Tax Relief

Cassidy, Bennet, Bacon, and Larson introduce tax breaks for nationwide service volunteers

Senator Bill Cassidy

U.S. Senators Bill Cassidy, MD (R-LA) and Michael Bennet (D-CO), and MPs Don Bacon (R-NE-02) and John Larson (D-CT-01) presented the Segal AmeriCorps Education Award today Tax Relief Act. Currently, thousands of Americans are serving their country through national service facilities. In return for their services, they can claim the Segal AmeriCorps Education Award to help make higher education more affordable and accessible. Currently, these benefits are treated as taxable income and cannot be withheld to pay the resulting taxes. The Segal AmeriCorps Education Award Tax Relief Act would fix this by excluding the Education Award from gross taxable income.

“AmeriCorps members devote their time and talent to serving their communities and their country. Charging them with taxes that other Americans don’t pay is unfair, ”said Dr. Cassidy.

“AmeriCorps members make important contributions to our communities in Colorado and across the country and work countless hours in the service to improve the lives of our children and neighbors,” said Senator Bennet. “It is high time we recognized your commitment. By removing this unnecessary burden on AmeriCorps members, we can ensure that they receive the full award they deserve to help fund higher education. ”

“Many young Americans across the country serve their communities through national service opportunities, and although they are thanked with an education award, they are beaten for being treated as taxable income,” said Rep. Bacon. “This law will take this financial burden off these young executives who make a difference through their critical work.”

“Thousands of Americans selflessly serve our communities each year. In return for their services, they receive the Segal Education Award to make higher education more affordable. The Segal AmeriCorps Education Award Tax Relief Act will make this award more accessible by excluding it from gross taxable income. Currently, this award is treated as taxable income, which puts a financial burden on AmeriCorps alumni. As a nation, we should encourage more people to serve our country, not make it harder. I am honored to continue the late review. John Lewis’ work on the matter, and I am proud to share with Rep. Bacon today this bipartisan, sensible legislation, ”said Rep. Larson.

“The AmeriCorps Education Award tax creates an unexpected and unfair tax burden on the dedicated Americans who pledge to serve their country through AmeriCorps. It’s essentially a service tax, ”said AnnMaura Connolly, president of Voices for National Service. “We don’t tax Pell Grants or GI Bill Benefits, and we shouldn’t tax the Segal AmeriCorps Education Award. We are grateful to Senators Bennet and Cassidy, and MPs Larson and Bacon for leading the tax exemption effort for the award, and we urge their colleagues to support the bill. “

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