Contents

Reminders ................... 1

Introduction .................. 2

U.S. Tax Return ................ 2

Filing Information ............. 2

U.S. Government Payments ...... 3

Allowances, Differentials, and 

Special Pay .............. 3

Deductions and Credits — 

Business Expenses ......... 4

Deductions and Credits — 

Nonbusiness Expenses ....... 6

Local (Foreign) Tax Return ......... 7

How To Get Tax Help ............ 7

Index ...................... 9

Future Developments

For the latest information about developments 

related to Pub. 516, such as treaties effective 

after it was published, go to IRS.gov/Pub516.

What’s New

No miscellaneous itemized deductions allowed. You can no longer claim any miscellaneous itemized deductions, including the deduction for unreimbursed job expenses. 

Miscellaneous itemized deductions are those 

deductions that would have been subject to the 

2%-of-adjusted-gross-income limitation.

Unreimbursed employee expenses. Only 

Armed Forces reservists, qualified performing 

artists, fee-basis state or local government officials, and employees with impairment-related 

work expenses can deduct certain expenses 

such as travel expenses, and other expenses 

connected to your employment. Due to the suspension of miscellaneous itemized deductions 

subject to the 2% floor under section 67(a), employees who do not fit into one of the listed categories cannot deduct employee business expenses. See the categories listed under Other 

Employee Business Expenses.

Moving expense deduction suspended, except for certain Armed Forces members. 

Beginning in 2018, as part of a provision contained in the Tax Cuts and Jobs Act of 2017, 

the moving expense deduction for tax years after 2017, and before January 1, 2026, is temporarily suspended, except if you are a member of 

the Armed Forces on active duty and, due to a 

military order, you move because of a permanent change of station.

Reminders

Combat zone participants. If you were a civilian who served in a combat zone or qualified 

hazardous duty area in support of the U.S. 

Armed Forces, you can get certain extensions 

Department 

of the 

Treasury

Internal 

Revenue 

Service

Publication 516

(Rev. November 2018)

Cat. No. 15020M

U.S. Government 

Civilian 

Employees 

Stationed 

Abroad

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Dec 20, 2018
of deadlines for filing tax returns, paying taxes, 

filing claims for refund, and doing certain other 

tax-related acts. For details, see Pub. 3, Armed 

Forces’ Tax Guide.

Death due to terrorist or military action.

U.S. income taxes are forgiven for a U.S. Government civilian employee who dies as a result 

of wounds or injuries incurred while employed 

by the U.S. Government. The wounds or injuries must have been caused by terrorist or military action directed against the United States or 

its allies. The taxes are forgiven for the deceased employee’s tax years beginning with 

the year immediately before the year in which 

the wounds or injury occurred and ending with 

the year of death.

If the deceased government employee and 

the employee’s spouse filed a joint return, only 

the decedent’s part of the joint tax liability is forgiven.

For additional details, see Pub. 559, Survivors, Executors, and Administrators.

Form 8938. If you have or had foreign financial 

assets, you may have to file Form 8938 with 

your return. See Foreign Bank Accounts, later.

Introduction

If you are a U.S. citizen working for the U.S. 

Government, including the foreign service, and 

you are stationed abroad, your income tax filing 

requirements are generally the same as those 

for citizens and residents living in the United 

States. You are taxed on your worldwide income, even though you live and work abroad.

However, you may receive certain allowances and have certain expenses that you generally do not have while living in the United 

States. This publication explains:

• Many of the allowances, reimbursements, 

and property sales you are likely to have, 

and whether you must report them as income on your tax return, and

• Many of the expenses you are likely to 

have, such as moving expenses and foreign taxes, and whether you can deduct 

them on your tax return.

U.S. possessions. This publication does not 

cover the rules that apply if you are stationed in 

American Samoa, Guam, the Commonwealth of 

the Northern Mariana Islands, the Virgin Islands, or Puerto Rico. That information is in 

Pub. 570, Tax Guide for Individuals With Income From U.S. Possessions.

Comments and suggestions. We welcome 

your comments about this publication and your 

suggestions for future editions.

You can send us comments through 

IRS.gov/FormComments. Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

Although we can’t respond individually to 

each comment received, we do appreciate your 

feedback and will consider your comments as 

we revise our tax forms, instructions, and publications.

Ordering forms and publications. Visit 

IRS.gov/FormsPubs to download forms and 

publications. Otherwise, you can go to IRS.gov/

OrderForms to order current and prior-year 

forms and instructions. Your order should arrive 

within 10 business days.

Tax questions. If you have a tax question 

not answered by this publication, check 

IRS.gov and How To Get Tax Help at the end of 

this publication.

Useful Items

You may want to see:

Publication

Armed Forces’ Tax Guide

Tax Guide for U.S. Citizens and 

Resident Aliens Abroad

Travel, Gift, and Car Expenses

Tax Withholding and Estimated Tax

Foreign Tax Credit for Individuals

U.S. Tax Guide for Aliens

Moving Expenses

Selling Your Home

Form (and Instructions)

cdu(Form 1040) Itemized 

Deductions

U.S. Individual Income Tax Return

Foreign Tax Credit

Application for Automatic Extension 

of Time To File U.S. Individual 

Income Tax Return

Treaty-Based Return Position 

Disclosure Under Section 6114 or 

7701(b)

Statement of Specified Foreign 

Financial Assets

oReport of Foreign 

Bank and Financial Accounts (FBAR)

U.S. Tax Return

Filing Information

If you are a U.S. citizen or green card holder living or traveling outside the United States, you 

are generally required to file income tax returns 

in the same way as those residing in the United 

States. However, the special rules explained in 

the following discussions may apply to you. See 

also Tax Treaty Benefits, later.

