ALASKA
separate property state

 

NO STATE TAX

Alaska Permanent Fund Dividends are available to qualified residents of Alaska. The correct amount for the 2020 Alaska Permanent Fund Dividend is $992

By IRS rules, you MUST report this under Other Income on federal Form 1040.  DO NOT report it on Schedule B as a dividend because this will affect the taxpayer's earned income credit.

Alaska Permanent Fund Dividends should be entered on line 8 under Other Income.  This is done by Linking to Sch 1, Additional Income and Adjustments to Inome.

Sch. 1, Additional Income and Adjustments Permanent Funds Dividend amounts are listed on Line 8 of Sch. 1. Link to Wkt7, Other Income..

Wkt7 Other Income

Alaska Permanent Fund Dividends should be entered on the blank lines starting at Line 17 of Wkt7.  Enter a description of what the income is under "Describe". Only enter the total of amounts paid to the taxpayer and spouse.  Enter a separate line for each, taxpayer and spouse, and identify them using "T" or "S". Do not include any dividends received by dependents.

A child who has received an Alaska Permanent Fund Dividend during the tax year may have to report the income on a tax return. A separate tax return can be filed for the child, reporting all income the child has received, or if the child's income consists solely of interest, dividends, capital gains distributions in addition to the Alaska Permanent Fund dividend, the parent can report the income on their tax return using IRS Form 8814. All other dividends and interest will be listed on the 8814 with the Alaska Permanent Fund Dividend. If the child received any capital gaid distributions, they must be listed as well. (Check the box indicating more than one attached Form 8814 only if multiple forms 8814 are on the return.) (NOTE: VITA preparers may only use IRS Form 8814 for Alaska residents receiving permanent fund dividends. )

Form 8814

If the only income for the child, in 2020, is the Alaska Permanent Fund Dividend, it will not have to be filed. However, if the child has other unearned income equaling, or exceeding, $109, either Form 8814 or a separate tax return must be prepared.

If a separate return will be prepared for the child, report the income as described above for a taxpayer,