The PFD program, which stands for the Permanent Fund Dividend, was established in 1976 by constitutional amendment. Its objective is to reserve 25% of mineral royalties, primarily from oil, for current and future generations. The resources are managed as state property and distributed among hundreds of thousands of beneficiaries.
The Alaska Permanent Fund Corporation (APFC) was established in 1980 to manage investments. The first dividend was distributed in 1982, granting $1,000 per qualified resident. The model has operated uninterruptedly ever since and is distributed to all Alaska residents.
PFD stimulus check payments: the tentative amount for 2025
The amounts have varied depending on financial performance and legislative decisions. In 2022, it reached a record high of $3,284. For 2024, the payment was $1,702, a similar amount to the amount expected to be distributed in 2025.
Payments for the 2025 PFD will begin in October, according to the Alaska Department of Revenue. Applicants who met the deadlines and requirements will receive deposits during that period. The exact dates will be announced in September. The process follows the operating schedule established annually.
The official amount for the 2025 dividend, according to some local sources, could be $1,702 per eligible person. This amount includes the regular payment plus a state-approved energy relief bonus. The figure was determined using a legal formula tied to the fund’s performance.
To qualify for the 2025 PFD, applicants must be Alaska residents for all of 2024. They must maintain the intent of indefinite residence at the time of application. “Claims for simultaneous residence in other states are not accepted,” the rules state.
Candidates cannot have any felony convictions during 2024. Restrictions apply if they were incarcerated for certain offenses that year. Full compliance with the criteria is rigorously verified.
The application deadline was March 31, 2025. Later applications were not accepted under any circumstances. This annual deadline is non-negotiable, according to the program administration.
The exact number of recipients by 2025 has not been officially announced. In previous years, more than 600,000 residents received the benefit. Final statistics will be released soon through official channels.
Alaska PFD payments: IRS tax obligations
Alaska PFD payments may be subject to federal income tax, depending on the beneficiary’s circumstances. The IRS classifies these amounts as taxable income in most cases, following general taxation rules.
According to the IRS, the PFD is considered ordinary income and must be reported on Form 1040. It does not qualify as an exempt social benefit because it comes from Alaska Permanent Fund investment earnings, not welfare programs.
How to report the PFD on your tax return?
Taxpayers should include the total amount received in the “other income” section of Form 1040. The State of Alaska sends a Form 1099-MISC to the recipients, detailing the amount paid.
The IRS may impose penalties for underreporting income if the PFD is omitted from the return. In the event of an audit, the taxpayer will be required to pay the omitted taxes plus interest.
Alaska has no state income tax, so the PFD is not taxed locally. However, residents who pay taxes in other states should check whether their jurisdiction applies withholding.