When To File and Pay

Most individual tax returns cover a calendar 

year, January through December. The regular 

due date for these tax returns is April 15 of the 

following year. If April 15 falls on a Saturday, 

Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. If you get an extension, you are 

 3

 54 

 463 

 505

 514 

 519

 521 

 523 

 Schedule A

 1040

 1116

 4868

 8833

 8938

 FinCEN Form 114

allowed additional time to file and, in some circumstances, pay your tax. You must pay interest on any tax not paid by the regular due date.

Your return is considered filed on time if it is 

mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight 

of the last date prescribed for filing. See your 

tax form instructions for a list of private delivery 

services that have been designated by the IRS 

to meet this “timely mailing as timely filing/

paying” rule for tax returns and payments.

If your return is filed late, the postmark or 

delivery service date does not determine the 

date of filing. In that case, your return is considered filed when it is received by the IRS.

Extensions

You may be able to get an extension of time to 

file your return and pay your tax.

Automatic 2-month extension. You can get 

an automatic 2-month extension (to June 15, for 

a calendar year return) to file your return and 

pay your tax if you are a U.S. citizen or resident 

and, on the regular due date of your return, you 

are living outside the United States and Puerto 

Rico and your main place of business or post of 

duty is outside the United States and Puerto 

Rico. To get this extension, you must attach a 

statement to your return explaining how you 

qualified. You will owe interest on any tax not 

paid by the regular due date of your return.

Married taxpayers. If you file a joint return, 

either you or your spouse can qualify for the automatic extension. If you and your spouse file 

separate returns, the extension applies only to 

the spouse who qualifies.

Additional extension. You can apply for an 

additional extension of time to file your return by 

filing Form 4868. You must file Form 4868 by 

the due date for your income tax return.

Generally, you must file it by April 15. However, if you qualify for the automatic 2-month 

extension, you generally must file Form 4868 by 

June 15. Check the box on line 8 of Form 4868.

Payment of tax. You should estimate and 

pay any additional tax you owe when you file 

Form 4868 to avoid being charged a late-payment penalty. The late-payment penalty applies 

if, through withholding, etc., you paid less than 

90% of your actual tax liability by the original 

due date of your income tax return. Even if the 

late-payment penalty does not apply, you will 

be charged interest on any unpaid tax liability 

from the original due date of the return until the 

tax is paid.

Electronic filing. You can file for the additional extension by phone, using your home 

computer, or through a tax professional. See 

Form 4868 for more information.

Limit on additional extensions. You generally cannot get a total extension of more than 6 

months. However, if you are outside the United 

States and meet certain tests, you may be able 

to get a longer extension.

Page 2 Publication 516 (November 2018)
For more information, see Pub. 54.

Foreign Bank Accounts

FinCEN Form 114. You must file Form 114, 

Report of Foreign Bank and Financial Accounts 

(FBAR), if you had any financial interest in, or 

signature or other authority over a bank, securities, or other financial account in a foreign country. You do not need to file the report if the assets are with a U.S. military banking facility 

operated by a financial institution or if the combined assets in the account(s) are $10,000 or 

less during the entire year.

Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). See the filing instructions at https://

bsaefiling.fincen.treas.gov.

Form 8938. You also may be required to file 

Form 8938 with your U.S. income tax return to 

report your interest in foreign bank accounts 

and other specified foreign financial assets. For 

taxpayers living abroad, you generally do not 

have to file Form 8938 unless the total value of 

your specified foreign financial assets is more 

than $200,000 ($400,000 if married filing jointly) 

on the last day of the tax year or more than 

$300,000 ($600,000 if married filing jointly) at 

any time during the tax year. For more information, see Form 8938 and its instructions.

U.S. Government Payments

Wages earned for performing services outside 

the United States is foreign income, regardless 

of your employer. If you are a U.S. citizen or 

resident alien, you must report all income from 

worldwide sources on your tax return unless it is 

exempt by U.S. law. This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital 

gains). If you are a nonresident alien, your income from sources outside the United States is 

not subject to U.S. tax.

Foreign Earned

Income Exclusion

Employees of the U.S. Government are not entitled to the foreign earned income exclusion or 

the foreign housing exclusion/deduction under 

section 911 because “foreign earned income” 

does not include amounts paid by the U.S. Government to you as an employee. But see Other 

Employment, later.

Special Situations

In the following two situations, your pay is from 

the U.S. Government and does not qualify for 

the foreign earned income exclusion.

U.S. agency reimbursed by foreign country. 

If you are a U.S. Government employee paid by 

a U.S. agency to perform services in a foreign 

country, your pay is from the U.S. Government 

and does not qualify for the foreign earned income exclusion or the foreign housing exclusion/deduction. This is true even if the U.S. 

agency is reimbursed by the foreign government.

