Reminder: Alaska Permanent Fund Dividend is taxable for adults, kids

Flat screen televisions, vacations to warm locales and performance snow machines: the Alaska Permanent Fund Dividend can buy a lot of fun stuff, but don’t forget the tax man.

The permanent fund dividend is taxable income for federal income tax returns. Be sure to set aside enough to cover your tax bill, or consider making an estimated payment when you get your permanent fund dividend, said Internal Revenue Service spokesperson David Tucker. The permanent fund dividend is taxable income for both adults and children.

Special tax rules apply to children under age 18, and certain older children who receive more than $1,900 of unearned income, including the permanent fund dividend and taxable Native corporation dividends.

Because dependents must file a tax return if they have unearned income greater than $950, this year’s permanent fund dividend check of $1,174 means every dependent who received the permanent fund dividend will be required to file a tax return. However, it will not trigger special tax rules for most children this year, unless they have additional unearned income that brings their total above the $1,900 threshold.

Dependent children whose only income is the 2011 permanent fund dividend can choose to file a separate Form 1040-EZ, or parents can report their children’s dividend as part of their own tax return using Form 8814. However, using Form 8814 may benefit some parents who are eligible for the Child Tax Credit, as the credit will offset the total tax amount, including the child’s portion of the tax.

For more information on how to report the permanent fund dividend on the Federal Tax Return, contact the IRS at 800-829-1040 or visit www.IRS.gov and input the key words in quotes: “Around the Nation Alaska” in the top right search engine.

More

Thu, 01/19/2017 - 09:26

Around Town for Thursday, Jan. 19

Today, Jan. 19

Read more
Thu, 01/19/2017 - 09:21

This Day in Juneau History: Jan. 19, 1987

On Jan. 19, 1987, with revenues half of what they were the year before and an estimated budget deficit ranging from $700-$900 million, the 15th Alaska Legislature began working on the state’s enormous budget deficit. Everyone was present for the Legislature’s first day except for Sen. Frank Ferguson, D-Kotzebue, who resigned shortly after his election because of health problems. Taking his place was Kotzebue businessman and Native leader Willie Hensley, whom Gov. Steve Cowper appointed for the position until the 1988 elections.

Read more
Thu, 01/19/2017 - 09:21

Police & Fire for Thursday, Jan. 19, 2017

This report contains public information available to the Empire from law enforcement and public safety agencies. This report includes arrest and citation information, not conviction information. Anyone listed in this report is presumed innocent. Anyone with information about a crime can report a tip anonymously to juneaucrimeline.com.

Read more

CONTACT US

  • Switchboard: 907-586-3740
  • Circulation and Delivery: 907-586-3740
  • Newsroom Fax: 907-586-9097
  • Business Fax: 907-586-9097
  • Accounts Receivable: 907-523-2230
  • View the Staff Directory
  • or Send feedback

ADVERTISING

SUBSCRIBER SERVICES

SOCIAL NETWORKING