WASHINGTON - Thousands of senior citizens in South Dakota have not yet taken advantage of the economic stimulus money that Congress approved in February.
Seventy-three percent of the 11,457 South Dakotans who still are eligible for the free money but have yet to file for it are 65 and older, according to information from the Internal Revenue Service. The minimum payment is $300 per person.
"With the rising costs of fuel, food and other goods, this is money that (seniors, veterans and the disabled) need and deserve," Sen.Tim Johnson, D-S.D., said Friday. "One of the goals of the stimulus bill was to reach those groups; I would hate for them to be excluded because they did not fill out a form."
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To be eligible for the payments, which are meant to energize the nation's ailing economy, recipients must have had at least $3,000 in qualifying income in 2007. Social Security benefits, Social Security disability insurance and veterans disability payments all count toward the $3,000 income requirement.
The only way to apply for the payment is to file a 2007 federal tax return with the IRS, even if you aren't normally required to file one. Although the deadline for filing federal income tax returns was April 15, the deadline for filing a tax return for purposes of receiving a stimulus check is Oct. 15. There is no penalty for those who do not owe any taxes and who file after April 15.
And the IRS will accept a good-faith estimate of income from those who receive Social Security or veterans disability, said Sioux Falls resident Charlotte Jaeschke, who worked as a volunteer tax preparer for AARP earlier this year. Many Social Security recipients who don't have to file annual tax forms throw away their 1099 Forms, Jaeschke said, and disabled veterans don't get the form because they never pay taxes on the checks they receive from the federal government.
"The IRS is trying to be really friendly about this," she said. "They're making every effort to get this money out."
Jaeschke said she isn't surprised that so many South Dakota seniors haven't filed for the money. People might be afraid to file because they don't want to draw the IRS' attention, she said, or maybe they don't know about the program or don't have anyone who can help them file a tax return.
"This is not scrutinized in that manner," Jaeschke said. "There won't be any red flags."
For more information, call the IRS Rebate Hotline at 866-234-2942.
Argus Leader wire services contributed to this report.
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