Employees of post exchanges, etc. If you 

are an employee of an Armed Forces post exchange, officers’ and enlisted personnel club, 

Embassy commissary, or similar instrumentality 

of the U.S. Government, the earnings you receive are paid by the U.S. Government. This is 

true whether they are paid from appropriated or 

nonappropriated funds. These earnings are not 

eligible for the foreign earned income exclusion 

or the foreign housing exclusion/deduction.

Tax Treaty Benefits

Most income tax treaties contain an article relating to remuneration from government services. 

Even if you are working in a foreign country with 

which the United States has an income tax 

treaty in force and the treaty article that applies 

to government services says that your government pay is taxable only in the foreign country, 

the treaty will likely contain a “saving clause,” 

which provides that the United States may tax 

its citizens and its residents as if the treaty had 

not come into effect. In some treaties, the government service article is an exception to the 

saving clause, but often only for individuals who 

are not U.S. citizens or green card holders. 

Consequently, if you are a U.S. citizen or green 

card holder, you will generally not be entitled to 

reduce your U.S. tax on your government pay. If 

you are neither a U.S. citizen nor green card 

holder, and you are treated as a resident of the 

treaty country under the treaty residence article 

(after application of the so-called “tie-breaker” 

rule), then you may be entitled to benefits under 

the government service article. Review the 

treaty text carefully.

U.S. citizens must always file Form 

1040. Non-U.S. citizens who are treated as a resident of a treaty country under the treaty residence article (after application 

of the so-called “tie-breaker” rule) may file Form 

1040NR and attach Form 8833.

If you pay or accrue taxes to the foreign 

country on your pay, you may be able to relieve 

double taxation with a foreign tax credit. Most 

income tax treaties contain an article providing 

relief from double taxation. Many treaties contain special foreign tax credit rules for U.S. citizens who are residents of a treaty country. For 

more information on the mechanics of the foreign tax credit, see Foreign Taxes, later.

Allowances, Differentials, 

and Special Pay

Most payments received by U.S. Government 

civilian employees for working abroad, including 

pay differentials, are taxable. However, certain 

foreign areas allowances, cost of living allowances, and travel allowances are tax free. The following discussions explain the tax treatment of 

allowances, differentials, and other special pay 

you receive for employment abroad.

Pay differentials. Pay differentials you receive 

as financial incentives for employment abroad 

are taxable. Your employer should have included these differentials as wages on your Form 

W-2, Wage and Tax Statement.

TIP

Generally, pay differentials are given for employment under adverse conditions (such as 

severe climate) or because the post of duty is 

located in a hazardous or isolated area that 

may be outside the United States. The area 

does not have to be a qualified hazardous duty 

area as discussed in Pub. 3. Pay differentials include:

• Post differentials,

• Special incentive differentials, and

• Danger pay.

Foreign areas allowances. Allowances (other 

than post differentials) received under the following laws are tax free.

• Chapter 9 of Title I of the Foreign Service 

Act of 1980.

• Section 4 of the Central Intelligence 

Agency Act of 1949, as amended.

• Title II of the Overseas Differentials and Allowances Act.

• Subsection (e) or (f) of the first section of 

the Administrative Expenses Act of 1946, 

as amended, or section 22 of such Act (5 

U.S.C. sections 5726(b); 5727(b), (d)–(f); 

and 5913).

Your employer should not have included these 

allowances as wages on your Form W-2. These 

allowances cover such expenses as:

• Certain repairs to a leased home,

• Education of dependents in special situations,

• Motor vehicle shipment,

• Separate maintenance for dependents,

• Temporary quarters,

• Transportation for medical treatment, and

• Travel, moving, and storage.

Allowances received by U.S. government civilian employees for the shipment of household goods and personal 

effects to or from a post of duty under 5 U.S.C. 

sections 5722–5724 are not exempt from tax.

Allowances received by foreign service employees for representation expenses are also 

tax free under the above provisions.

Cost-of-living allowances. If you are stationed outside the continental United States or 

in Alaska, your gross income does not include 

cost-of-living allowances (other than amounts 

received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United 

States. The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying 

allowance is included in gross income. 

Cost-of-living allowances are not included on 

your Form W-2.

Federal court employees. If you are a 

federal court employee, the preceding paragraph also applies to you. The cost-of-living allowance must be granted by rules similar to regulations approved by the President.

American Institute in Taiwan. If you are an 

employee of the American Institute in Taiwan, 

allowances you receive are exempt from U.S. 

tax if they are equivalent to tax-exempt allowances received by civilian employees of the U.S. 

Government.

CAUTION

!

Publication 516 (November 2018) Page 3
Federal reemployment payments after serving with an international organization. If you 

are a federal employee who is reemployed by a 

federal agency after serving with an international organization, you must include in income 

any reemployment payments you receive. 

These payments are equal to the difference between the pay, allowances, post differential, 

and other monetary benefits paid by the international organization and the pay and other 

benefits that would have been paid by the federal agency had you been detailed to the international agency.

Allowances or reimbursements for travel 

and transportation expenses. See How To 

Report Business Expenses, later, for a discussion on whether a reimbursement or allowance 

for travel or transportation is included in your income.

Lodging furnished to a principal representative of the United States. If you are a principal representative of the United States stationed in a foreign country, you do not have to 

include in income the value of lodging (including 

utilities) provided to you as an official residence. 

