The Alaska Permanent Fund was created in 1976 to help preserve a portion of the state's oil revenue for future generations. Eligible Alaska residents may receive an annual Permanent Fund Dividend (PFD), which is generally taxable for federal income tax purposes.
If you received a PFD, you'll need to report it on your federal income tax return, even if part or all of it was garnished.
How Much Is the Alaska Permanent Fund Dividend?
The dividend amount can change each year. Visit the Alaska Department of Revenue for the current year's payment amount and eligibility information. Dividend recipients typically receive a Form 1099-MISC showing the amount paid.
How to Report Your Alaska Permanent Fund Dividend
Most taxpayers receive a Form 1099-MISC with the dividend reported in Box 3, Other Income.
You can report the dividend in either of the following ways:
Option 1: Report as an Alaska Permanent Fund Dividend
- Go to Federal
- Select Income
- Select Less Common Income
- Select Other Income
- Choose Alaska Permanent Fund Dividend
The income will be reported on Schedule 1 (Form 1040), line 8g.
Option 2: Enter Your Form 1099-MISC
- Go to Federal
- Select Income
- Select 1099-MISC
- Enter the amount shown in Box 3
The income will be reported as other income on Schedule 1 (Form 1040).
What If My Dividend Was Garnished?
You must report the full dividend amount as taxable income, even if some or all of it was withheld to pay a debt or obligation. The IRS considers the entire payment taxable to you. Failing to report the dividend may result in penalties or other IRS actions.
Reporting a Dependent Child's Alaska Permanent Fund Dividend
If your dependent child received an Alaska Permanent Fund Dividend, the income must also be reported to the IRS. You generally have two options:
- File a separate tax return for the child and report the dividend from Form 1099-MISC.
- Include the child's income on your return by filing Form 8814, Parents' Election to Report Child's Interest and Dividends, if the child meets the eligibility requirements.
Depending on the child's age and filing situation, the IRS may require a paper-filed return in certain circumstances.
Additional Information
- Alaska Permanent Fund Dividends are taxable for federal income tax purposes.
- Dividend payments are generally reported on Form 1099-MISC, Box 3.
- The State of Alaska's Federal Tax Identification Number is 92-6001185.
- Keep your Form 1099-MISC with your tax records in case the IRS requests verification.
Need More Information?
For the latest dividend amounts, payment details, and tax information, visit the Alaska Department of Revenue Permanent Fund Dividend website.