The final scheduled round of stimulus checks rolled out July 11, leaving some wondering, "Where's my check?"
Some were counting on the cash for anything from high-definition TVs to paying off property taxes and credit card bills.
But those who owe child support, back taxes, or who are in default of student loans, for example, saw their stimulus bonus seized or reduced.
And checks will not be coming for retirees, veterans, and soldiers getting combat pay if they did not file a tax return.
Many are not required to file a tax return because their benefits aren't taxable. But this year, such groups must file to receive a stimulus payment.
"To a lot of these folks, April 15 is just another day on the calendar," said David Stewart, regional spokesman for the Internal Revenue Service.
But it's not too late. They can claim their stimulus checks if they file by Oct. 15.
Those who miss that deadline will be out of luck.
According to the IRS, about 74 percent of Social Security and Veterans Affairs beneficiaries have filed a return, or been identified as ineligible for the stimulus payment — such as those who can be claimed as dependents on another person's return.
But more than 5 million others, who potentially can get a stimulus check, have not filed a return.
Most can file the basic form 1040A. "There are only two lines that they need to fill out with numbers," one of which is a Social Security number, Stewart explained. The only other item to complete is the signature line.
"If they are filling out the 1040A, I recommend they write, in red pen [on the top of the form], 'stimulus payment,' and that way it gets moved to the top of the pile for processing," Stewart said.
Prior to April 15, the Lancaster County Office of Aging was deluged with walk-ins and phone calls from seniors asking if they would get stimulus checks, said Executive Director Jacqueline A. Burch.
The agency referred them to the IRS and the Red Cross Volunteer Income Tax Assistance program, she said.
"I think people aren't wholly aware that they have until Oct.15 to get this thing filed," Burch said.
Paying upTaxpayers who have defaulted on student loans will see their stimulus checks evaporate before they hit the mailbox. The money will be applied to their outstanding debt.
It's the same for parents who are behind in child support obligations.
The Federal Income Tax Refund Offset Program, launched in 1984, recovers delinquent child support debts from taxpayers in all 50 states by garnishing tax refunds, including economic stimulus payments.
Intercepted payments go to state governments, which distribute the money to local agencies.
In Pennsylvania, that's the Domestic Relations Section in each county. All 67 counties cooperate with the Department of Public Welfare, Bureau of Child Support Enforcement, which reports delinquencies to the federal government.
The state keeps a fee of $25. The rest of the intercepted money is applied to the taxpayer's child support account, and paid to the custodial parent.
Last year, $1.8 million in back child support was collected through the offset program in Lancaster County.
Bruce Martin, deputy director of Lancaster County Domestic Relations, said many payers actually like the program because it helps get them caught up quickly.
Few parents who owe money should be surprised by their missing or depleted stimulus check.
Said Martin, "When a case meets the eligibility requirements, a notice is sent to [the debtor]. ...Then, if they believe there is a mistake they can contact the agency to remedy the case."
IRS RULES
Following is information from the IRS Web site —
www.irs.gov — that explains economic stimulus payments:
Basic eligibility requirements•Individuals or families must have at least $3,000 in qualifying income, which can be income from or in combination with Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and earned income.
•You must have Social Security numbers. Spouses and children of married military personnel are not required to have Social Security numbers.
•You cannot be eligible to be claimed as dependents on another's tax return.
•You must file a 2007 tax return.
Payment amountsThe minimum basic payment is $600 for singles and $1,200 for married couples. Many parents also qualify to receive an additional $300 per child born after Dec. 31, 1990.
Your stimulus payment may be less than the maximum for one or more of the following reasons:
•Payment amounts begin to phase out for individuals with adjusted gross incomes greater than $75,000 and married couples filing jointly with adjusted gross incomes greater than $150,000.
•You are single and your net income tax liablity is less than $600.
•You are married and your net income tax liability is less than $1,200.
•You owe back taxes that reduced your payment.
•You have nontax federal debts such as unpaid student loans or child-support obligations that reduced your payment.
Around the time you receive your payment, you will also receive a notice from the IRS explaining how your payment was calculated. You should keep this notice as a record of your economic stimulus payment. In addition, you'll get a separate notice if you owe back taxes or nontax debts that were offset or deducted from your stimulus payment.
Jeannette Scott is a Sunday News staff writer. Contact her at jscott@lnpnews.com or at 291-8689.
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