This is a followup question to a previously submitted question concerning the taxability of Americorps income reported on a W-2. You responded that it is taxable. I have a similar situation and notice that no social security or medicare tax was withheld. Does this also need to paid?

This is a followup question to a previously submitted question concerning the taxability of Americorps income reported on a W-2. You responded that it is taxable.”--->Correct; AmeriCorps volunteers serve receiving a modest annual living allowance are subject to state and federal income tax withholding and FICA (social security and Medicare) taxes. AmeriCorps Education Award, unlike most other forms of NON-taxable scholarships and fellowships, is subject to federal tax in the year the payment is made When and how much of the education award you redeem may have an impact on your overall income tax responsibility.
“ I have a similar situation and notice that no social security or medicare tax was withheld. Does this also need to paid?”-->Yes; a modest annual living allowance that she receives on a monthly basis is subject to FICA (Social Security and Medicare)Taxes. They are withheld from the end-of-service stipend on W2 and submitted to the IRS at the time the stipend is paid.

I finally got an answer directly from an AmeriCorps representative on this question. This is their response as I understand it. NO social security or medicare tax is due on the monthly stipends that are paid as the stipends are considered as living allowances and are not subject to these taxes. Federal and State Income taxes are required on the stipend payments. If there is a cash incentive paid at the end of the contract, that payment is subject to social security and medicare taxes as that payment is not considered as part of the living allowance. The end of contract cash incentive is also subject to income taxes.

"If there is a cash incentive paid at the end of the contract, that payment is subject to social security and medicare taxes as that payment is not considered as part of the living allowance."---> Thanks alot.