IRS exempts tax on energy relief portion of 2022 PFD
Energy Relief Payment worth $662 will be tax exempt
ANCHORAGE, Alaska (KTUU) - Part of the 2022 Permanent Fund Dividend check will not need to be included in Alaska residents’ taxes, according to the Internal Revenue Service.
The IRS issued a statement Feb. 10 clarifying details on special payments made by 21 states last year, including Alaska’s annual PFD checks.
The agency said Alaska’s Energy Relief Payment, worth $662.19, will be tax-exempt and does not need to be included on tax forms. The 2022 PFD paid out a total of $3,284 to all eligible Alaskan residents in late September, with $2,621.81 of that being part of the actual Permanent Fund formula.
“During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief,” the agency noted in an online release.
The Energy Relief Payment was included with the PFD check last year as part of Gov. Mike Dunleavy’s push to help alleviate the burden of high energy costs and inflation for Alaskans.
On Friday, the IRS issued an updated bulletin in response to Alaskan residents who have already filed their tax return with the $662.19 amount included, saying that they should discuss their next steps with a tax professional. The agency added that it may also issue further guidance about the issue.
“This is an evolving issue, and the Alaska Department of Revenue’s Permanent Fund Dividend Division will continue working with the Alaska Department of Law and the IRS to determine if it needs to take any further action based on this new guidance,” the release said.
Copyright 2023 KTUU. All rights reserved.