You've received more than 300 hours of training, you've learned a lot, and we hope you had some fun along the way. The amount of the prize is equivalent to the Pell Grant. The value of an educational award received is three times greater than the amount of the award received ÷ the amount of a full-time award in the fiscal year in which the position in the national service was approved. Any amount of the educational grant used and any interest payments made during a tax year may affect your annual income tax liability.
The law considers that most federally backed post-secondary loans are eligible to be repaid with a Segal AmeriCorps Education Award. A notification will be sent to your loan holder to verify that you participated in AmeriCorps and earned an educational award. Each period of service for which an individual earns an education award counts as a period of service when calculating term limitations. The changes include increasing the amount of the award by linking its value to the maximum value of the Pell Grant, expanding the available uses and authorizing the transferability of the award to certain individuals.
IRS Publication 970, Tax Benefits for Education, explains the tax benefits that may be available to taxpayers who pay higher educational costs or repay student loans. The Trust can only make interest payments after you have successfully completed a period of service and obtained an educational award. The Serve America Act allows the transfer of educational awards earned by a member who successfully completes a term of service in state and national AmeriCorps programs, under specific conditions. You can use the prize to pay money owed to SU, receive credit at a bookstore, or get reimbursed for an education-related expense (you'll give Diane a receipt).
These include both education scholarship payments and interest payments accrued while the person was serving. AmeriCorps VISTA members who choose to receive the education award are not eligible for this cancellation. After you submit your application, the status of your educational grant will be “Pending Institutional Action.” The maximum amount of a full-time education award is equivalent to the maximum amount of the Pell Grant for the year in which the national service position was approved. You can ask the sponsor of your program or project for the amount of the educational award for the position in which you are serving.
Individuals can serve up to four terms, but they only receive the education award for successfully completing the first two quarters. Although you are responsible for paying taxes on your education grant and other AmeriCorps benefits, you may be entitled to other tax breaks through the Taxpayer Assistance Act of 1997.
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