Energy-relief share of last year's PFD not subject to income tax
February 16, 2023
The IRS announced last Friday that most temporary relief checks issued by states in 2022 are not subject to federal income taxes, including the $662 energy-relief portion of last year’s $3,284 Alaska Permanent Fund dividend.
Alaska legislators last year added the energy-relief money to the annual PFD of $2,622 in a move to help residents hit hard by high prices for gasoline, diesel and heating fuel.
The IRS decision provides last-minute tax guidance as returns are starting to pour in.
The agency said it will not challenge the taxability of payments related to general welfare and disaster,...