Is the AmeriCorps educational award taxable?
• Both interest payments and payments from educational award accounts have been determined to be taxable income. They are included as income in the tax year the payment is mailed to the school or loan company. • The Trust will report to the IRS the total of all payments that were made on a member’s behalf. An IRS form 1099 (Misc Income) will be mailed to the member in January following each year in which at least $600 worth of payments were made on the member’s behalf. This form will let the member know the total amount of his/her payments from the previous year. • The member’s tax burden may be mitigated somewhat by federal income tax laws regarding educational credits and deductions for student loan interest payment. IRS Publication 970, Tax Benefits for Education, explains these credits and deductions in detail. The member should contact the IRS or his/her tax advisors for additional information. • You should refer all tax questions to your tax professional. Please do not call the T
