Alaskans do not owe tax on the entire sum of their PFD check from last year.
A February. 10 announcement issued by the IRS stated that the energy relief portion of the dividend won’t be taxed. Alaskans have to pay tax on the $2,622 dividend and will be subject to the federal income tax just as it is each year.
Allegra Hamer serves as the coordinator for Alaska for the AARP Foundation’s tax-free Tax-Aide Program. She stated that this benefit could make a huge saving in the case of Alaska families.
“For a family with two adult and 2 kids For instance, if you assume they’re in a 10 percent or tax bracket of 12 that’s between $250 and $300 more to put into their pocket instead of going into the IRS the IRS’s pocket,” Hamer said.
If you haven’t done your taxes yet, and you’re using an online program, Hamer said to simply include the $2,622 figure for this year’s Alaska Permanent Fund Dividend when you get to”other income” in the “other earnings” section. The energy relief amount doesn’t have to be listed anywhere on your tax forms.
If you’ve already filed and claimed the full amount of $3,284, Hamer recommended filing an amending your tax return to recover the extra amount. Her firm has been in contact with clients who filed prior to the IRS announcement to assist them with the changes and hopes that tax preparers who are paid are also doing the same.
Hamer suggested that you make an amendment using tax software programs too, once you’ve taken it taken off of the “draft forms.” However, should you bet on the IRS rectifying the error, Hamer said not to be expecting to hear from them anytime soon.
“I do not know what the IRS will deal with that,” she said. “So they might not get a response from IRS in any way. In the event that they do, it could be a year , or one year and a half further down the line.”
The deadline for filing your personal tax return for 2022 is April 18.
