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Sponsored by Representatives Kenny Hulshof (R-MO) and Bill Lipinski (D-IL),the "Education Savings and School Excellence Act" (HR 7) would reverse an Internal Revenue Service (IRS) ruling that makes both the scholarship and stipend of the National Health Scholarship Corps (NHSC) award and the F. Edward Hebert Armed Forces Health Professions Scholarship and Financial Assistance Program fully subject to taxation.
Until the IRS ruling, taxes were withheld only from the monthly stipend. This position runs in contradiction to the purpose of the programs, which is to provide incentives for health professionals to practice in our neediest communities. Enacted more than 20 years ago, the NHSC Scholarship Program provides medical students with scholarships to cover tuition and fees, as well as a stipend for living expenses. In exchange, NHSC scholars commit to serve after graduation in areas where it is difficult to recruit health professionals.
For some students receiving these scholarships, the income tax liability will exceed students' monthly stipends leaving them with no money for living expenses. By issuing this ruling, the IRS provides a disincentive for student participation in these programs at a time when there is a shortage of health care professionals in medically underserved areas.
Click here to contact your Representative before April 4 to help support HR-7.
Please feel free to discuss HR-7 below! Also, let us know if you have sent an email support for HR-7!
Until the IRS ruling, taxes were withheld only from the monthly stipend. This position runs in contradiction to the purpose of the programs, which is to provide incentives for health professionals to practice in our neediest communities. Enacted more than 20 years ago, the NHSC Scholarship Program provides medical students with scholarships to cover tuition and fees, as well as a stipend for living expenses. In exchange, NHSC scholars commit to serve after graduation in areas where it is difficult to recruit health professionals.
For some students receiving these scholarships, the income tax liability will exceed students' monthly stipends leaving them with no money for living expenses. By issuing this ruling, the IRS provides a disincentive for student participation in these programs at a time when there is a shortage of health care professionals in medically underserved areas.
Click here to contact your Representative before April 4 to help support HR-7.
Please feel free to discuss HR-7 below! Also, let us know if you have sent an email support for HR-7!
