Have you ever wanted to move to another city and while you are thinking about the possibility, everything gets complicated because you do not have the necessary money for that? Well, several cities in our country pay their inhabitants to live there. Yes! You have read correctly. There is even a state that offers these types of payments: almost all the inhabitants who live in Alaska, receive a payment for just living there.
Many local governments pay their inhabitants to encourage people to remain in those cities and boost the economy and life quality there. Kansas, Nebraska, and Tennessee also offer their inhabitants a payment in exchange for living in some cities but not in the entire state as is the case in Alaska.
If you want to know more about this topic and how you can receive these payments, keep reading.
Permanent Fund Dividend (PFD)
If you are considering living in Alaska, you should know that annually the local government of this state pays most of its citizens an amount of money if they are residents and stay at least 180 days in a calendar year within the limits of the state.
In 1976 the government of Alaska created the Permanent Fund Dividend to administer dividends obtained from investment earnings from state mineral royalties. It wasn’t until 1980 that residents began receiving their dividends from the government.
Every year the amount varies depending on how the economy has been in the state, however, since 1988 the amount has been greater than $800. For example, in 2015 eligible citizens received approximately $2,000.
Since the amounts vary annually, it is not recommended that you include these payments as a part of your budget, although it can actually have a positive impact on your personal finances.
The calculations to estimate how much corresponds to each citizen are based on the number of applicants to the program during the dividend year and half of the average legal net income of the last 5 fiscal years.
Generally, citizens who receive these funds invest them in the formation of an emergency fund or save for a down payment on a home. This Permanent Fund Dividend also helps Alaskans offset the high cost of living they may face while living in this state.
This year (2021), residents could receive approximately $1,600 from state dividends.
How do I qualify for PFD?
Although every Alaskan may receive the payments from this program, in order to receive the money you must meet the eligibility requirements and apply.
The eligibility requirements are:
- Live in Alaska during the last year before your application. Thus, being an Alaska resident.
- Not having received benefits from another state or country from having claimed residency somewhere else.
- Intend to remain an Alaska resident indefinitely.
- Having been in Alaska for more than 180 days in the previous year or having an allowable absence.
- If you are a foreigner: a) have permanent residence in the United States, b) being a political asylee under federal law, or c) being a refugee under federal law.
- Not having been convicted or imprisoned for felony or misdemeanors during the previous year.
How do I apply for PFD?
This program is administered by the Alaska Department of Revenue through the Permanent Fund Dividend Division who is responsible for determining the eligibility of residents who submit their applications.
Each resident who claims their dividends must submit an individual application; even children must complete their applications. Parents have to complete the application on behalf of their children. For instance, a family of 4 (father, mother, and 2 children) must submit 4 applications during the filing period.
The enrollment period starts on January 1st until March 31st each year; once this period ends, the application process is closed without extra time. You may apply online, by Mail, or at PFD offices.
Online
You need to go to the PFD Alaska official page and click “Log in to myPFD.”
Then, you can complete the Applicant Details such as full name, Social Security Number, date of birth, and Drivers License. It is advisable that you also log in to your myAlaska account.
Then, you have to answer questions about your specific condition as a person who lives in Alaska, select “yes” or “no” depending on your last year living there. The questions are related to the eligibility criteria, like if you received dividends last year, if you’ve been in Alaska for almost 180 days, if you are under an allowable absence, or your immigration status. If you have children, you may complete their application after completing yours.
The next thing is to select whether you want the payment to be made by a direct deposit or through a 1099-MISC statement. Once you have completed your application, select “submit application.” Print the “congratulations” page which contains your confirmation number.
Another option for you to make your PFD application if you live in Alaska is by downloading the form (updated 2022), complete it, sign it, and then send it to the PFD offices in Anchorage, Fairbanks, or Juneau.
Anchorage mailing address
P.O. Box 110462
Juneau, AK 99811
Fairbanks mailing address
P.O. Box 110462
Juneau, AK 99811
Juneau mailing address
P.O. Box 110462
Juneau, AK 99811
PFD Offices
The last option is for you to go to the PDF offices and submit your application with them directly. They will give you a receipt once you’ve ended the process.
Anchorage mailing address
655 F Street
Anchorage, AK 99501
Fairbanks mailing address
510 2nd Ave. Suite 100
Fairbanks, AK 99701
Juneau mailing address
333 Willoughby Avenue
Juneau, AK 99811-0461