Please urge Congress to pass a law that would eliminate federal taxation of the Segal Americorps Education Award. The Segal AmeriCorps Education Award should be a valuable and compelling incentive for young people to serve their country in a non-military capacity. Now is the time for Congress to act and make this award tax-free.
Currently, AmeriCorps members can use their Education Award $5,550 to pay educational expenses at qualified institutions of higher education, finance educational and vocational training and/or repay qualified student loans.
The award has been viewed differently than most other forms of scholarships and fellowships and is subject to federal taxation. This proposition is to end the federal tax on a scholarship that is currently currently taxed as cash income.