However, amounts paid by the U.S. Government for your usual costs of operating and 

maintaining your household are taxable. If 

amounts are withheld from your pay to cover 

these expenses, you cannot exclude or deduct 

those amounts from your income.

Peace Corps. If you are a Peace Corps volunteer or volunteer leader, some allowances you 

receive are taxable and others are not.

Taxable allowances. The following allowances must be included on your Form W-2 and 

reported on your return as wages.

• If you are a volunteer leader, allowances 

paid to your spouse and minor children 

while you are training in the United States.

• The part of living allowances designated 

by the Director of the Peace Corps as basic compensation. This is the part 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.”

Taxable allowances are considered received by 

you when credited to your account.

Example. Gary Carpenter, a Peace Corps 

volunteer, gets $175 a month during his period 

of service, to be paid to him in a lump sum at 

the end of his tour of duty. Although the allowance is not available to him until the end of his 

service, Gary must include it in his income on a 

monthly basis as it is credited to his account.

Nontaxable allowances. These generally 

include travel allowances and the part of living 

allowances for housing, utilities, food, clothing, 

and household supplies. These allowances 

should not be included on your Form W-2. 

These allowances are tax free whether paid by 

the U.S. Government or the foreign country in 

which you are stationed.

Other Income

Other employment. If, in addition to your U.S. 

government pay, you receive income from a private employer or self-employment, you may 

qualify to claim the foreign earned income exclusion and the foreign housing exclusion and 

deduction under section 911 based on this 

other income provided you meet either the bona 

fide residence test or the physical presence 

test. In addition, if your spouse is a U.S. citizen 

or resident alien who earns income in a foreign 

country that is paid by a private employer or is 

from self-employment, he or she may also qualify for the exclusion or the deduction. For more 

information, see Pub. 54.

The tax treaty rules relating to income from 

personal services generally apply to income 

from private employment. As discussed above, 

the saving clause applies to you if you are a 

U.S. citizen or if you are a resident of the United 

States under the treaty residence article (after 

application of the so-called “tie-breaker” rule).

Sale of personal property. If you have a gain 

from the sale of your personal property (such as 

an automobile or a home appliance), whether 

directly or through a favorable exchange rate in 

converting the proceeds to U.S. dollars, the excess of the amount received in U.S. dollars over 

the cost or other basis of the property is a capital gain. Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. 

However, losses from sales of your personal 

property, whether directly or through an unfavorable exchange rate, are not deductible.

Sale of your home. All or part of the gain on 

the sale of your main home, within or outside 

the United States, may be taxable. Losses are 

not deductible.

You may be able to exclude from income 

any gain up to $250,000 ($500,000 on a joint return). Generally, you must have owned and 

used the home as your main residence for 2 of 

the 5 years preceding the date of sale.

You can choose to have the 5-year test period for ownership and use suspended during 

any period you or your spouse is serving on 

qualified official extended duty as a member of 

the uniformed services, as a member of the 

Foreign Service of the United States, as an employee of the intelligence community, or as an 

employee or volunteer of the Peace Corps.

For detailed information on selling your 

home, see Pub. 523.

Deductions and Credits

— Business Expenses

Armed Forces reservists, qualified performing 

artists, fee-basis state or local government officials, and employees with impairment-related 

work expenses may deduct certain expenses 

such as travel expenses, transportation expenses, and other expenses connected to employment. Due to the suspension of miscellaneous 

itemized deductions subject to the 2% floor under section 67(a), employees who do not fit into 

one of the listed categories may not deduct employee business expenses. For more information on employee business expenses, see Pub. 

463.

Travel Expenses

Subject to certain limits, you can deduct your 

unreimbursed ordinary and necessary expenses of traveling away from home in connection 

with the performance of your official duties. 

These expenses include such items as travel 

costs, meals, lodging, baggage charges, local 

transportation costs (such as taxi fares), tips, 

and dry cleaning and laundry fees.

Your home for tax purposes (tax home) 

is your regular post of duty regardless 

of where you maintain your family 

home. Your tax home is not limited to the Embassy, consulate, or duty station. It includes the 

entire city or general area in which your principal place of employment is located.

Traveling away from home. You are traveling 

away from home if you meet both of the following requirements.

• Your duties require you to be away from 

the general area of your tax home substantially longer than an ordinary day’s work.

• You need to get sleep or rest to meet the 

demands of your work while away from 

home. This requirement is not satisfied by 

merely napping in your car.

You do not have to be away from your tax home 

for a whole day or from dusk to dawn as long as 

your relief from duty is long enough to get necessary sleep or rest.

Temporary assignment. If your assignment 

or job away from your tax home is temporary, 

your tax home does not change. You are considered to be away from home for the whole period, and your travel expenses are deductible. 

Generally, a temporary assignment in a single 

location is one that is realistically expected to 

last (and does in fact last) for 1 year or less.

However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. An 

assignment or job in a single location is considered indefinite if it is realistically expected to 

last for more than 1 year, whether or not it actually lasts for more than 1 year.

You must determine whether your assignment is temporary or indefinite when you start 

work. If you expect employment to last for 1 

year or less, it is temporary unless there are 

facts and circumstances that indicate otherwise. Employment that is initially temporary may 

become indefinite due to changed circumstances. A series of assignments to the same location, all for short periods but that together cover 

a long period, may be considered an indefinite 

assignment.

