Government pay you to live in Alaska?? (Homer: student loans, how much)

[AmericanMuscleta]

What the title says, I heard that after being a citizen of Alaska for a year the government pays you to live there. Is that true or was the person who told me just a moron? Thanks

[rotorhead]

What you're probably referring to is the PFD...the Permanent Fund Dividend. Its true that Alaskans currently pay no state tax, though they have in the past and may someday in the future. In fact, the state has a huge kitty (billions) of cash tucked away from taxes on the oil shipped through the Alaska Pipeline. Every year they take some of the profits from that "permanent fund" and distribute it evenly to all bona-fide Alaskan residents. Most years its around $800-$900, though in the past its topped $1100. Depending on when you move there you might have to wait more than a year to get a distribution, the rules are fairly complex. If you leave the state for any significant length of time (more than a couple of months) you can't claim a dividend that year so that knocks out the snowbirds, even if they do own a house or land up in AK. All in all, its much better better deal than paying the state every year in addition to the feds, but you're talking about well less than $100 a month even in the good years. Hardly enough reason to incur the substantial costs of moving up to AK just for the dividend, and keep in mind that its not the cheapest place to live either.

[Rance]

But don't think you can move here and live off a PDF. It ain't happening. Not to mention you get into trouble with the law, poof...no more dividend. You owe fines. Your dividend pays off those fines. Student loans? Your dividend goes toward paying those off. Sure it's a nice little bonus once a year, if you get one, but the feds still tax you on it. To make a long story short...we "don't" get paid to live here. We live here because we love it, and we residents get a dividend to boot!

[Tressa]

Originally Posted by Rance

But don't think you can move here and live off a PDF. It ain't happening. Not to mention you get into trouble with the law, poof...no more dividend. You owe fines. Your dividend pays off those fines. Student loans? Your dividend goes toward paying those off. Sure it's a nice little bonus once a year, if you get one, but the feds still tax you on it. To make a long story short...we "don't" get paid to live here. We live here because we love it, and we residents get a dividend to boot!

DITTO - DITTO- DITTO.

[mal_flisk]

I'm still waiting for the gubment to pay me for living, period. I am such a god that people should pay for the privilege of my company.

"Oh Lord, it's hard to be humble, when you're perfect in every way
I can't wait to look in the mirror, 'cause I get better lookin' each day..."

[AmericanMuscleta]

Thank you all for the clear up. My buddy was telling me they pay you like $4-5,000! So he wasn't total bullcrapping me!

[Rance]

He was way off. We've never seen that amount. Ever. I'm sure we never will.

[Quadmonkey]

One of the guys I served with in the Navy grew up in Homer, and he told me about getting the money from the PFD, and I was like wha??? I mean I don't pay state income tax in Nevada either (they make enough off the gambling licenses and such,) but it still kinda amazed me until I thought about how much it really was. Maybe one extra fat paycheck per year for lower income, or nowhere near a paycheck for the higher income.
Sounds like a really silly reason to move there. When he told me how much he got, it was like 900ish bucks.
I wish I could give advice on all the states I have lived in, about their pros and cons, but during my time in the military I always kept Nevada as my home of record, so I was a Nevada resident the entire time.

[mal_flisk]

If you have a whole passel of kids, each of them gets the same as mom and pop. Problem is, you are responsible for how you spend their money. No instant 'Vette in the driveway. Most of the folks I know with kids bank it for college, or purchase a family gift (small boat or a good computer for the kids to use at school. There have been a couple of lawsuits against parents who blew their (and their kids' PFD's) on booze or drugs. More power to the kids, I say. My boys know where their PFD's are at.

[rotorhead]

Yeah, if you're smart it can be a good foundation for the best college plan EVER...and its one that can actually happen for the average family which is the best part.

Now as far as living on the PFD....thats an exercise in frugality that would test even the cheapest of cheapskates. I doubt that even the most successful hunter/trapper in the most austere cabin could live off $75/month these days. As long as you're accustomed to luxuries such as living indoors and eating on a regular basis, that gonna be a hard budget to stick to.