Introduction
Picture this: you’re living in Alaska, the northernmost state in the US. It’s winter and the temperature outside is a numbing negative degrees Fahrenheit. You have to wear multiple layers of clothing just to go outside and your skin cracks and bleeds from the cold. Now imagine that you don’t have to live like this. That you could get free money every month, just for being alive. It may sound too good to be true, but it’s not. This person is living in Alaska and getting free money forever.
What is the Permanent Fund Dividend?
The Permanent Fund Dividend is an annual payment made to eligible Alaskans from the state's Permanent Fund. The dividend is calculated using a five-year average of the Permanent Fund's earnings, and is paid out each year on October 1.
To be eligible for the dividend, you must have lived in Alaska for at least one full calendar year, and you must have been a resident of Alaska for at least the past three months. You must also not be claimed as a dependent on another person's tax return.
The amount of the dividend varies each year, but it is typically between $900 and $1,200. In recent years, it has averaged around $1,000 per person.
If you are eligible for the dividend and you move out of Alaska, you can still receive it as long as you maintain your Alaska residency (for example, by keeping your driver's license and voter registration in Alaska).
How to Qualify for the Permanent Fund Dividend
To qualify for the Permanent Fund Dividend (PFD), you must have lived in Alaska for a full calendar year, and you must have been physically present in the state for at least 180 days during that year. There are a few other requirements, but those are the two main ones.
If you meet those criteria, then you should file a PFD application when they become available each year. You can either do this online or by mail. Once your application is processed, you will receive your PFD in the form of a check or direct deposit.
It’s important to note that the PFD is not considered income, so it will not affect your taxes. Also, if you leave Alaska, you are still eligible to receive the PFD for any years that you qualified prior to leaving.
How Much Money Can You Get from the Permanent Fund Dividend?
Assuming you are a single person with no children, in 2018 you would have received $1,600 from the Permanent Fund Dividend. The amount of the dividend changes every year, and is based on the average earnings of the fund over a five-year period.
To be eligible for the dividend, you must have lived in Alaska for at least one calendar year, and cannot have been absent from the state for more than 180 days in that year. You must also intend to make Alaska your permanent home.
The money comes from the Permanent Fund, which was created in 1976 to manage revenue generated by oil drilling in Alaska. The fund is currently worth approximately $65 billion.
What Are the Disadvantages of the Permanent Fund Dividend?
The disadvantages of the permanent fund dividend are that it is not guaranteed and can fluctuate based on the stock market, it is subject to state taxes, and it may encourage people to move to Alaska for the purpose of receiving the dividend.
Conclusion
Although it may seem too good to be true, there is actually a place in the world where you can get free money just for living there. Alaska has been paying its residents an annual "dividend" from the state's oil and gas revenues for nearly 40 years, and it doesn't look like they're going to stop anytime soon. So if you're looking for a change of scenery and want to get paid to live in one of the most beautiful places on earth, Alaska might just be the place for you. Click Here