Alaska residents will get stimulus payment of $1,702 – know full details!
Alaska residents are set to receive a stimulus amount of $1,702 this year. This payment will be given under the Alaska Permanent Fund Dividend (PFD). This payment, to be released on March 20, 2025, will provide financial assistance to people in the tax season and they will be able to manage their expenses better.
What is a stimulus payment?
The purpose of stimulus payment is to provide economic relief to the people and strengthen the economy by promoting consumer spending. This payment is issued under different schemes by either the federal government or the state government.
During the Kovid-19 pandemic in the US, the government distributed the stimulus amount in the form of Economic Impact Payments. But this payment of Alaska is part of a different scheme, which is designed to share the income from the natural resources of the state with the citizens.
What is the Alaska Permanent Fund Dividend (PFD)?
The Alaska Permanent Fund Dividend (PFD) was started in the 1970s. The purpose of this scheme is to distribute the revenue earned from the state’s oil and mineral resources among the citizens. Since then, eligible residents have been receiving payments under this scheme every year.
The PFD payment for 2025 is set at $1,702, which will be deposited into the accounts of eligible residents on March 20, 2025.
PFD Payment Process
Alaska has a total population of about 600,000, which is much less than other states. Because of this, the citizens here get more comprehensive benefits than other states.
Other government schemes often give priority to low-income people, but PFD payments are available to all eligible residents without any income limit.
Eligibility Conditions for PFD
To receive the 2025 PFD payment, residents must meet the following conditions:
- Must be a resident of Alaska.
- Have been living in Alaska for the past 12 months and have no plans to leave the state.
- If a person has been temporarily out of state, he or she must have spent at least 72 consecutive hours in Alaska in the past 24 months.
- Have not been in prison for a felony in the past 12 months.
- If previously convicted of a felony or twice convicted of a minor misdemeanor, must not have committed a new crime in the past 12 months.
Applications for the 2025 PFD payment were open between January and March. Those who applied on time and met the eligibility criteria will receive the amount in March 2025.
Other benefits of living in Alaska
Apart from PFD payments, Alaska residents also get many other economic benefits, such as:
- There is no state sales tax.
- Energy subsidy is available, which helps reduce heating costs in cold weather.
- There is no state tax on retirement income. (Alaska is one of the 9 states where this facility is offered.)
However, living in Alaska can be expensive as it is a remote state and job opportunities are limited there. But PFD payments and other government benefits help provide relief to the citizens there.
Frequently Asked Questions (FAQs)
When will you get a PFD payment?
Eligible residents will receive a payment of $1,702 on March 20, 2025.
Who is eligible for PFD payments?
People who have lived in Alaska for the past 12 months and meet other eligibility conditions.
Are PFD payments based on income?
No, this payment is paid to all eligible residents without any income limits.
What are the other benefits of living in Alaska?
No sales tax, energy subsidies, and no state tax on retirement income.
Why does Alaska pay PFD payments?
So that the income from the state’s oil and mineral resources can be shared with the citizens.
Conclusion
The Alaska Permanent Fund Dividend (PFD) not only provides economic relief to the citizens of the state, but it also lets them share in the profits from the state’s natural resources. This payment of $1,702 will be distributed in March 2025, enabling Alaskans to meet their financial goals and cope with rising inflation.