The Internal Revenue Service (IRS) has determined that payments from the Segal AmeriCorps Education Award and accrued interest payments made on behalf of a member are considered taxable income. CNCS does not withhold taxes from Education Award payments, which means you will have to pay taxes on any payments as income when you file your return. If you received payments that totaled at least $600 in the year, the National Service Trust will notify the IRS that payments have been made and you will receive a Form1099 for that tax year. If the Form1099 is applicable, you can print out a copy from the system by going to the "My Tax Forms" section of the website and clicking on the available 1099 form. Remember that taxes are due only in the year in which the payment is made, not the year the award is earned.
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