How to Save Money on Taxes
As we switch out our heaviest parkas for lighter ones, we begin tax prep for the year. Taking care of early filing of your taxes, Alaska PFD and residential exemptions is a great way to start out the new year!
Alaska PFD Eligibility
Newcomers to Alaska may be wondering "what is PFD?" It is a pleasant surprise that after living here for a full calendar year, you are eligible to claim a dividend of investment earnings of oil revenues. Make sure to register by March 31st at the Permanent Fund Dividend Division website. This site can answer all your most pressing questions about PFD eligibility and requirements, the amount you’re owed, and even family members’ eligibility.
Anchorage Property Appraisal Residential Exemption
Home ownership offers many rewards, and the Municipality of Anchorage adds another perk - Residential Property Appraisal Exemption. Owner occupied residential properties may be partially exempt from property taxation (10% of assessed value, up to $20,000 maximum). The form is a one-pager, really straightforward and due March 15th - put it on the checklist! Note: If you qualified for one in the prior year, and there have been no changes, you wont need to resubmit the application. Other types of exemption include:
- Business Property
- Nonprofit Exemption
- Military service widow or widower
- Disabled veteran
Do People Pay Taxes In Alaska?
Alaska is the only state that does not collect sales tax or income tax on earned or unearned income. You will still need to file with the IRS, however! If you follow our smart tips, create a checklist and file early, you will be in a great position for the coming year. You may even get a little boost help when it comes to shopping for your fresh spring gear!
IRS Tax-Prep Tips
Time is Money. To save money on taxes, start by saving time. Get super organized by creating a checklist, using these additional tips.
- File early to take advantage of any refunds coming your way
- Know your deadlines (like March 31 for the Alaska PFD, and April 15 for taxes)
- Use a professional tax preparer to eliminate guesswork
- Double -- and triple! -- check your math and all answers
- Helping those in need helps you, too. Being generous via charitable gifts -- such as to food banks and pantries -- helps your community and you, too. The Internal Revenue Service offers a useful list of additional ways to lower your taxable income, including:
- Contribute to your SEP and IRA accounts, or open one for the first time
- Offset gains by selling losing investments
- Adjust your withholdings via the tax form you filed with your employer
- Bunch your expenses, such as medical expenditures
Be in Touch!
Looking to buy your first home? Thinking about relocating? The Calling Alaska Home team can help!