The Alaska Permanent Fund Dividend (PFD) is a unique program designed to share the wealth generated from Alaska’s mineral resources, primarily oil, with its residents.
Established in 1976 by a constitutional amendment, the program was designed to reserve 25% of the state’s mineral royalties for both current and future generations. The PFD is managed by the Alaska Permanent Fund Corporation (APFC), which was set up in 1980 to handle the investments.
History and Overview of the PFD
The PFD program was first introduced in 1982 when it distributed $1,000 to each qualified resident. Since then, the program has operated every year, with the dividend amounts varying based on the fund’s performance and legislative decisions.
For example, in 2022, the dividend reached a record high of $3,284, while in 2024, the payment was $1,702. The amount for 2025 is expected to be similar, possibly around $1,702 per eligible resident.
PFD Stimulus Check Payments: What to Expect in 2025
For 2025, the PFD payments are expected to start in October. The exact dates will be announced by the Alaska Department of Revenue in September. The dividend amount for 2025 is tentatively set to be $1,702, which includes the regular dividend plus an energy relief bonus approved by the state.
This amount is determined by a legal formula that takes into account the performance of the Alaska Permanent Fund.
To qualify for the 2025 PFD, applicants must meet the following requirements:
- Residency: Applicants must have been Alaska residents for the entire year of 2024 and must intend to maintain indefinite residence in the state.
- Felony Convictions: Applicants cannot have felony convictions during 2024. If someone was incarcerated for certain offenses that year, they may be disqualified.
- Application Deadline: The deadline for applications was March 31, 2025. No applications will be accepted after this date.
The PFD has consistently reached over 600,000 residents in previous years, but the exact number for 2025 will be confirmed closer to the payment date.
Tax Implications of the Alaska PFD Payments
While Alaska has no state income tax, the PFD payments may still be subject to federal income tax. The IRS considers these payments to be taxable income because they come from the earnings of the Alaska Permanent Fund, rather than from a welfare program.
To report the PFD on your federal tax return, you need to include the amount in the “other income” section of Form 1040. The State of Alaska sends out a Form 1099-MISC to each recipient, detailing the exact amount received. It’s important to report the full amount on your tax return to avoid penalties for underreporting income.
Although Alaska does not impose any local state income tax on the PFD, residents who pay taxes in other states should check if their state applies any withholding on the dividend.