Get Your Share of Alaska’s Oil Wealth: The Annual Permanent Fund Dividend

If you’re an Alaska resident, you’re eligible for something most Americans can only dream about: an annual check from the state government, no strings attached. The Alaska Permanent Fund Dividend (PFD) is the state’s way of sharing its oil wealth with everyone who calls Alaska home. In 2023, that meant $1,312 per person. For a family of four, that’s over $5,000 showing up in October—real money that can help with everything from winter heating costs to building savings.

This isn’t a loan you have to repay, and it’s not welfare with income limits. It’s a dividend from a brilliantly managed state investment fund built on oil revenues. If you were a resident of Alaska for the entire prior calendar year and you meet the physical presence requirements, you’re entitled to your share. The catch? You need to apply during the narrow application window each year, and the residency rules are stricter than you might think.

The amount changes every year based on investment returns from the Permanent Fund, which holds over $77 billion in assets. Some years the dividend has been over $2,000 per person; other years it’s been lower. The state calculates each year’s payout using a formula tied to the fund’s five-year average performance, smoothing out market volatility. That means you can’t predict exactly what you’ll get, but you can count on receiving something substantial if you’re eligible.

Understanding Alaska’s Unique Dividend Program

The Alaska Permanent Fund was created in 1976 when voters approved a constitutional amendment to set aside at least 25% of all mineral lease revenues for long-term investment. The idea was simple but brilliant: Alaska’s oil wealth won’t last forever, so save part of it for future generations instead of spending it all now. The fund invests in stocks, bonds, real estate, and other assets worldwide. Dividends to residents began in 1982, and they’ve been paid every year since.

This is different from any other state benefit program in the country. It’s not based on need, age, disability, or any other qualifying characteristic except residency. Everyone from newborns to centenarians gets the same amount. The program treats the Permanent Fund as belonging to all Alaskans collectively, with each resident entitled to an equal share of the earnings.

At a Glance: Key Details

Who Qualifies for the Dividend

The eligibility rules are straightforward in concept but tricky in execution. You must have been an Alaska resident for the entire prior calendar year, which means if you’re applying in 2026 for the 2026 dividend, you needed to be a resident for all of 2025. Moving to Alaska in July won’t make you eligible until the dividend paid two years later.

Residency means more than just living in Alaska physically. You need to demonstrate that Alaska is your primary home and that you intend to remain an Alaskan indefinitely. The state looks at where you vote, where your driver’s license is issued, where you file taxes, and other factors. If you keep a home in another state and spend summers in Alaska, you probably don’t qualify even if you’re physically present enough days.

Physical presence matters too. You must be physically in Alaska for at least 72 consecutive hours during the qualifying year. This isn’t hard for actual residents, but it trips up people who try to maintain Alaska residency while living elsewhere most of the year. If you’re absent from Alaska for more than 180 days during the qualifying year, you’re generally disqualified unless your absence qualifies for an exception.

Allowable absence exceptions exist for specific situations including active military service, medical treatment, full-time education, accompanying a qualifying family member, or serving as a missionary. If you’re gone for exactly 181 days on vacation or working out of state without a qualifying reason, you’re not eligible. But if you were deployed with the military for 300 days, that absence is allowed and won’t disqualify you.

Criminal convictions can disqualify you. If you were convicted of a felony during the qualifying year or incarcerated for a misdemeanor for more than 180 days, you’re not eligible for that year’s dividend. This is a “per year” determination—a conviction disqualifies you for the year it occurred, not necessarily forever.

Children and dependents qualify independently. Parents or guardians apply on behalf of minor children, but each child has their own eligibility based on their own residency and presence. A baby born in Alaska in December qualifies for a partial dividend if they meet the presence requirement for the part of the year they were alive.

How to Apply: Step-by-Step Process

Alaska has made applying remarkably easy with a fully online system, though paper applications are still accepted for those who prefer them. Here’s exactly what you need to do.

Step 1: Gather Your Information (Early January)

Before the application window opens on January 1, collect the documentation you’ll need. This includes your Social Security number, Alaska driver’s license or state ID number, dates of any absences from Alaska during the prior year, and the reason for each absence. If you’re applying for children, you’ll need their information too. Don’t wait until March 30 to realize you’re missing key details.

Step 2: Apply Online (January 1 - March 31)

Log into the PFD online application system at MyPFD.alaska.gov. First-time applicants need to create an account, which requires email verification. Returning applicants can log in with their existing credentials. The system will pre-fill some information from your prior applications, but review everything carefully—if your circumstances changed, you need to update accordingly.

