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.
Dividends are reported on form 1099-Misc 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 the
- 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.
Special tax rules apply to children under age 18, and certain older children who receive more than $2,100 of unearned income, including the Permanent Fund Dividend and taxable Native Corporation Dividends. Some people refer to this as the “kiddie tax.” The 2017 Permanent Fund Dividend of $1,100 will not trigger the “kiddie tax” rules for most children this year, unless they have additional unearned income that brings their total above the $1,900 threshold. However, because dependents must file a tax return if they have unearned income greater than $1,050, every dependent who received the PFD will be required to file a tax return.
Tax Reporting for Dependents:
The IRS establishes a filing threshold for unearned income received by a minor child. For 2019, the threshold is $1,100. The Alaska Permanent Fund dividend for 2019 is $1,606. Therefore, you have two options for filing on behalf of the dependent:
- 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 state's Federal Tax Identification number is 92-6001185.
For additional information about the Alaska Permanent Fund, please click here.