
It’s a whole new world out there.

How to Avoid 5 Costly Credit Card Traps
Don’t fall in.

Monday’s need-to-know money news

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best-credit-cards-for-holiday-shopping-2013Today’s top story: Smart ways to use credit cards over the holidays. Also in the news: Personal finance tips people wish they’d know when they were younger, how to survive Black Friday, and steps you should take before the next financial crash.

5 Smart Ways to Use Credit Cards During the Holidays
Protecting your money and your data.

5 Personal Finance Tips Most People Wish They’d Known When They Were Younger
It’s never too late.

Surviving Black Friday: How to set a budget and stick to it
Resisting temptation.

Steps You Must Take Before the Next Financial Crash
Trouble could be on the horizon.

Q&A: Cashing mature savings bonds

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Dear Liz: I have savings bonds that have achieved full face value. What should I do? Keep them indefinitely or cash them in to fund my Roth account or what? Am I correct that once they have matured, there’s no more money to be made off them?

Answer: You are correct. Once savings bonds have matured and stopped earning interest, they should be redeemed and the money put to work elsewhere. EE, H and I bonds mature in 30 years, while HH bonds mature in 20 years. You can find more information at TreasuryDirect.gov.

Funding a Roth is a great idea for deploying these funds. Other good uses are paying off high-rate debt or building an emergency fund.