Dividends are reported on form 1099-Misc, box 3 to eligible residents who filed an application with the fund. Dividends for adults are taxable for federal income tax purposes. To report this in your account, go to:
- Federal Section
- Form 1099-Misc
Even if part or all of your dividend was garnished, the entire amount of the dividend must be reported as taxable income. If you fail to report the Permanent Fund Dividend on your federal income tax return, a negligence penalty or other sanctions may be imposed on you.
What is the Alaska Permanent Fund?
In 1976, as the Alaska pipeline construction neared completion, Alaskan voters approved a constitutional amendment to establish a dedicated fund: the Alaska Permanent Fund. It was designed to be an investment where at least twenty-five percent of the oil money would be put into a dedicated fund for future generations, who would no longer have oil as a resource.
Tax Reporting for Dependents:
If your dependent child has received a dividend for the Alaska Permanent Fund, the dividend must be reported to the IRS. You can elect to:
- File a return for the dependent child and claim the dividend on 1099-Misc box 3.
- Include the income on your (guardian) return by including Form 8814 in your return.
Please note that if the income is for a child under the age of 16, the return may need to be printed and mailed to the IRS.
- The amount of the 2023 Permanent Fund Dividend is $1,312.
- The state's Federal Tax Identification number is 92-6001185.