On Thursday, the Alaska Department of Revenue released the dividend amount for the 2021 Permanent Fund.
According to the Department of Health and Human Services, eligible Alaskans will begin receiving $1,114 in early-to-mid October. As of Oct. 11, those who filed electronically and selected direct deposit will begin receiving their money. Beginning on Oct. 25, customers desiring paper checks will be able to apply for and receive financial assistance.
According to the PFD Division, 90% of Alaskans submitted electronically in 2021, and 95% signed electronically. According to the revenue department, these are both record numbers. In addition to speeding up and improving accuracy, electronic filing and signing is more convenient.
According to the revenue department, this will be the 40th year of the PFD, which has distributed more than $26 billion to Alaskans. It was $992 in PFD dividends last year.
Will Alaskans get a PFD in October 2020?
The Department of Revenue said Thursday that this year’s permanent fund dividend will be $1,114.
As of Oct. 11, those who filed electronically and selected direct deposit will get their PFDs. The first dividend checks will be mailed out to shareholders in the week of October 25.
By comparison, the expected sum is $14 more than what the Legislature had predicted. PFDs were budgeted before the number of recipients was known.
It’s a new record, according to the department: 90% of applications were submitted electronically.
How is the Alaska Permanent Fund dividend calculated?
Statute and regulation describe who is eligible to receive a Permanent Fund Dividend from the Alaska Legislature. Half of statutory net income averaged over the five most recent fiscal years is used to calculate the dividend for qualified Alaskans in a given year.
How much do Alaskans get paid for residency?
State-owned business, the Alaska Permanent Fund Corporation (APFC), manages the Alaska Permanent Fund (APF) (APFC). In 1976, under the leadership of Governor Jay Hammond and Attorney General Avrum Gross, Article 9, Section 15 of the Alaska State Constitution was ratified, creating the Alaska State Constitutional Court. Alaska’s Permanent Fund assets were administered by the Department of Revenue Treasury Division from February 1976 until April 1980, when the Alaska State Legislature established the APFC.
Funded by oil profits, the fund had a 2019 value of around $64 billion and had given out an average of about $1,600 per person yearly (adjusted to 2019 dollars). PFDs, which many authors see as the sole practical example of a Basic Income, have been the fund’s primary source of revenue.
How long do you have to live in Alaska for PFD?
Over the past five years, one must have spent at least 30 days in Alaska. All eligible Alaska residents must accompany military spouses and children who are only on active duty military assignments (such as a PCS) in order for them to preserve eligibility for a PFD.
How do I apply for the PFD?
Until 11:59 p.m. Wednesday, the Alaska Department of Revenue will accept applications for the 2021 PFD. Pfd.alaska.gov allows Alaska citizens to apply online or by mail.
In addition to the state’s PFD website, physical applications are available at distribution facilities across the state.
The state’s application deadline is Wednesday, but additional information, such as a birth certificate or evidence of residency, can be provided to the state beyond that date.
How much is the dividend in Alaska 2020?
Most Republican and Democratic amendments advocating for higher dividend payouts were defeated on Monday, as were those from independents and some Democrats.
At present spending levels, Alaska has a tiny surplus, but only if no dividends are paid out of the state’s budget.
On Thursday, the Senate passed a bill that distributes $400.5 million of that surplus, as well as $330 million from the state’s Statutory Budget Reserve to the dividend. $1,160 per individual works out to 630,000 recipients. The 2020 dividend per individual was $992.
There had been calls from Dunleavy and other members of the Republican minority in the House of Representatives for a higher payment, using additional money from the Alaska Permanent Fund’s earnings reserve.
There is enough money in the $82 billion fund to handle another withdrawal, but lawmakers have already spent all of the money they may legally take out of the fund.
A statute implemented in 2018 limits the amount of money that may be withdrawn in a particular calendar year, and despite Republican claims that a greater payout would aid Alaskans’ finances, a majority of the House refused to breach that limit.
“We must compensate our workers and assist rural Alaskans and our subsistence hunters this year, according to Big Lake Republican Rep. Kevin McCabe.
A D-Anchorage Rep. Ivy Spohnholz countered by pointing out that the state’s general-purpose revenue is now two-thirds Permanent Fund investments. In the long run, spending more now means less money invested in the fund, less money generated later, and may lead to budget reductions or higher taxes.
“Rural Alaska will suffer for years to come if the whole dividend is paid in 2021, says Rep. Tiffany Zulkosky, D-Bethel.
A conference committee will be formed to come up with a solution if amendments are made to the bill, according to Senate President Peter Micciche of Soldotna.
Dunleavy will have the final word, no matter what happens. As a result of Tuesday’s vote, he took to social media to criticize the outcome “Big government prevailed, while Alaskans lost. This is terrible and needs to be addressed quickly. “Alaskans are entitled to a better standard of living.”
In response to Rep. Zack Fields’ claim that Dunleavy’s plan would result in the highest expenditure increase in state history, Fields continued by labeling Dunleavy a hypocrite “hypocrite and demagogue,” he said.
The state House and Senate enacted a dividend earlier this year, but Governor Dunleavy vetoed it. Because of a legislative snafu, the dividend was initially considered to be merely $525 per individual.
Budget analysts now estimate that absent the veto, a $1,025 dividend would have been paid. This is due to a subsequent lawsuit and legal interpretation by the Alaska Department of Law.
Legally speaking, the Dunleavy government officials told the Senate Finance Committee on Monday that the Statutory Budget Reserve is no longer accessible for use in the dividend payment.
Is the Alaska Permanent Fund dividend taxable?
The income from Alaska Permanent Fund Dividends and Resource Rebate payments is subject to federal income taxation, regardless of whether the receiver is an adult or a minor.
