Alaska Permanent Fund Dividend

How do I enter that information and how do I do the kids taxes separately?

(Asked 02/03/07, Views 867)

For your Alaska Permanent Fund Dividend, you would enter that under Other Income. For your kids, according to the IRS on filing requirements for dependents: "If a child's ONLY income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends) and certain other conditions are met, a parent can elect to include the child's income on the parent's return. If this election is made, the child does not have to file a return." BUT the dividend and interest income must be less than $8,500. In order to do this on the parents' tax return, the IRS requires that you must "make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. (If you make this election, you cannot file Form 1040A or Form 1040EZ.) Attach a separate Form 8814 for each child for whom you make the election. You can make the election for one or more children and not for others.)

(Posted 02/04/07)

For your income, since you receive a 1099-Misc, in TurboTax, you need to go to Business Info -> Business Income and Expense, click on continue, then click on Specific Topics, scroll down and click on the Revisit or Start for the Other Form 1099-Misc Income. In box 3 - Other income, enter your amount as shown on your 1099-misc, click on continue, and select a radio button for Alaska Permanent Fund dividends distribution. The amount will flow to Form 1040, line 21, Other Income.

(Posted 02/08/07)