IRS and PFD Payments 2025: Check Eligibility & How to Apply

IRS and PFD Payments 2025, As we are heading towards March 2025, every citizen is wondering “Am I qualified for IRS and Alaska PFD payments? PFD referred to as Alaska Permanent Fund Dividend is a very important payment for American citizens. It is important to understand the IRS and PFD payments to secure these payments in 2025. 

Whether you are an American taxpayer or an Alaska resident who is looking to maximize tax credits and more opportunities. This article covers everything about Internal Revenue Services and Alaska Permanent Fund Dividend including Eligibility, Claim Process, and more. Additionally, this is a source of information for those who are eagerly waiting for IRS Tax Credit and PFD payments in 2025.  

Basic Overview of IRS Tax Credits

IRS Tax Credits are provided to eligible taxpayers to lessen the financial stress they have due to high expenses and low income. There are two major types of Tax credits provided in the USA by Internal Revenue Services: 

1. Earned Income Tax Credit (EITC)
2. Child Tax Credit (CTC)

Earned Income Tax Credits are offered to reduce the tax burden and give a tax break to low and medium-income employees and families. Child Tax Credit is provided to give a tax break to families who have qualifying children. Children must meet the qualification criteria defined by the IRS.

1. Earned Income Tax Credit (EITC)

The EITC is a refundable tax credit that was initiated to help medium-income and low-income employees and families. EITC Tax amount relies on AGI, Investment income, filing status, and qualifying children count.  

EITC Eligibility Requirements

• Adjusted Gross Income: For a single filer who is living with 3 or more qualifying children, the annual adjusted gross income limit must be lower than $59,899 and if any couple files jointly the maximum income is fixed at $66,819.
  
• Investment Income: To take the benefit of Earned Income Tax Credit your investment income must be equal to or less than $11,60 according to the tax year 2024.
  
• Social Security Numbers: To get the EITC Tax Credits you are required to have a valid Social Security Number that is issued on or before tax return the due date.
  
• Filing Status: To be eligible for the Earned Income Tax Credit you must follow one of the following tax filing statuses: Married filing jointly; Head of household, Qualifying surviving spouse, Single, or Married filing separately.

• Maximum credit amounts: Here is the maximum amount credit breakdown:

• For No qualifying children: $632
• For one qualifying child: $4,213
• For two qualifying children: $6,960
• For three or more qualifying children: $7,830

2. Child Tax Credit (CTC)

The Child Tax Credit provides tax refunds of up to $2000 based on the age of qualifying children and the number of qualifying children. Qualifying children of age less than 17 can get the amount of $2000 and over 17 can get the $1400 As CTC.

CTC Eligibility Requirements

• Qualifying children of age under 17 can receive the Child Tax Credit
• Americans who have resided with you at least for 6 months in the tax year.
• If you are filing according to 2024 CTC, your income must not be 2,00,00 annual and if you are filing jointly, income must not be more than 4,00,000 annual.
• Deadlines for submitting US Income Tax Return is April 15, 2025.

Understanding Alaska Permanent Fund Dividend (PFD)

Alaska PFD is a special type of annual tax refund program run by Alaska Residents and funded by the oil revenue of the state. This year, Alaska PFD $1700 payment is expected to be received by qualified individuals and recipients. 

Alaska PFD Eligibility Criteria

• It is a must to be an Alaska permanent resident to receive Alaska PFD in 2024 to receive the Alaska PFD.
• The applicant’s intent must be to live long in Alaska if they are claiming for 2025.
• Alaska PFD applicants must not be absent from the state for more than 180 days.

Alaska PFD Deadlines

• Application Start Date: 1st January 2025
• Application End Date: 31st March 2025

How to Apply For IRS Tax Credits: Step-by-Step Process

• Keep all the supporting documents ready before applying for EITC and CTC, for example: W2S, 1099S, SSN, and Form 1040, 1040 SR.
  
• Before start applying, it is needed to determine your eligibility for IRS Tax credits. For this, you can take the help of any tax consultant.
  
• File your tax return online from the IRS platform and you can track your status from the Where’s My Refund Tool or the IRS2Go Mobile app.

Steps to Apply for Alaska Permanent Fund Dividend?

If you are eligible for Alaska PFD and want to apply for it you can follow these simple steps:

Home Page

TMBU

• Visit the Alaska Permanent Fund Dividend Website to apply for Alaska PFD.
• Click on Apply for PFD and complete the application form.
• Submit the residency proofs and other documents.
• Submit the Alaska PFD form by clicking on Final Submit.
• To track your status you can visit MyPFD application.
• The final deadline to submit the  PFD Claim is 31st March 2025.