Work through each section methodically. The system asks about your residency status, physical presence in Alaska, any absences and their purposes, and whether any disqualifying convictions occurred. Be thorough and honest about absences. Trying to hide a three-week vacation to Hawaii might seem harmless, but if you’re selected for a audit and can’t document your presence, you could be required to repay the dividend with interest.

For each absence over 30 days, you’ll need to provide specific dates and detailed reasons. “Business trip” is too vague; “employed by XYZ Company on project in Anchorage with weekly travel to Seattle office, absent May 1-14, June 3-10, July 8-21” is what you need. Keep records like boarding passes, hotel receipts, or employer documentation in case of audit.

Step 3: Choose Your Payment Method

Direct deposit is faster, more secure, and arrives a day or two before paper checks. You’ll enter your bank account and routing numbers in the application. The state uses this for payment only—they won’t withdraw money from your account. If you don’t want to provide bank information, you’ll receive a paper check mailed to your address on file.

Step 4: Submit Before the Deadline

The March 31 deadline is firm. The system stays open until 11:59 PM Alaska time on March 31, but don’t wait until the last day. Thousands of people procrastinate, the system can get slow, and if you discover a problem at 11:55 PM, you’re out of luck. Submit by mid-March, confirm you received a submission confirmation email, and sleep easy.

Step 5: Respond to Any Follow-Up Requests

After you apply, the PFD Division may request additional documentation or clarification. If they send you a letter or email requesting information, respond quickly. Missing a follow-up deadline can result in denial of your application even if you were eligible.

Insider Tips for a Successful Application

People who’ve been collecting the PFD for decades have learned a few things that can help you navigate the process smoothly.

Document everything, especially absences. If you travel outside Alaska regularly, keep a calendar marking every date you leave and return. Save boarding passes, hotel confirmations, and work travel documentation. You might not need it, but if you’re selected for an audit (they randomly audit about 2-3% of applications), having contemporaneous records is a lifesaver. Trying to reconstruct your travel a year later from memory is nearly impossible.

Understand what counts as “allowable absence.” Military service obviously qualifies, but did you know that attending your child’s out-of-state wedding is an allowable absence as “accompanying a family member”? Or that if you’re receiving full-time medical treatment unavailable in Alaska, those days don’t count against you? Read the detailed absence rules carefully—you might qualify for exemptions you didn’t realize existed.

Apply early in the window. Submitting in January means you’ll get any clarification requests with plenty of time to respond. People who wait until March often face time pressure if the Division needs additional information. Early applicants also don’t risk technical problems from high traffic on the website as the deadline approaches.

If you’re new to Alaska, wait for full eligibility. Some people move to Alaska in, say, June and then apply that year thinking six months is enough. It’s not. You must have been a resident for the entire prior calendar year. If you moved to Alaska in June 2025, the first dividend you might be eligible for is the one paid in October 2027 (for qualifying year 2026). Don’t waste time applying early—you’ll just get denied.

Parents, apply for your kids. Many families forget that every child qualifies for their own dividend. A family of four with two kids can receive over $5,000 some years. The process for minors is identical to adults, just filed by the parent or guardian on the child’s behalf. Don’t leave money on the table.

Common Mistakes That Lead to Denial

Every year, thousands of applications get denied for preventable reasons. Avoid these pitfalls.

Undercounting or failing to report absences. If you say you were in Alaska all year but your absence actually totaled 200 days, you’ll be denied when they audit your records. The PFD Division can cross-check with airline databases, employment records, and other sources. Honesty is non-negotiable.

Claiming residency while maintaining ties elsewhere. You can’t keep your voting registration in Texas, your driver’s license in Oregon, and your primary home in California while claiming to be an Alaska resident just because you work there part of the year. Alaska must be your principal home, and you must intend to stay indefinitely. If you’re planning to move back “home” in a few years, you’re probably not truly an Alaska resident for PFD purposes.

Missing the application deadline. There’s no late submission. March 31 means March 31. If you miss it, you simply don’t get that year’s dividend. The state doesn’t care if you forgot, or were sick, or didn’t know—the deadline is published widely and applies to everyone.

Not updating address and contact information. If the PFD Division sends you a request for clarification to the wrong address because you moved and didn’t update your information, and you don’t respond, you’ll be denied. Check that your contact information is current before applying each year.

Assuming prior approval means automatic future approval. Each year is evaluated independently. Getting the dividend last year doesn’t guarantee you’ll get it this year if your circumstances changed. If you moved away for eight months or got convicted of a felony, you need to report that truthfully even though it means denial.

