Receiving a stimulus check depends on filing taxes this year

Janice Peterson

The Internal Revenue Service announced Thursday it is still trying to reach approximately 5.2 million disabled veterans and retirees who have yet to receive an economic stimulus check.

Bill Brunson, spokesman for the IRS, said of the 20 million citizens around the country who do not usually file income taxes but needed to do so to receive a stimulus check, approximately 26 percent have not yet filed a return. That amounts to approximately 30,000 people in Utah alone.

"In Utah, it is 28 percent remaining to file," he said.

The IRS has been reaching out for several months to groups that are not obligated to file a return, including those receiving Social Security or Veterans Affairs benefits. Brunson said the agency sent out notices in March containing tax forms, examples and information about the stimulus. Offices around the country were also open for a Super Saturday in March to benefit these groups by offering free filings. A second notice will soon be sent out to the remaining residents with similar information.

Brunson said it is important for these groups to file their taxes, and soon. In order to make the process more efficient, he advised that the 1040 and 1040A forms be filled out with "economic stimulus" written in red at the top, and information given for direct deposit.

"That would shorten the time frame for the recipient to receive those funds," he said.

Using direct deposit will also help the IRS by shortening employee hours on the checks and avoiding any money losses in the mail. Brunson said it is important for the returns to be sent in soon to ensure that a check comes to the taxpayer at all.

"The issue is that we cannot generate a check after Dec. 31, 2008," he said.

Returns can take as long as six weeks to process, so filers should be sure to send in their taxes before Oct. 15. Aside from sending out a second notice, Brunson said the agency is considering an event later in the summer to help with tax returns. Because retirees and disabled veterans often do not need to file a return, Brunson said many may not have been aware they need to now, and some of the facts about the stimulus may be confusing.

A common misconception, he said, is many people may believe the stimulus check would decrease the amount of money received from other sources. The stimulus check is not taxable, and it has no effect on Social Security or disability checks.

"Awareness could be a very big issue in this area," he said.

In Utah, 29,627 of the residents in these groups have not filed a return, including 12,000 Salt Lake County residents and 4,000 people in Utah County. Laura Polacheck, director of advocacy for AARP Utah, said one reason for the high numbers may be that elderly populations are hard to contact and they may not be aware they need to file.

Polacheck said the AARP has sent out information in its newsletters about filing a return, but many of its patrons may not have e-mail and other newer contact resources. For any organization offering assistance to different groups, it is often difficult to communicate the need to file.

"If you haven't filed taxes in awhile, this might not be something you would be paying attention to," she said.

Polacheck said the process of filing paperwork for aid can be overwhelming for many people, whether it is for government assistance or filling out tax forms. The AARP has a national volunteer arm, Tax-Aide, to help with the process and make it less daunting.

"You don't need to know the tax code inside and out to qualify [for the stimulus], and there is help available," she said.

Jack Dahl, state coordinator for Tax-Aide, said his office has seen more people this year because of the stimulus. Of the 7,000 people who needed assistance, approximately 1,000 showed up solely to file for the check.

"I would say 10 to 15 percent of the people this year came in because they had to file [to receive a check]," he said.

Polacheck said it is important for veterans and retirees to file for a return, and it is not too late to do so. The organization has tried to get the word out so that every person has a chance to receive a check.

"We certainly think, like anything else, it's important for people to know their resources, especially when $300 can make a big difference for them," she said.

For more information on free filing services, contact the local IRS office or United Way of Utah County.