Process for Paying Taxes

In January following the year you use all or part of your award, you will receive a 1099-Misc form in the mail. You can also download this from your My AmeriCorps account. This is an income-reporting form that you use when filling out your taxes.

IMPORTANT POINT: Unlike other types of employment income, you are NOT able to withhold a sum from your education award and use it to pay taxes.

If I use $600 or less from my award, do I pay taxes?
If you use $600 or less, a 1099 form will not be created for you. However, according to the IRS, you are still obligated to report any amount withdrawn from your Trust account as income on your taxes. Even if it's just $5.

What if I made a mistake and paid too much in taxes?
There have been cases in which members have reported their award as income in a year BEFORE they actually used it and paid taxes twice. If this happens to you, you can amend your tax return and get a refund. This has to happen within three years of overpaying the taxes. Learn more at the IRS website.


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