About 24,500 retired people and disabled veterans in Hawai'i might be missing out on an economic stimulus check because they didn't fill out the tax returns they needed to qualify.
Hawai'i has the second-highest percentage of retirees and disabled veterans who could claim rebates, but haven't, in the nation.
The IRS said 35 percent of the people in those two groups in Hawai'i have not claimed rebates. Only Alaska, at 37 percent, had a higher rate among the states. (The District of Columbia's rate was 39 percent.)
Nationally, the Internal Revenue Service has received filings from about 74 percent of those who wouldn't normally file returns because their Social Security and veterans benefits aren't taxed.
Now, retiree and veterans groups in Hawai'i are spreading the word that filing out a simple form by Oct. 15 could mean $300 or more from the federal government.
"The big problem is that it's still a confusing issue," said Bankole Idowu, state coordinator for the AARP-Hawai'i tax aid program.
The word he wants to spread is, "If you had Social Security — regular or disability — in excess of $3,000, you are almost surely entitled to that stimulus check. If you did not receive the check, you need to make sure nothing went wrong because you really should be eligible."
Those who received more than $3,000 in veterans benefits also qualify.
filing assistance
Although AARP's tax sites shut down for the year after the April 15 filing deadline, Idowu recently helped someone refile her returns because she hadn't realized that she had to include her Social Security benefits on her return to qualify for the check.
Others may be in a similar boat, he said, in part because about 2,000 retirees filed their returns before information about the stimulus package was available.
"All those people are filtering back in," he said.
Idowu said he can help O'ahu retirees, while the AARP information office can direct neighbor islanders to tax help in other counties.
According to IRS statistics, Honolulu has the largest number of nonfilers — more than 15,400 — followed by the Big Island, almost 4,600; Maui, about 3,000; Kaua'i, 1,400; and Kalawao, less than 10.
World War II veteran Henry Wong said the IRS outreach comes just in time for the American Legion's state convention, when he plans to spread the word to other veterans that they still have time to apply for the stimulus check.
"I can make an announcement during the convention. I can tell them, 'There's a couple bottles of beer waiting for you,' " he said.
Since both Wong and his wife had taxable income this year, he filed his return and already received his stimulus check, which he's using to pay for a hotel room at the convention.
Wong suspected that some veterans might not have filed because they didn't want to attract IRS attention.
"They shouldn't worry about that unless something is wrong, though," Wong said.
Others just might not know they're qualified, he said.
Mark Moses, director of the state's Office of Veterans Affairs, said he's published articles on the stimulus payments in his newsletter, which he thinks reaches about 40 percent of the 120,000 Hawai'i veterans. He's not sure why people haven't filed, but he's certain that they should.
"We strongly urge them to file to receive this benefit," Moses said. "It's an additional benefit everybody entitled should claim."
Veterans, he pointed out, earned all the entitlements they received and should take advantage of the stimulus package, too. "It's basically for all Americans. They deserve it no less than anyone else," he said.
tax rebates
The economic stimulus package Congress approved earlier this year makes most taxpayers eligible for a tax rebate of $600 for an individual or $1,200 for a married couple plus $300 for each dependent child.
The law also contained a provision for retirees whose main source of income is Social Security or a railroad retirement pension and disabled veterans who receive disability payments. The provision provides $300 stimulus payments for individuals and $600 for couples. To be eligible, people must receive benefits totaling at least $3,000 in benefits.
"In these hard economic times, several hundred dollars will make a big difference to those in our community living on fixed incomes," said U.S. Sen. Daniel K. Akaka, D-Hawai'i. "It's not too late — the deadline is Oct. 15. After that, the money will be gone forever, so now is the time to file."
To receive the money, retirees and disabled veterans have to file a 1040A tax return, even if they do not owe any taxes. The return only has to include some basic information — name, address, dependents, amount of income, direct deposit information and signatures.
"Some retirees and others who normally do not file a tax return may be eligible and not know it," said IRS Commissioner Douglas Shulman. "If you know of a retiree or a disabled veterans who might qualify, please pass along the information to them."
The IRS estimates that about 5.2 million senior citizens and disabled veterans who may be eligible for payments have not submitted the necessary form.
Reach Treena Shapiro at tshapiro@honoluluadvertiser.com and Dennis Camire at dcamire@gns.gannett.com.
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