IRS Refunds May Land on Same Day as PFD Payments in June 2025: What Taxpayers Should Know

The IRS has announced that federal tax refunds — averaging $3,034 this year — may coincide with Permanent Fund Dividend (PFD) disbursements in June 2025. This overlapping payout schedule could provide a meaningful financial boost for taxpayers in eligible states, particularly Alaska, where residents receive PFD payments as part of a state-run dividend program.

Here’s what this means for taxpayers and how to prepare.

What Is the PFD?

The Permanent Fund Dividend is an annual payment issued to eligible Alaska residents. It represents a share of the state's oil revenue investment earnings and is typically disbursed in mid-to-late summer.

2024 PFD Payout

• 2024 PFD payout: $1,312 per eligible resident

  
  

Projections for 2025

• 2025 projections: Not yet finalized, but expected in the same range

  
  

Eligibility Requirements

• Eligibility: Must be a resident of Alaska for the full calendar year, with no disqualifying absences or criminal convictions.

  
  

IRS Refunds: Status Update

As of May 2025, the IRS has issued millions of federal tax refunds, with the average payment clocking in at $3,034.

Processing Timeline

• Most refunds are processed within 21 days of e-filing.

• Paper returns continue to face delays.

• The IRS advises checking the “Where’s My Refund?” tool for status updates.

  
  

The agency has hinted that a large wave of refunds is expected to hit bank accounts and debit cards around the second and third weeks of June — coinciding with Alaska’s expected PFD disbursement window.

Why This Matters

For taxpayers — especially in Alaska — receiving both a federal refund and a state dividend on the same day can significantly improve short-term cash flow.

Financial Impact

• Combined payouts could exceed $4,000 per person.

• Families of four may see over $16,000 in total deposits.

• This can help offset rising costs of living, pay down debt, or replenish emergency savings.

  
  

Tips for Taxpayers Expecting Both Payments

Taxpayers can take several steps to prepare for the arrival of their payments.

Verify Direct Deposit Information

• Double-check direct deposit details for both the IRS and Alaska's PFD program.

  
  

File Remaining Tax Returns

• File any remaining returns or documentation ASAP to avoid missing the refund cycle.

  
  

Monitor Payment Status

• Use the IRS refund tracker and PFD status tool to monitor timing.

  
  

Create a Budget Plan

• Plan ahead — consider budgeting in advance if large payments are expected.

  
  

What Tax Professionals Should Watch

Tax preparers working with Alaskan clients—or clients in other states expecting large lump-sum payments (e.g., state refunds, tax credits)—should remain vigilant.

Address Client Concerns

• Prepare for client questions around timing, offsets, and taxability.

  
  

Clarify Tax Implications

• Clarify that federal refunds are not taxable, but PFD payments may be at the federal level.

  
  

Advise on Financial Management

• Advise clients on how to responsibly allocate lump-sum windfalls to avoid overspending.

  
  

Final Thought

The possible overlap between IRS refunds and PFD payouts is a rare moment of financial uplift in an uncertain economy. For tax professionals and financial advisors, it's also a prime opportunity to help clients make smarter choices with their money.

Bizora AI will continue monitoring IRS refund cycles and state-level disbursements to keep tax pros ahead of what matters.

Summary

In summary, this year, the potential simultaneous receipt of federal tax refunds and PFD payments provides an essential financial boost for many Alaskans. It is crucial for both taxpayers and tax professionals to prepare adequately for these payments and understand their implications.

This financial uplift can be beneficial for those looking to ease their financial pressures. Remember, taking proactive steps can make a significant difference in how these payments affect your personal finances.