AmeriCorps VISTA is authorized under the Domestic Volunteer Service Act (DVSA) of 1973. Payments made to volunteers under DVSA are exempt. Therefore, AmeriCorps VISTA payments are exempt.
AmeriCorps State/National programs are funded under the National and Community Service Act of 1990 and are not necessarily exempt. Treatment of these payments is determined by the type of payment:
* Living allowance payments are nonexempt earned income.
* Clothing allowance payments are nonexempt earned income.
* Educational awards paid directly to the educational institution are exempt.
Exempt earnings from AmeriCorps VISTA and nonexempt earnings from AmeriCorps State/National programs may keep a month from counting against the client's TANF 60-month limit. Record the hours and exempt or nonexempt earnings of an adult, because this may stop the TANF counter (see PM 03-06-03-a).