United States Code (Last Updated: May 24, 2014) |
Title 26. INTERNAL REVENUE CODE |
SubTitle A. Income Taxes |
Chapter 1. NORMAL TAXES AND SURTAXES |
SubChapter N. Tax Based on Income From Sources Within or Without the United States |
Part III. INCOME FROM SOURCES WITHOUT THE UNITED STATES |
SubPart B. Earned Income of Citizens or Residents of United States |
§ 912. Exemption for certain allowances
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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.
References In Text
The Foreign Service Act of 1980, referred to in par. (1)(A), is Pub. L. 96–465,
The Central Intelligence Agency Act of 1949, referred to in par. (1)(B), is act June 20, 1949, ch. 227, 63 Stat. 208, which was formerly classified generally to section 403a et seq. of Title 50, War and National Defense, prior to editorial reclassification in Title 50, and is now classified generally to chapter 46 (§ 3501 et seq.) of Title 50. Section 4 of the Act is now classified to section 3505 of Title 50. For complete classification of this Act to the Code, see Tables.
Title II of the Overseas Differentials and Allowances Act, referred to in pars. (1)(C) and (2), was title II of Pub. L. 86–707,
Sections 1(e) and (f) and 22 of the Administrative Expenses Act of 1946, referred to in par. (1)(D), were repealed and the provisions thereof reenacted as sections 5726(b), 5727(b) to (e), and 5913 of Title 5, by Pub. L. 89–554,
The Peace Corps Act, referred to in par. (3), is Pub. L. 87–293,
Amendments
1988—Par. (2). Pub. L. 100–647 inserted “(or in the case of judicial officers or employees of the United States, in accordance with rules similar to such regulations)” after “President”.
1980—Par. (1)(A). Pub. L. 96–465 substituted reference to chapter 9 of title I of the Foreign Service Act of 1980 for reference to title IX of the Foreign Service Act of 1946.
1961—Par. (3). Pub. L. 87–293 added par. (3).
1960—Pub. L. 86–707 exempted foreign areas allowances received under section 4 of the Central Intelligence Agency Act of 1949, title II of the Overseas Differentials and Allowances Act, subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, or section 22 of such Act, provided that amounts received as post differentials shall not be exempt and in provisions relating to cost-of-living allowances excluded Alaska from term “continental United States” and amounts received under title II of the Overseas Differentials and Allowances Act.
Effective Date Of Amendment
Pub. L. 100–647, title VI, § 6137(b),
Amendment by Pub. L. 96–465 effective
Pub. L. 87–293, title II, § 201(d),
[Section 201(d) of Pub. L. 87–293 was repealed by Pub. L. 89–572, § 5(a),
Pub. L. 86–707, title V, § 523(b),
Repeals
Section 201(a) of Pub. L. 87–293, cited as a credit to this section, was repealed by Pub. L. 89–572, § 5(a),
Delegation Of Functions
Function of determining the portion of living allowances constituting basic compensation for Peace Corps volunteers or volunteer leaders under par. (3) of this section delegated by President to Director of Peace Corps to be performed in consultation with the Secretary of the Treasury, see section 1–104 of Ex. Ord. No. 12137,
Authority of President under par. (2) of this section delegated to Secretary of Defense with respect to military departments, and to Secretary of Transportation with respect to Coast Guard when it is not operating as a service in the Navy, concerning civilian employees of nonappropriated fund instrumentalities of the armed forces, see section 201 of Ex. Ord. No. 11137,
Miscellaneous
Pub. L. 99–514, title XII, § 1232(b),