What to Expect After You Apply

Once you submit your application, the PFD Division begins processing. For straightforward applications with no red flags, you won’t hear anything until the dividend is paid in October. If they need clarification or have questions, they’ll contact you by mail or email (depending on your communication preferences).

Around August or September, the state announces the official dividend amount for the year. This depends on investment returns, legislative appropriations, and the statutory formula. Some years the amount is lower than expected due to poor market performance or legislative changes to the calculation formula.

Payments go out in early October, typically October 5 or 6. Direct deposit recipients see the money first, usually a day or two before paper checks arrive in the mail. If you haven’t received your payment by October 15, check the PFD website or call their office—there may be an issue with your application that needs resolution.

Using Your Dividend Wisely

$1,312 (or whatever the annual amount is) might not sound life-changing, but for many Alaskans it’s a significant financial event. Some families plan their year around the October payment, using it for property taxes, heating costs through the winter, or holiday expenses.

Financial advisors in Alaska often suggest treating the dividend as “bonus” money rather than counting on it for regular expenses. Since the amount varies year to year, building it into your budget as essential income can create problems in years when the dividend is smaller than expected. Better to use it for savings, debt paydown, or one-time purchases.

For families with children, consider setting aside the kids’ dividends in education savings accounts or long-term investments. A child born in Alaska who receives the dividend every year from birth through age 18, with the money invested in a college fund, could accumulate $40,000 to $60,000 or more depending on investment returns. That’s a substantial head start on higher education costs.

The Dividend and Your Taxes

The PFD is considered income for federal tax purposes, so you’ll receive a 1099-MISC form in January and need to report it on your federal return. However, Alaska has no state income tax, so you won’t owe state tax on the dividend.

For most people, the federal tax impact is modest. If you’re in the 22% federal tax bracket, you’ll owe about $288 in federal tax on a $1,312 dividend, leaving you with about $1,024 in net benefit. Still worth having.

If you receive need-based federal benefits like SNAP or Medicaid, be aware that the PFD counts as income in the month you receive it, which could affect your benefit eligibility for that month in some cases. Check with the agency administering your benefits if you’re concerned.

Frequently Asked Questions

Can I file if I’m living in a remote area without internet? Yes, paper applications are available. Contact the PFD Division at 907-465-2326 to request one be mailed to you. The deadline is still March 31 (postmark date).

What if my spouse and I are separated but still legally married? Each of you files your own application based on your individual residency and presence. Marriage status doesn’t affect individual eligibility.

I’m in the military and stationed outside Alaska. Do I still qualify? Yes, if Alaska was your permanent home of record when you entered service and you intend to return. Military absences are allowable absences that don’t count against the 180-day limit.

Can I get back-years’ dividends if I didn’t apply before? No. You must apply during the application year for each year’s dividend. Missing a year means forfeiting that dividend; you can’t go back and apply for prior years.

What if I’m denied? You can request an informal review by contacting the PFD Division within 60 days of the denial notice. If that doesn’t resolve it, you can request a formal hearing before an administrative law judge.

Do I need to reapply every year? Yes. The PFD doesn’t automatically renew. You must submit a new application each year during the January 1 through March 31 window.

Does the dividend affect my eligibility for federal student aid? Yes, it’s counted as income on the FAFSA. However, since it’s a once-a-year payment and the amounts are typically modest, the impact is usually minor.

How to Apply Now

Ready to claim your dividend? Here’s what to do next.

First, confirm you meet the eligibility requirements. If you weren’t an Alaska resident for the entire prior calendar year, wait until you qualify. Applying before you’re eligible wastes your time and the state’s resources.

Second, mark your calendar for January 1 through March 31 as the application window. Set a reminder for mid-January to actually complete the application, giving yourself plenty of cushion before the deadline.

Third, create your MyPFD account if you don’t have one already. Even though applications don’t open until January, you can set up your account anytime at MyPFD.alaska.gov. This way you’re ready to go when the window opens.

Finally, visit the official PFD website for complete current information, application links, and answers to specific questions about your situation: https://pfd.alaska.gov/Eligibility

Questions about your individual circumstances? Contact the Permanent Fund Dividend Division directly:

• Phone: 907-465-2326
• Fax: 907-465-3470
• Mail: State of Alaska Department of Revenue, Permanent Fund Dividend Division, P.O. Box 110462, Juneau, AK 99811-0462

The Alaska Permanent Fund Dividend is one of the most generous state benefits in America. If you’re an Alaska resident, don’t miss out on your share of the state’s oil wealth—just make sure you understand the rules and apply correctly during the brief window each year.