Is it true that you can get paid for living in Alaska? Yes – As long as you meet the eligibility requirements for Alaska’s Permanent Fund Dividend (PFD). Payments are issued starting in June each year to every Alaska resident who qualifies.
If you’re moving to Alaska and want to learn more, we’ll show you exactly how it works.Payouts in the last 10 years have ranged from$878to$2,072, so it’s well worth your time to understandwhether you’reeligible and how to register for your dividend.
Curious where the money is coming from?First, we’lltakeyou through some quick history on the Alaska Permanent Fund.
What Isthe Alaska Permanent Fund?
In the spring of 1968, oil wasdiscovered on Alaska’s North Slopein Prudhoe Bay. By 1976, the state’s residents voted to pass a constitutionalamendmentthat establishedthe Permanent Fund.The fund was designed toconvert the state’s oil and mineralresourcesinto a renewable financial resource forfuturegenerations.
The fund’s first depositin 1977 totaled $734,000–or about$3,350,728whenadjusted for inflation.Over the last 40+ years, theAlaska Permanent Fund Corporationhasinvestedthe Permanent Fundacrossa number ofasset classes in both private and public markets.As of April 2021, the value of the fund sits at $77,847,300,000.
Today,the Permanent Fundplays two roles. In addition to issuing annual dividends to eligible Alaska residents, it alsosupportsAlaska’sstate services and programs.Now that you understand where your payout is coming from, let’sinvestigatewhether or notyou’re entitled to a PFDpayoutthis year.
Who’s Eligiblefor the PFD?
As fun as “getting paid to live in Alaska” sounds, it’s not assimple as crossing the borderand collectingyour payout.Instead, you’ll have to 1) determinewhether or notyou’re eligible, then 2) apply to receive your check or direct deposit.Here’s how it works:
To qualify for the Permanent Fund Dividend, you must:
- Have been a resident of Alaska for the entire previous calendar year and intend to remain an Alaska resident indefinitely,at leaston the date you apply.
- Have not claimed residency in any other state,country or received any benefit as a result.If you were applying for the 2021PFD payout, this must be true back to December 31, 2019.
- You also must be physically present in Alaska for at least 72 consecutive hours at some time during the previous two years.
- If you were absent from Alaska for more than 180 daysin the previous calendar year, it must be for anallowable absence.
- You also must not have been sentencedorincarceratedas part of a felony convictionin theprevious year. Or have been incarcerated duringthe previous yearon a misdemeanor conviction ifyou’ve beenconvicted of a prior felony ortwo or more prior misdemeanors since January 1, 1997.
Whew! Got all that? Check out the Eligibility Requirements for more details.It might seem complex at first. However, for new residents, the most important requirement is the first one:Youhave tobe a resident of Alaska for a full calendar year before you’re eligiblefor the PFD.Once you’ve clearedallthese hurdles, applying for your PFD ispretty simple.
How to Apply for your PFD
Applications for the PFD are accepted from January 1–March 31. You can either apply online on thePermanent Fund Dividend Division website. Paper applications are also availableat Distribution Centers statewide.
A couple of pointers:
- PFD payouts are processed in the order they’re received.The sooner you get your application in, the sooner it will be processed.
- Each eligible person needs to fill out an application.Children need their own. So, if you’re married with two kids, you’ll need to submit four applicationstotal.
- As a parent, file your application first. Then,you can file and sign your child’s PFD application.
Finally, if you start getting antsy and wonder where your check or deposit is, you can alsomonitor your PFD application status online.
How Much Is thePFDPayout?
Onceyou’ve put in your application, you might wonder howmuchmoney you can expect. It varies each year, buttake a lookat this chart to get a sense of the payouts from the last ten years:
As you can see, although the range is broad, the PFD amount hasn’t dipped below $878in recent times.All that’s left is for you to figure out how to spend it.
How Do Alaskans Spend Their PFD?
You’ll finda whole spectrum of thinking around how to spend that PFD payout.Here are a couple of ideas to get you thinking:
- Use the money tosurvive the Alaskan winter. Stockpileessentials, like heating oil,purchase a new furnace,or buy a new set of winter tires.
- Invest in your home, either by making improvements orpurchasing a new appliance.
- Stockpile a little for a rainy day by putting some of your payout in an emergency fund.
- Pay downcredit card debt.
- Buy a plane ticket to see your familyor friendsin the lower 48.
- Put your children’s payments into a college fund.
- UsePick.Click.Givetodonate a portion of your payout toa non-profitthat supports acause that you care about.
Finally, make sure you set aside a little for taxes.Although Alaska doesn’t have a personal income tax, your PFD is subject to federal income tax.
The Perks of Moving to Alaska
There are all kinds ofreasons to move to Alaska. There’s no question; the PFD is one of them.However, there’s moreto living in Alaskathan a yearly check. Once you make the move to the Frontier State, you’ll have the opportunity to live in and around some of the most incredible, untouched wilderness that the United States has to offer. You’ll meet someunforgettablepeopleand you’ll go on some remarkable adventures. It’s all waiting for you in Alaska.
Need some help making the move to Alaska?We’d be happy to help you make a safe, easy, and affordable transition to the Land of the Midnight Sun. Whether you’re moving to Anchorage or a remote location deep in the bush, we’ve got the experience and the expertise to make it happen. Get started with acomplimentary quote for your relocation.
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