The Internal Revenue Service reminds Alaska residents that the permanent fund dividend most will see Oct. 4 in their bank accounts is subject to federal tax.
The Alaska Permanent Fund Dividend must be reported on federal income tax returns. However, many child dependents will not have to file.
As long as a child’s total 2012 income, including permanent fund dividend and Native corporations dividends, stays below $1,900 they will avoid an IRS “kiddie tax,” according to a Sept. 21 IRS release.
“Dependent children whose only income is the 2012 PFD will not be required to file a tax return this year,” according to the release.
The IRS recommends Alaskans set aside a portion of the permanent fund dividend to cover federal taxes. Taxpayers can also make an estimated payment in advance.
For more information visit www.irs.gov and search using key words in quotes "Around the Nation Alaska" or call (800) 829-1040.
• Contact reporter Russell Stigall at 523-2276 or at email@example.com.