26 U.S.C. § 912 : US Code - Section 912: Exemption for certain allowances

Search 26 U.S.C. § 912 : US Code - Section 912: Exemption for certain allowances

The following items shall not be included in gross income, and
shall be exempt from taxation under this subtitle:
(1) Foreign areas allowances
In the case of civilian officers and employees of the
Government of the United States, amounts received as allowances
or otherwise (but not amounts received as post differentials)
under -
(A) chapter 9 of title I of the Foreign Service Act of 1980,
(B) section 4 of the Central Intelligence Agency Act of 1949,
as amended (50 U.S.C., sec. 403e),
(C) title II of the Overseas Differentials and Allowances
Act, or
(D) subsection (e) or (f) of the first section of the
Administrative Expenses Act of 1946, as amended, or section 22
of such Act.
(2) Cost-of-living allowances
In the case of civilian officers or employees of the Government
of the United States stationed outside the continental United
States (other than Alaska), amounts (other than amounts received
under title II of the Overseas Differentials and Allowances Act)
received as cost-of-living allowances in accordance with
regulations approved by the President (or in the case of judicial
officers or employees of the United States, in accordance with
rules similar to such regulations).
(3) Peace Corps allowances
In the case of an individual who is a volunteer or volunteer
leader within the meaning of the Peace Corps Act and members of
his family, amounts received as allowances under section 5 or 6
of the Peace Corps Act other than amounts received as -
(A) termination payments under section 5(c) or section 6(1)
of such Act,
(B) leave allowances,
(C) if such individual is a volunteer leader training in the
United States, allowances to members of his family, and
(D) such portion of living allowances as the President may
determine under the Peace Corps Act as constituting basic
compensation.