Alaska Permanent Fund Dividend: Is It Taxable?
Published November 6, 2026
If you received an Alaska Permanent Fund dividend, you need to know how it fits on your federal return. Publication 525 explains the rule. This guide is general information. It is not advice about your return.
It is taxable federal income
Publication 525 says that if you received an Alaska Permanent Fund dividend, you report it as income on Schedule 1 (Form 1040), line 8g. Schedule 1 is where you list other income that does not go directly on the front of Form 1040. Publication 525 describes the dividend as a payment from Alaska's mineral income fund.
The energy relief part is included
Publication 525 uses the 2024 dividend as its example. That payment included an energy relief payment as part of the total. Publication 525 says you do not reduce line 8g by the energy relief part. The whole dividend is taxable federal income.
The state document and the IRS copy
The State of Alaska sends each recipient a document that shows the amount of the payment. Publication 525 says the state sends it with the check. Publication 525 also says the amount is reported to the IRS. Keep the document with your tax records, so the amount on your return matches what the state sent.
Timing: when a check counts
Publication 525 says that, in most cases, an amount included in your income is taxable unless the law specifically exempts it. For cash-method taxpayers, a valid check you received, or that was made available to you before the end of the tax year, counts as income for that year. It counts even if you cash or deposit it the next year.
Why the amount should match
The IRS also receives a report of the amount. If the amount on your return does not match the state document, check which number is right before you file.
Other items in the same publication
Publication 525 covers many other kinds of income. Our guides to unemployment benefits, jury duty pay, and scholarships and fellowships explain the rules for those items.
If you filed a return and left out a dividend, see our guide to fixing a mistake on a filed return.
How it compares with gifts and inheritances
The dividend is a payment you receive from a state fund. It is not the same as a gift or an inheritance. Our guide to gifts and inheritances you receive explains the rules for those. For other income items, our guide to Schedule 1 additional income and adjustments covers the lines on that form.
Keep the state document, the record of the check or deposit, and a copy of your return with your tax records. The state document is the best record of the amount you received. If the amount looks wrong, contact the State of Alaska, which sends the document. Our guide to how long to keep tax records covers timing.
Quick check before you file
- Did you receive the state document with your payment?
- Does the amount match your records, including the energy relief part?
- Is the full amount on Schedule 1 (Form 1040), line 8g?
- Did you count the payment in the year the check was available to you?
Simple steps
- Find the document that the State of Alaska sent with your payment.
- Use the full dividend amount, including any energy relief part.
- Report it on Schedule 1 (Form 1040), line 8g.
- Keep the document with your records for the year.
Upload your documents and answer a few simple questions. Your preparer reviews every deduction and credit and lets you know when your return is ready to sign.
Sources: Sources: IRS, Publication 525 (2025), Taxable and Nontaxable Income (https://www.irs.gov/pub/irs-pdf/p525.pdf) This is general information, not advice about your specific return.
