Page 80 - Wages, Salaries and Other Earnings

Volunteers

 The tax treatment of amounts you receive as a volunteer
worker for the Peace Corps or similar agency is covered in
the following discussions.
 Peace Corps. Living allowances you receive as a Peace
Corps volunteer or volunteer leader for housing, utilities,
household supplies, food, and clothing are generally
exempt from tax.

 Taxable allowances.
 The following allowances, however, must be
included in your income and reported as wages.
 • Allowances paid to your spouse and minor
children while you’re a volunteer leader training in
the United States.
 • Living allowances designated by the Director of
the Peace Corps as basic compensation. These are
allowances for personal items such as domestic

help, laundry and clothing maintenance,
entertainment and recreation, transportation, and
other miscellaneous expenses.
 • Leave allowances.
 • Readjustment allowances or termination
payments. These are considered received by you
when credited to your account.

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