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Making AmeriCorps Education Awards Tax-Free for National Service Participants.

This bill exempts the Segal AmeriCorps Education Award, granted for national service, from federal income tax. This change means individuals using these funds for education or student loan repayment will no longer face tax liability on the award amount. This provides a direct financial benefit to AmeriCorps participants, increasing the effective value of their compensation.
Key points
Segal AmeriCorps Education Awards (received for national service) will no longer be counted as taxable gross income.
Individuals using AmeriCorps awards to pay off student debt will not be taxed on the discharged amount, providing significant financial relief.
The amendments apply to taxable years ending after the date the Act is signed into law.
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Additional Information
Segal AmeriCorps Education Award Tax Relief Act of 2023
Print number: S 3487
Sponsor: Sen. Bennet, Michael F. [D-CO]
Process start date: 2023-12-13