Employees posted to exceptionally dangerous posts may receive additional danger pay of up to 25% of base pay. Additional amounts of up to 10%, 20%, or 30% above the family at a foreign post where government-leased or -owned housing is not Tel: (202) 647-3573 | housing@aafsw.org. However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. Foreign Service Clause Foreign Service Officers accrue annual leave based upon their years of service, as follows: Sick Leave may be granted when an employee is unable to perform his or her duties due to sickness, injury, or pregnancy. Costs relating to the purchase of property or the employ of domestic servants do not qualify for the exclusion. If the officer does not ship the full 18,000 pounds to post, the government will pay for the storage of the effects that are not sent to post up to a total of 18,000 pounds. Coordinator for the Arctic Region, Bureaus and Offices Reporting Directly to the Secretary, Office of the Coordinator for Cyber Issues, Office of the U.S. "Instructions for Form 2555 (2019)." Sick leave may also be utilized to obtain medical, dental, oroptical care. For more information, refer to U.S. Foreign Service Employees. As quarters overseas in many cases are not as large as those i the U.S., continuing … Most payments received by US Government civilian employees for working abroad, including pay differentials, are taxable. Foreign Service employees and family members can review the Foreign Service Assignment Notebook: What Do I Do Now? If your expenses are more than the allowance you receive, you can no longer deduct the excess expenses as an itemized deduction. The U.S. government provides many allowances to ease the financial difficulties associated with frequent moves around the world. Advances of pay are interest-free, and are repaid through payroll deductions over a period of several months. This section addresses the issue of time away from the job. Please see. The foreign housing exclusion or deduction is computed in parts VI, VIII, and IX of Form 2555. Often, these accommodations are furnished.  Qualifying expenses may also include payments intended to equalize taxes and education expenses for the taxpayer's children or dependents. Foreign Service Officers assigned to Washington, D.C., are responsible for locating and paying for their own accommodations. This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). The limit on housing expenses varies depending upon the location in which you incur housing expenses. The limit on housing expenses is computed using the worksheet on page 3 of the instructions for Form 2555.. In addition to providing paid home leave, the U.S. Government also will pay for travel of the officer and his or her family to the officer's home in the United States. Foreign & Commonwealth Office. Most Foreign Service Officers spend approximately 60% of their careers overseas. These earnings are not eligible for the foreign earned income and housing exclusions or the foreign housing deduction. Additionally, foreign housing expenses may not exceed your total foreign earned income for the taxable year. Living Quarters Allowance (LQA): This allowance is granted to an employee to help defray the annual cost of suitable, adequate living quarters for the employee and his/her family at a foreign post where government-leased or -owned housing is not provided. Also, foreign housing expenses may not exceed the individual’s total foreign foreign earned income for the taxable year. This file may not be suitable for users of assistive technology. for Employee to process LQA claim, *To view Reporting Schedule select Allowances The United States government pays the travel expenses incurred by Foreign Service Officers and their dependents when traveling to overseas assignments. As a general rule, Foreign Service Officers are entitled to a combined shipping and storage allowance of 18,000 pounds net. The Department of State currently observes the following Federal holidays: New Year's DayMartin Luther King's Birthday President's Day Memorial Day Independence Day Labor Day Columbus DayVeteran's DayThanksgiving DayChristmas Day. The amount is 16 percent of the maximum exclusion amount, which computed daily, multiplied by the number of days in the qualifying period that fall within the individual’s tax year., Housing expenses include reasonable expenses actually paid or incurred for housing in a foreign country for the individual, their spouse and their dependents, provided they lived abroad as well.