ALASKA
separate property state

 

NO STATE TAX

Alaska Permanent Fund Dividends are available to qualified residents of Alaska. The correct amount for the 2017 Alaska Permanent Fund Dividend is $1,100

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.

1040 Form 1040A Form 1040EZ Form Child's Dividends

1040 Form

Alaska Permanent Fund Dividends should be entered on line 21 under Other Income.  This is done by Linking to Wkt 7, Line 21, Other Income sheet.

Wkt 7 - Line 21: Other Income sheet.  In the Type of other income field enter a description of the income.  In the Amount column enter the amount(s) received. In this example we've reported Alaska Permanent Funds Dividends for both the taxpayer and spouse.

1040A Form

Alaska Permanent Fund Dividends should be entered on line 13 of the Income section of Form 1040A.  Only enter the total of amounts paid to the taxpayer and spouse.  Do not include any dividends received by dependents.

1040EZ Form

Alaska Permanent Fund Dividends should be entered on line 3 of the income section of Form 1040EZ. Enter the total received by the taxpayer and spouse, (if filing jointly.)

Parents can elect to report their child's Alaska Permanent Fund Dividends as income on their tax return.  If a child's only income is interest and dividends (including Alaska Permanent Fund Dividends) and certain other conditions are met, a parent can elect to include the child's income on the parent's return.  If this election is made, the child does not have to file a return.  This is done by completing a 8814 Form - Parents' Election to Report Child's Interest and Dividends. The child must be under age 19, (or under age 24 if a full-time student.)

A child who has received ONLY an Alaska Permanent Fund Dividend during the tax year will NOT have to report the income. If, however, the child has received other income and/or dividends totaling more than $1,000, the income is required to be reported. In a case such as this, the parent(s) may elect to report the income on their tax return using IRS Form 8814. Any 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.) If the Taxpayer files Form 8814, they must file Form 1040.