In February 2025, Alaska will distribute a $1,702 payment to eligible residents through the Permanent Fund Dividend (PFD) program.
This annual dividend, derived from the state’s oil and gas revenues, reflects a nearly 30% increase from the previous year, underscoring Alaska’s commitment to sharing its resource wealth with its citizens.
Understanding the Permanent Fund Dividend (PFD)
Established in 1976, the Alaska Permanent Fund was created to manage the state’s oil revenue and ensure that a portion benefits its residents.
The PFD program annually distributes a share of the fund’s earnings to qualified Alaskans, providing financial support for essentials like housing, food, and healthcare.
Eligibility Criteria for the 2025 PFD
To qualify for the 2025 PFD payment, applicants must meet the following requirements:
- Residency: Must have been a resident of Alaska for the entire 2024 calendar year.
- Intent: At the time of application, must intend to remain an Alaska resident indefinitely.
- Absence Limitations: Should not have been absent from Alaska for more than 180 days during 2024, unless the absence falls under allowable categories such as military service, education, or medical treatment.
- Legal Compliance: Must not have been convicted of a felony or incarcerated for a felony conviction during 2024. Additionally, should not have been incarcerated for a misdemeanor if there is a prior felony or multiple misdemeanors since January 1, 1997.
- Residency Claims Elsewhere: Must not have claimed residency in another state or country or received benefits as a result of such claims since December 31, 2023.
- Physical Presence: Must have been physically present in Alaska for at least 72 consecutive hours during 2023 or 2024.
Application Process and Deadlines
The application window for the 2025 PFD is open from January 1 to March 31, 2025. Applicants are encouraged to apply online through the official PFD website for a more efficient process. Paper applications are also available at designated distribution centers across the state.
Payment Distribution Schedule
PFD payments are disbursed based on the status of applications. For 2024 (and prior year) applications that are in “Eligible-Not Paid” status as of specific dates, the distribution schedule is as follows:
| Application Status Date | Payment Distribution Date |
|---|---|
| January 8, 2025 | January 16, 2025 |
| February 12, 2025 | February 20, 2025 |
| March 12, 2025 | March 20, 2025 |
Applicants can monitor the status of their applications through the “myPFD” portal on the official PFD website.
Tax Implications
The entire $1,702 PFD payment is considered taxable income for federal income tax purposes. Recipients are required to report this amount on their federal tax returns.
The Internal Revenue Service (IRS) has clarified that Alaska taxpayers must include the full PFD amount, including any energy relief payment portions, as income on Schedule 1 (Form 1040), line 8g.
Key Considerations for Applicants
- Timely Application: Submitting applications within the designated period ensures eligibility for the 2025 dividend.
- Accurate Information: Providing complete and accurate information can prevent delays in processing and payment.
- Stay Informed: Regularly checking the official PFD website and the “myPFD” portal can provide updates on application status and any changes to the program.
The Alaska Permanent Fund Dividend continues to play a vital role in supporting residents by distributing a portion of the state’s resource wealth.
Eligible Alaskans are encouraged to apply promptly and ensure they meet all requirements to benefit from the 2025 dividend.
FAQs
What is the amount of the 2025 PFD payment?
The 2025 PFD payment is $1,702 per eligible resident.
When is the application deadline for the 2025 PFD?
The application period closes on March 31, 2025.
Is the PFD payment taxable?
Yes, the entire $1,702 PFD payment is taxable and should be reported on your federal income tax return.
