Using Your Ed Award
After successfully completing your AmeriCorps term of service, you are eligible to receive the Segal AmeriCorps Education Award. You can use the award to repay qualified student loans and to pay current educational expenses at eligible institutions of higher education and training programs.
You can access the award in full or in part until the total amount is used, or until the award expires. The award expires seven years from the date it is earned.
For more information, go to
www.nationalservice.gov/programs/americorps/alumni/segal-americorps-education-award/use-your-education-award
Tax Implications
Payments made using the Segal AmeriCorps Education Award are subject to federal tax in the year each payment is made. It is considered taxable income regardless of whether it is used to pay current educational costs or to repay qualified student loans.
Payments made for interest accrued during the term of service are also subject to income taxes in the year the payment is made. Interest payments are made on your behalf for the interest that accrued during your service term. These payments are made in addition to your education award and are not subtracted from your award balance.
Any amount of the education award used and any interest payments made, may impact your annual income tax responsibility.
The Trust DOES NOT withhold taxes from your education award or interest payments. If your education award and interest payments total more than $600 in a calendar year, CNCS will send you an IRS Form 1099 to be used in preparing your income tax return. All education award and interest payments made on your behalf are considered taxable, even if they do not total $600. You can review all of your payments under Account Statements on your My AmeriCorps account.
For more information, go to
www.nationalservice.gov/programs/americorps/alumni-resources/segal-americorps-education-award/tax-implications
After successfully completing your AmeriCorps term of service, you are eligible to receive the Segal AmeriCorps Education Award. You can use the award to repay qualified student loans and to pay current educational expenses at eligible institutions of higher education and training programs.
You can access the award in full or in part until the total amount is used, or until the award expires. The award expires seven years from the date it is earned.
For more information, go to
www.nationalservice.gov/programs/americorps/alumni/segal-americorps-education-award/use-your-education-award
Tax Implications
Payments made using the Segal AmeriCorps Education Award are subject to federal tax in the year each payment is made. It is considered taxable income regardless of whether it is used to pay current educational costs or to repay qualified student loans.
Payments made for interest accrued during the term of service are also subject to income taxes in the year the payment is made. Interest payments are made on your behalf for the interest that accrued during your service term. These payments are made in addition to your education award and are not subtracted from your award balance.
Any amount of the education award used and any interest payments made, may impact your annual income tax responsibility.
- If you use the entire amount of your education award in one calendar year, you must include the entire amount as income on your taxes for that year.
- If you redeem only a portion of your education award in a calendar year, you are responsible for any taxes owed on that portion.
- If you do not use any of your award in a particular year, you do not include any part as income.
- All interest payments made on your behalf should be included as income in the year the payment was made.
The Trust DOES NOT withhold taxes from your education award or interest payments. If your education award and interest payments total more than $600 in a calendar year, CNCS will send you an IRS Form 1099 to be used in preparing your income tax return. All education award and interest payments made on your behalf are considered taxable, even if they do not total $600. You can review all of your payments under Account Statements on your My AmeriCorps account.
For more information, go to
www.nationalservice.gov/programs/americorps/alumni-resources/segal-americorps-education-award/tax-implications