Exception for federal crime investigations or prosecutions. If you are a federal 

employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from 

your tax home for more than 1 year. This exception to the 1-year rule applies if the Attorney 

General certifies that you are traveling for the 

federal government in a temporary duty status 

to prosecute, or provide support services for the 

investigation or prosecution of, a federal crime.

TIP

Page 4 Publication 516 (November 2018)
Limit on meals You can generally deduct only 

50% of the cost of your unreimbursed business-related meals. Generally, entertainment 

and entertainment-related meal expenses, 

membership dues, and facilities used in connection with these activities cannot be deducted.

Primary purpose of trip must be for business. If your trip was entirely for business, your 

unreimbursed travel expenses are generally deductible. However, if you spend some of your 

time on nonbusiness activities, part of your expenses may not be deductible.

If your trip was mainly personal, you cannot 

deduct your travel expenses to and from your 

destination. This applies even if you engage in 

business activities while there. However, you 

can deduct any expenses while at your destination that are directly related to your business.

Expenses paid for others. You generally 

cannot deduct travel expenses of your spouse, 

dependents, or other individuals who go with 

you on a trip.

Home leave. The Foreign Service Act requires 

U.S. citizens who are members of the foreign 

service to take a leave of absence after completing 3 years of continuous service abroad. 

This period is called “home leave” and can be 

used to take care of certain personal matters 

such as medical and dental checkups, buying a 

new wardrobe, and visiting relatives.

The amounts paid for your travel, meals, 

and lodging while on home leave are deductible 

as travel or business expenses subject to the 

rules and limits discussed earlier. You must be 

able to verify these amounts in order to claim 

them. Amounts paid on behalf of your family 

while on home leave are personal living expenses and are not deductible.

More information. See chapter 1 of Pub. 463 

for more information on travel expenses.

Transportation Expenses

You can deduct allowable transportation expenses that are directly related to your official duties. Transportation expenses include the cost 

of transportation by air, rail, bus, or taxi, and the 

cost of driving and maintaining your car. They 

do not include expenses you have when traveling away from home overnight. Those expenses are deductible as travel expenses and are 

discussed earlier.

Commuting. You cannot deduct your transportation costs of going between your home 

and your regular business location. These costs 

are personal commuting expenses.

If you have one or more regular business locations but must work at a temporary location, 

you can deduct the costs of commuting to that 

temporary place of work.

If you work at two or more places in the 

same day, you can deduct your expenses of 

getting from one place of work to the other.

More information. For more information on 

transportation expenses, see chapter 4 of Pub. 

463.

Other Employee

Business Expenses

If you are one of the following individuals, special rules apply to deducting your employee 

business expenses.

Armed Forces reservist (member of a reserve component). You are a member of a reserve component of the Armed Forces of the 

United States if you are in the Army National 

Guard of the United States, Army, Navy, Marine 

Corps, the Air National Guard of the United 

States, Air Force, Coast Guard Reserve, or the 

Reserve Corps of the Public Health Service.

If you qualify, complete Form 2106 and include the amount attributable to the expenses 

for travel more than 100 miles away from home 

in connection with your performance of services 

as a member of the reserves, and attach Form 

2106 to your return. These reserve-related 

travel expenses are deductible whether or not 

you itemize deductions. See Pub. 463 for additional details on how to report these expenses.

Fee-basis state or local government official. 

You are a qualifying fee-basis official if you are 

employed by a state or political subdivision of a 

state and are compensated, in whole or in part, 

on a fee basis.

If you qualify, complete Form 2106 and include the amount attributable to the expenses 

you incurred for services performed in that job, 

and attach Form 2106 to your return. These employee business expenses are deductible 

whether or not you itemize deductions.

Qualified performing artist. You are a qualified performing artist if you:

1. Performed services in the performing arts 

as an employee for at least two employers 

during the tax year,

2. Received from at least two of those employers wages of $200 or more per employer,

3. Had allowable business expenses attributable to the performing arts of more than 

10% of gross income from the performing 

arts, and

4. Had adjusted gross income of $16,000 or 

less before deducting expenses as a performing artist.

In addition, if you are married, you must file 

a joint return unless you lived apart from your 

spouse for all of 2018. If you file a joint return, 

you must figure requirements (1), (2), and (3) 

separately for both you and your spouse. However, requirement (4) applies to the combined 

adjusted gross income of both you and your 

spouse.

If you meet all the requirements for a qualified performing artist, complete Form 2106 and 

include the amount attributable to performing-arts-related expenses, and attach Form 

2106 to your return. Your performing-arts-related business expenses are deductible whether 

or not you itemize deductions.

Disabled employee with impairment-related 

work expenses. Impairment-related work expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at his or her place of employment. 

They also include other expenses in connection 

with the place of employment that enable the 

employee to work. See Pub. 463 for more details. If you qualify, complete Form 2106 and include the amount attributable to impairment-related work expenses, and attach Form 2106 to 

your return.

To deduct any expenses for travel, including those certified by the Secretary 

of State, you must meet the rules for 

recordkeeping and accounting to your employer. These rules are explained in Pub. 463.

Recordkeeping Rules

If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses.

For example, you must keep records and 

supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from 

home).

