Washington, DC – With Honor Action is proud to endorse the AmeriCorps Education Award tax Relief Act, a bill led by Senators Bill Cassidy and Michael Bennet. A House companion is being led by Reps. Don Bacon and John Larson. The bill would ensure that AmeriCorps education scholarships are not federally taxable. For far too long, these scholarships have been counted as federally taxable income, despite the fact that they are service related awards given directly to colleges and universities for the sole use of paying tuition.
Every AmeriCorps member who completes a term of service is awarded the Segal AmeriCorps Education Award. This scholarship is equal to the maximum amount of a Pell Grant, and is placed in a trust to be used for future educational benefits or student loans. Other service related scholarships, such as Pell Grants, GI Bill benefits, and National Health Service Corps scholarships are not federally taxed. The idea has already been placed into effect in multiple states, such as Oregon, Minnesota, Wisconsin, Nebraska and Iowa, all excluding AmeriCorps education awards from state income tax eligibility.
“Those who participate in national service dedicate their lives to the United States of America,” said Rye Barcott, Co-Founder and CEO of With Honor Action. “The AmeriCorps Education Award Tax Relief Act would make sure that all who serve our country are entitled to educational benefits without having to worry about the burden of unforeseen tax costs. Currently, only AmeriCorps members have their education benefits taxed. This is a bipartisan, common-sense piece of legislation that needs to pass.”
The AmeriCorps Education Award Tax Relief Act would level the playing field for AmeriCorps service members, ensuring they have access to similar educational benefits as others who have served our country. With Honor Action applauds Senators Cassidy and Bennet for re-introducing this bipartisan bill, and urges Congress to pass it in honor of the AmeriCorps service members who work to make this country a better place every day.
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With Honor Action fights polarization in Congress by supporting principled veterans across party lines who pledge to service with integrity, civility, and courage. With Honor Action works alongside the bipartisan For Country Caucus in Congress to pass critical legislation for our nation. Learn more about our work at WithHonor.org
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