Given today's economy, an extra few hundred dollars would come in mighty handy for anyone. But if you're a retiree or a disabled veteran on a fixed income, that amount can be a windfall.
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TAX REBATES
More than 50,000 retirees and disabled veterans in the county could be eligible for an economic stimulus check but haven't received one because they didn't file a 2007 income tax return.
Those interested in finding out if they qualify can call AARP's Tax-Aide Program at (888) 227-7669. People can also call the IRS at (800) 829-1040 or go to irs.gov, which offers information on stimulus checks.
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The Internal Revenue Service is trying to reach 52,000 such people in San Diego County who might be eligible for a stimulus rebate check but haven't received one because they didn't file a 2007 income tax return.
Many retirees and disabled veterans don't file yearly income taxes because their earnings are meager or made up entirely of federal benefits – such as Social Security payments – which are not taxable.
The problem is, they can't get their rebates unless they file.
Nationally, as many as 5.2 million people may be in that situation. Of the 52,000 in the county, nearly 20,000 are in the city of San Diego.
“The bulk don't file yearly and we're trying to find them,” said Raphael Tulino, an IRS spokesman.
The checks range from $300 to $600 for individuals and $600 to $1,200 for married couples, depending on income. Individuals who qualify for a payment may receive an additional $300 for each qualifying dependent younger than 17. The majority of people being sought are in the lower-income bracket.
The IRS, working through the U.S. Social Security Administration and the Department of Veterans Affairs, has sent letters to those believed to be eligible, explaining that they need to file a 2007 tax return. Letters will go out again in July and August.
The local office of Disabled American Veterans is trying to educate veterans about the process, said Leroy Acosta, assistant supervisor of the San Diego location.
Acosta said some veterans may be hesitant to apply for the stimulus check because they've run into difficulties with the federal government when it comes to getting benefits or help.
The San Diego County Department of Aging & Independence Services can't be of much assistance because it has no mechanism to reach all the county's seniors, spokeswoman Denise Nelesen said.
Still, she said, “we'll certainly do whatever we can” to help the IRS because the money could be a real bonus to people on fixed incomes.
Those who qualify for the rebate may not be responding to the IRS for a range of reasons, Tulino said. Some may feel they don't qualify or that the process is too complicated, or they fear they'll be required to file again next year or that, if they do file, they'll be taxed.
None of that is true, he said.
It's a one-time deal, which the law requires when it comes to receiving the stimulus check, he said. The tax return form, which also has been mailed to those eligible, is simple to fill out – just a couple of lines. And those filing won't face any tax, because their benefits aren't taxable.
It's no big deal that they missed the April 15 filing deadline because they're not responsible for any taxes, Tulino added. They won't be penalized or have an IRS agent knocking at the door.
Initially, the government estimated that about 20 million retirees and disabled veterans didn't file a return for 2007. So far, 74 percent have either filed a return or a joint return or were found not to qualify. People need to have an income of at least $3,000 to get the stimulus check.
In all, the government is sending out $110 billion as part of a plan to stimulate the economy, which is teetering toward recession. More than 124 million checks are being distributed in the hopes that people will spend, not bank.
The IRS is also working with national organizations such as AARP, the National Council on Aging, United Way of America and the National Disability Institute to push the message.
Folks have until Oct. 15 to file if they want to receive the stimulus check this year. They can claim it later if they're willing to wait for their money. The money that isn't forwarded to citizens stays in the U.S. Treasury, Tulino said.
AARP runs its Tax-Aide Program during the tax season, but it is extending the program to help people see if they qualify for the rebate, said Charee Gillins, a spokeswoman for AARP in California.
She thinks people may simply not believe they qualify, given that they don't normally file. “They might not think it's for them.”
Michael Stetz: (619) 293-1720; michael.stetz@uniontrib.com