• The amount of each separate expense for 

travel away from home, such as the cost of 

your transportation, lodging, or meals. You 

may total your incidental expenses if you 

list them in reasonable categories such as 

daily meals, gasoline and oil, and taxi 

fares.

• For each trip away from home, the dates 

you left and returned and the number of 

days spent on business.

• The destination or area of your travel, described by the name of the city, town, or 

similar designation.

• The business reason for your travel or the 

business benefit gained or expected to be 

gained from your travel.

How to record your expenses. Records for 

proof of your expenses should be kept in an account book, diary, statement of expense, or 

similar record. They should be supported by 

other records, such as receipts or canceled 

checks, in sufficient detail to establish the elements for these expenses. You do not need to 

duplicate information in an account book or diary that is shown on a receipt as long as your 

records and receipts complement each other in 

an orderly manner.

Each expense should be recorded separately in your records. However, some items 

can be totaled in reasonable categories. You 

can make one daily entry for categories such as 

taxi fares, telephone calls, meals while away 

from home, gas and oil, and other incidental 

costs of travel. You may record tips separately 

or with the cost of the service.

Documentary evidence generally is required to support all lodging expenses 

while traveling away from home. It is 

also required for any other expense of $75 or 

more, except transportation charges if the evidence is not readily available. Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. It ordinarily will be 

considered adequate if it shows the amount, 

TIP

RECORDS

Publication 516 (November 2018) Page 5
date, place, and essential business character of 

the expense.

A canceled check drawn payable to a 

named payee would not by itself support a business expenditure. You must 

have other evidence to show that the check was 

used for a business purpose.

Your records must be timely. Record the elements for the expense in your account book or 

other record at or near the time of the expense. 

A timely kept record has more value than statements prepared later when, generally, there is a 

lack of accurate recall.

Confidential information. You do not need to 

put confidential information relating to an element of a deductible expense (such as the 

place, business purpose, or business relationship) in your account book, diary, or other record. However, you do have to record the information elsewhere at or near the time of the 

expense and have it available to fully prove that 

element of the expense.

More information. Recordkeeping is discussed in detail in chapter 5 of Pub. 463, 

Travel, Gifts, and Car Expenses.

How To Report

Business Expenses

As a U.S. Government employee, your business expense reimbursements are generally 

paid under an accountable plan and are not included in your wages on your Form W-2. If your 

expenses are not more than the reimbursements, you do not need to show your expenses 

or reimbursements on your return.

However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable 

period of time, the advance (or excess) will be 

included in your wages on your Form W-2.

Deductions and Credits

— Nonbusiness Expenses

In addition to deductible business expenses, 

you may be entitled to deduct certain other expenses.

Moving Expenses

If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you can deduct your unreimbursed moving expenses.

What constitutes a permanent change of 

station? A permanent change of station includes:

• A move from your home to your first post of 

active duty,

• A move from one permanent post of duty 

to another, and

• A move from your last post of duty to your 

home or to a nearer point in the United 

States. The move must occur within 1 year 

of ending your active duty or within the peCAUTION

!

riod allowed under the Joint Travel Regulations.

Deductible moving expenses. Moving expenses that can be deducted include the reasonable costs of:

• Moving household goods and personal effects (including packing, crating, in-transit 

storage, and insurance) of both you and 

members of your household, and

• Traveling (including lodging) from the former residence to the new place of residence.

The cost of your meals is not a deductible moving expense.

The costs of moving household goods include the reasonable expenses of moving 

household goods and personal effects to and 

from storage. For a foreign move, the costs also 

include expenses of storing the goods and effects for part or all of the period that your new 

job location abroad continues to be your main 

job location.

Expenses must be reasonable. You can 

deduct only those expenses that are reasonable for the circumstances of your move. For example, the costs of traveling from your former 

home to your new one should be by the shortest, most direct route available by conventional 

transportation.

Members of your household. A member 

of your household includes anyone who has 

both your former home and new home as his or 

her home. It does not include a tenant or employee unless you can claim that person as a 

dependent.

Retirees. You can deduct the costs of moving 

to the United States when you permanently retire if both your former main job location and former home were outside the United States and 

its possessions.

Survivors. You can deduct moving expenses 

for a move to the United States if you are the 

spouse or dependent of a person whose main 

job location at the time of death was outside the 

United States and its possessions. The move 

must begin within 6 months after the decedent’s 

death. It must be from the decedent’s former 

home outside the United States, and that home 

must also have been your home.

How to report moving expenses. Use Form 

3903 to report your moving expenses and figure 

your allowable deduction. Claim the deduction 

as an adjustment to income on Form 1040.

Reimbursements. Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income 

for the year paid. You also must include in gross 

income reimbursements paid to you under a 

nonaccountable plan. However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay.

Additional information. For additional information about moving expenses, see Pub. 521.

CAUTION

!

Other Itemized Deductions

You may be able to claim other itemized deductions not connected to your employment.

Contributions. You can deduct contributions 

to qualified organizations created or organized 

in or under the laws of the United States or its 

possessions. You cannot deduct contributions 

you make directly to foreign organizations (except for certain Canadian, Honduras, Israeli, 

and Mexican charities), churches, and governments. For more information, see Pub. 526, 

Charitable Contributions.

Real estate tax and home mortgage interest. If you receive a tax-free housing allowance, your itemized deductions for real estate 

taxes and home mortgage interest are limited. 

