Page 25 - Wages, Salaries and Other Earnings

 Most payments received by U.S. Government
civilian employees for working abroad are
taxable.
 However, certain cost-of-living allowances
are tax free. Pub. 516, U.S. Government
Civilian Employees Stationed Abroad,
explains the tax treatment of allowances,
differentials, and other special pay you
receive for employment abroad.

2

Government cost-of-living allowances