Americorps Member

August 2013

AmeriCorps Member

Dear Member,

As an AmeriCorps National Service participant, you have made an important and admirable decision to serve your community. Through AmeriCorps*USA, a program administered by the Commission for National and Community Service, you have joined a family of more than 200,000 people nationwide who, like you, have made a commitment to one of many National Service programs including AmeriCorps*VISTA and AmeriCorps*NCCC. In return for your service, you receive a living allowance and, upon successful completion of 1,700 hours (35 – 40 hours per week), an educational award that you can use to pursue college, graduate school, or vocational training. This letter will serve to provide more information about your service commitment.

AmeriCorps Members are not employees; rather, they are National Service participants who fall into a special category under the Internal Revenue Code that is neither "employee" nor "contracted service provider." Nevertheless, the Internal Revenue Service does consider the living allowance to be income and, therefore, taxable. National and Community Service Trust Act, 26 U.S.C. 61.

The National and Community Service Act specifies that your living allowance be treated just like income received by JTPA participants. {142 (b) of the Job Training Partnership Act, 29 U.S.C. 1552 (b). This means that the AmeriCorps living allowance will not affect your eligibility for most needs-based federal programs, including Food Stamps and Section 8 housing. Other benefits that are not affected by the AmeriCorps living allowance include WIC, job training, Pell grants, and VA benefits. However, the living allowance does count as earned income for programs funded under the Social Security Act, including AFDC (now TANF), SSI, and Medicaid. It is important to note that Members will not automatically lose their AFDC/TANF benefits. That will depend upon the state's eligibility threshold.

In addition to a living allowance, AmeriCorps programs must provide health care coverage to full-time AmeriCorps Members like you, even if they are eligible for Medicaid. Because Medicaid "wraps around" other available health coverage, Medicaid will only pick up costs that are not covered under the AmeriCorps policy. Members who remain on AFDC/TANF will continue to receive Medicaid for their dependents. Members who lose AFDC/TANF due to the living allowance can usually continue to receive extended Medicaid coverage for their dependents for up to one year.

AmeriCorps Member

August 2013

Page 2

Your service began in the fall of 2013. Your service will end in the fall of 2014. You will receive $12,100 throughout your term of service. After successfully completing your term of service you will receive and educational award in the amount of $5,550.00.

I hope this information is helpful. You should feel free to contact our office with any additional questions about the AmeriCorps living allowance or health care benefits. Please contact Betsy Southall 340-3519. Thank You.

Sincerely,

Betsy Southall

LifeBridge AmeriCorps Director