You must reduce the amount of each deduction 

that would otherwise be allowable by the 

amount of each expense that is related to the 

tax-free allowance.

Example. Adam is a federal employee 

working overseas who receives a $6,300 

tax-free housing and utility allowance. During 

the year, Adam used the allowance, with other 

funds, to provide a home for himself. His expenses for this home totaled $8,400 and consisted 

of mortgage principal ($500), insurance ($400), 

real estate taxes ($1,400), mortgage interest 

($4,000), and utility costs ($2,100). Adam did 

not have any other expenses related to providing a home for himself.

Adam must reduce his deductions for home 

mortgage interest and real estate taxes. He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 

(the total housing and utility allowance) and its 

denominator is $8,400 (the total of all payments 

to which the housing and utility allowance applies). The result is 3/4. Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid × 3/4) and his 

otherwise allowable real estate tax deduction 

by $1,050 (the $1,400 he paid × 3/4). He can deduct $1,000 of his mortgage interest ($4,000 − 

$3,000) and $350 of his real estate taxes 

($1,400 − $1,050) when he itemizes his deductions.

Exception to the reduction. If you receive 

a tax-free housing allowance as a member of 

the military or the clergy, you do not have to reduce your deductions for real estate tax and 

home mortgage interest expenses you are otherwise entitled to deduct.

Required statement. If you receive a 

tax-free housing allowance and have real estate 

tax or home mortgage interest expenses, attach 

a statement to your tax return. The statement 

must contain all of the following information.

• The amount of each type of tax-free income you received, such as a tax-free 

housing allowance or tax-free representation allowance.

• The amount of otherwise deductible expenses attributable to each type of tax-free 

income.

• The amount attributable to each type of 

tax-free income that was not directly attributable to that type of tax-free income.

Page 6 Publication 516 (November 2018)
• An explanation of how you determined the 

amounts not directly attributable to each 

type of tax-free income.

The statement must also indicate that none 

of the amounts deducted on your return are in 

any way attributable to tax-free income.

Foreign Taxes

If you pay or accrue taxes to a foreign government, you generally can choose to either claim 

them as a credit against your U.S. income tax liability or deduct them as an itemized deduction 

when figuring your taxable income.

Do not include the foreign taxes paid or 

accrued as withheld income taxes on 

your Form 1040.

Foreign tax credit. Your foreign tax credit is 

subject to a limit based on your taxable income 

from foreign sources. If you choose to figure a 

credit against your U.S. tax liability for the foreign taxes, you generally must complete Form 

1116 and attach it to your U.S. income tax return.

You cannot claim a credit for foreign taxes 

paid on amounts excluded from gross income 

under the foreign earned income or housing exclusions. If all your foreign income is exempt 

from U.S. tax, you will not be able to claim a foreign tax credit.

If, because of the limit on the credit, you 

cannot use the full amount of qualified foreign 

taxes paid or accrued in the tax year, you are 

allowed to carry the excess back 1 year and 

then forward 10 years.

Exemption from limit. You can elect to not 

be subject to the foreign tax limit if you meet all 

the following conditions.

• Your only foreign income is passive income, such as interest, dividends, and royalties.

• The total of all your foreign taxes is not 

more than $300 ($600 for joint tax returns).

• The foreign income and taxes are reported 

to you on a payee statement, such as 

Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income.

If you make the election, you can claim a foreign tax credit without filing Form 1116. However, you cannot carry back or carry over any 

unused foreign tax to or from this year.

Foreign tax deduction. You cannot deduct 

foreign taxes paid on income you exclude under 

the foreign earned income or housing exclusions.

Example. Dennis and Christina are married 

and live and work in Country X. Dennis works 

for the U.S. Government and Christina is employed by a private company. They pay income 

tax to Country X on Christina’s income only.

Dennis and Christina file a joint tax return 

and exclude all of Christina’s income. They cannot claim a foreign tax credit or take a deduction 

for the taxes paid to Country X.

More information. The foreign tax credit and 

deduction, their limits, and carryback and carryCAUTION

!

over provisions are discussed in detail in Pub. 

514.

Local (Foreign)

Tax Return

As a U.S. Government employee, you are expected to observe and fulfill all tax obligations 

imposed by the host country government. 

Check with local tax authorities to determine 

whether you are considered a tax resident of 

your host country, whether you are required to 

file a host country tax return and whether you 

owe taxes to the host country.

Tax Treaty Benefits

As discussed earlier, most income tax treaties 

contain an article relating to remuneration from 

government services. Review the treaty text 

carefully to determine whether your U.S. Government remuneration is taxable in the host 

country. You will first have to determine whether 

you are a resident of your host country under 

the treaty residence article (after application of 

the so-called “tie-breaker” rule).

If you or your spouse receives income from 

a private employer or self-employment, review 

the tax treaty rules relating to income from personal services and to business profits to determine whether that income is taxable in the host 

country.

If you pay or accrue taxes to both the host 

country and the United States, you may be able 

to relieve double taxation with a foreign tax 

credit. Most income tax treaties contain an article providing relief from double taxation. Many 

treaties contain special foreign tax credit rules 

for U.S. citizens who are residents of a treaty 

country. For more information about the foreign 

tax credit, see Foreign Taxes, earlier.

