Individual Income Tax Forms
No individual income tax
Corporate Income Tax Forms
Form 611X Amended Corporation Net Income Tax Return
Sales Tax Forms
No sales tax
Alaska Tax Forms: A Complete Guide to Filing Your Taxes
The Alaskan state government relies on taxes to fund the state’s operation and infrastructure. Failing to file and pay your taxes accurately, could incur penalties and fines by the state government. Therefore, it is essential for all Alaskan residents to file their taxes on time and accurately.
In this article, we will go through all the essential information you need to know about Alaskan tax forms, the latest tax legislation updates and changes important for Alaskans to address while filing their taxes.
What are Alaska Tax Forms?
Alaskan tax forms help residents report their state taxes to the state government. The forms are available for download on the Alaskan government website- Tax Division. Alaskan residents who earn income from sources such as employment, self-employment, or rental property, are required to file an Alaska tax return.
There are various tax forms for Alaskan residents, depending on the individual’s source(s) of income. The most common forms used by Alaskans are:
– Form 500 for Alaskan Individual Income Tax Return
– Form 690 for Limited Income Credit
– Form 600 for Alaska Partnership Information Return
– Form 641 for S-Corporation Information Return
– Form 649 for Corporation Income Tax Return
Alaskan Tax Return Filing Deadlines
If you are an Alaskan resident filing your tax return, you must file and pay your taxes by the deadline. The federal deadline to file tax returns is usually April 15th of each year, but Alaskan residents have until April 30th to file their state taxes.
Alaskan residents can apply for an automatic extension of six months by filling out Form 630, but this extension doesn’t extend the payment deadline. If you are unable to pay your taxes, contact the State of Alaska Department of Revenue immediately to discuss available payment options.
An Overview of Alaskan Tax Forms
Form 500: Alaskan Individual Income Tax Return
The primary tax form for Alaskan residents is Form 500. This form is used to report all income received during the tax year. The form includes information such as wages, salaries, tips, and all other sources of income. It also includes deductions and tax credits if applicable.
The state of Alaska displays a table of tax rates on their website – Alaska Tax Division. It indicates the income ranges applicable to different tax rates. The tax rates range from 0.5% (for income upto $20,000) to 7.00% (for incomes above $250,000). For married couples filing jointly, the tax rates are applicable based on the combined income of the couple.
Form 690: Alaska Limited Income Credit
The Alaska Limited Income Credit is a benefit provided for low-income taxpayers residing in the state of Alaska. The eligibility for this credit is determined based on individual income. Taxpayers with incomes below the threshold set by the Alaskan government are qualified to receive benefits from this credit.
The Alaskan government provides a table displaying the threshold values based on family sizes. The credit ranges between $50 to $1000, depending on the individual’s tax bracket and family size. The credit is refundable, which means, if the credit amount exceeds the tax owed, the remainder is returned to the taxpayer.
Form 600: Alaska Partnership Information Return
Individuals who run a partnership in Alaska, are required to file Form 600. This form reports the partnership’s income, deductions, tax credits and distributions to partners. The Alaskan government imposes a minimum tax of $100 on partnerships. Partnerships earning less than $40,000 annually are eligible for a tax credit of $100.
Form 641: Alaska S-Corporation Information Return
S-Corporations in Alaska are required to file Form 641. S-Corporations are taxed similarly to partnerships in Alaska. The form includes details regarding the company’s revenue, expenses, deductions and credits. Like partnerships, S-Corporations are also required to pay a minimum tax of $100.
Form 649: Alaska Corporate Income Tax Return
Corporations conducting business in Alaska are required to file Form 649. The form reports information such as the company’s revenue, expenses, deductions and credits. The Alaskan government imposes a flat rate tax rate of 8.84% on Corporate income in Alaska.
Recent Legislation Updates Impacting Alaskan Taxes
The State of Alaska had immense changes concerning taxes in recent years. Some significant changes impacting individuals and businesses in Alaska are discussed below.
Oil and Gas Production Tax (HB 111)
In 2017, Governor Bill Walker signed House Bill 111 that restructured the oil and gas tax system in Alaska. The bill increased the minimum tax rate on oil and gas profits from net profits of under $30/barrel to 35% of the value of resources produced. It also reduced tax credits on existing oil wells, including ‘well lease expenditure credits’ and ‘exploration credits.’
Inheritance Tax/Marijuana Tax (HB 111)
House Bill 111 also modified the tax structure for inheritance tax and introduced Alaska’s first-ever tax on marijuana. The bill removed the state’s estate tax after 2019, but during that period, the tax credit doubled from $5 million to $11.2 million per estate. Marijuana that is legal in the state is subject to a tax of $50 per ounce at a wholesale level.
Minimum Wage Increase (SB 3)
In 2020, Alaska enacted Senate Bill 3 to increase the minimum wage in the state. The minimum wage increased from $9.89 per hour to $10.19 per hour beginning January 1st, 2021. This wage increase would continue until 2022.
Final Thoughts
Understanding how to file your Alaska taxes accurately is incredibly important for all residents. Alaskan residents must file their taxes on time and ensure they report all their incomes and deductions accurately to avoid any fines and penalties. Keep in mind that there are tax credits available for those who qualify.
The Alaskan government’s Tax Division is a valuable resource for all questions related to Alaska tax forms and compliance. It is recommended to utilize this resource to stay up-to-date on tax changes and take advantage of available resources to simplify the process.
