Alaska Permanent Fund dividends for both adults and children are taxable for federal income tax purposes.
Even if part or all of your dividend was garnished, the entire amount of the dividend must be reported as taxable income.
If you fail to report the dividend on your federal income tax return, a negligence penalty or other sanctions may be imposed on you.
The amount of the 2004 permanent fund dividend was $919.84. The state's Federal Tax Identification number is 92-6001185.
Report the amount of your or your child's dividend on IRS form 1040 on the line for "Other Income."
If you are eligible to file forms 1040A, 1040EZ or Tele File, you may report this amount on the line for "Unemployment Compensation."
If taxes were withheld from your or your child's PFD, report the withheld amount on IRS form 1040 on the line for "Federal Tax Withheld."
If a refund is due after you report the dividend and taxes withheld, the IRS will issue any refund due.
The Permanent Fund Dividend Division does not provide tax advice to dividend recipients.
Contact the IRS by calling (800) 829-1040, visit their Web site at www.irs.gov or contact a tax preparer in your area for additional information.
Peninsula Clarion ©2014. All Rights Reserved.