Question: My child has joined AmeriCorps and has received an income statement. Are these payments taxable?

Answer:

Yes. AmeriCorps Education Awards and living allowances are taxable in the year they are paid. If you receive an award, you should receive a Form 1099-MISC, Miscellaneous Income.  The 1099-MISC will show your award dollar amount in box-3 Other Income, with no withholding.  Report these amounts on line 21 for Other Income on the Form 1040.

Want more information about filing requirements and tax credits? Call us at (630) 448-2066 or visit http://www.smalltax.com, or http://www.premcpa.com or http://www.premtbs.com  for more information.

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