How Much Do Members Pay?

Former members often report paying $500 in additional taxes after spending a full award. Since people have different tax scenarios, this is not a set amount. Some pay more, others less. Sometimes, you will still receive a refund, but it is reduced by the amount of tax paid on the award.

You can calculate your education award tax with an online tax service (Many of them are free until you file, and others are always free). At any time of year, you can plug in your estimated tax numbers and note the amount of your refund or what you owe. Then add the amount of your award you're planning to withdraw. By doing this, you can see the difference the education award is making on your tax bill.

HIDDEN TAX DANGER! Members who move on from service and start a job in the $30-40,000 a year range risk bumping themselves into a higher tax bracket when using their education award(s). To help avoid this from happening to you, check out the national service tax strategies.


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