Other Agreements

The United States may be a party to agreements other than income tax treaties that may 

affect your tax obligations to the host country. 

For example, consular employees may be exempt from host country tax under the Vienna 

Convention on Consular Relations or bilateral 

consular agreements. Similarly, certain diplomatic staff may be exempt from host country tax 

under the Vienna Convention on Diplomatic Relations. Check with the appropriate U.S. Embassy for more information.

Double Withholding

If your U.S. Government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of 

U.S. tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your 

U.S. income tax return on this income. See Pub. 

505, Tax Withholding and Estimated Tax, for a 

worksheet to determine how to revise Form 

W-4, Employee’s Withholding Allowance Certificate.

How To Get Tax Help

If you have questions about a tax issue, need 

help preparing your tax return, or want to download free publications, forms, or instructions, go 

to IRS.gov and find resources that can help you 

right away.

Tax reform. Major tax reform legislation impacting individuals, businesses, and tax-exempt entities was enacted in the Tax Cuts and 

Jobs Act on December 22, 2017. Go to 

IRS.gov/TaxReform for information and updates on how this legislation affects your taxes.

Preparing and filing your tax return. Find 

free options to prepare and file your return on 

IRS.gov or in your local community if you qualify.

The Volunteer Income Tax Assistance 

(VITA) program offers free tax help to people 

who generally make $55,000 or less, persons 

with disabilities, and limited-English-speaking 

taxpayers who need help preparing their own 

tax returns. The Tax Counseling for the Elderly 

(TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of 

age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

You can go to IRS.gov to see your options 

for preparing and filing your return which include the following.

• Free File. Go to IRS.gov/FreeFile to see if 

you qualify to use brand-name software to 

prepare and e-file your federal tax return 

for free.

• VITA. Go to IRS.gov/VITA, download the 

free IRS2Go app, or call 800-906-9887 to 

find the nearest VITA location for free tax 

return preparation.

• TCE. Go to IRS.gov/TCE, download the 

free IRS2Go app, or call 888-227-7669 to 

find the nearest TCE location for free tax 

return preparation.

Getting answers to your tax questions. On IRS.gov, get answers to your 

tax questions anytime, anywhere.

• Go to IRS.gov/Help for a variety of tools 

that will help you get answers to some of 

the most common tax questions.

• Go to IRS.gov/ITA for the Interactive Tax 

Assistant, a tool that will ask you questions 

on a number of tax law topics and provide 

answers. You can print the entire interview 

and the final response for your records.

• Go to IRS.gov/Pub17 to get Pub. 17, Your 

Federal Income Tax for Individuals, which 

features details on tax-saving opportunities, 2018 tax changes, and thousands of 

interactive links to help you find answers to 

your questions. View it online in HTML, as 

a PDF, or download it to your mobile device as an eBook.

• You may also be able to access tax law information in your electronic filing software.

Getting tax forms and publications. Go to 

IRS.gov/Forms to view, download, or print all of 

the forms and publications you may need. You 

Publication 516 (November 2018) Page 7
can also download and view popular tax publications and instructions (including the 1040 instructions) on mobile devices as an eBook at no 

charge. Or you can go to IRS.gov/OrderForms 

to place an order and have forms mailed to you 

within 10 business days.

Access your online account (individual taxpayers only). Go to IRS.gov/Account to securely access information about your federal tax 

account.

• View the amount you owe, pay online, or 

set up an online payment agreement.

• Access your tax records online.

• Review the past 24 months of your payment history.

• Go to IRS.gov/SecureAccess to review the 

required identity authentication process.

Using direct deposit. The fastest way to receive a tax refund is to combine direct deposit 

and IRS e-file. Direct deposit securely and electronically transfers your refund directly into your 

financial account. Eight in 10 taxpayers use direct deposit to receive their refund. The IRS issues more than 90% of refunds in less than 21 

days.

Refund timing for returns claiming certain 

credits. The IRS can’t issue refunds before 

mid-February 2019 for returns that claimed the 

earned income credit (EIC) or the additional 

child tax credit (ACTC). This applies to the entire refund, not just the portion associated with 

these credits.

Getting a transcript or copy of a return. The 

quickest way to get a copy of your tax transcript 

is to go to IRS.gov/Transcripts. Click on either 

"Get Transcript Online" or "Get Transcript by 

Mail" to order a copy of your transcript. If you 

prefer, you can:

• Order your transcript by calling 

800-908-9946, or

• Mail Form 4506-T or Form 4506T-EZ (both 

available on IRS.gov).

Using online tools to help prepare your return. Go to IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant 

(IRS.gov/EITCAssistant) determines if 

you’re eligible for the EIC.

• The Online EIN Application (IRS.gov/EIN) 

helps you get an employer identification 

number.

• The IRS Withholding Calculator (IRS.gov/

W4App) estimates the amount you should 

have withheld from your paycheck for federal income tax purposes and can help you 

perform a “paycheck checkup.”

• The First Time Homebuyer Credit Account 

Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and 

account balance.

• The Sales Tax Deduction Calculator 

(IRS.gov/SalesTax) figures the amount you 

can claim if you itemize deductions on 

Schedule A (Form 1040), choose not to 

claim state and local income taxes, and 

you didn’t save your receipts showing the 

sales tax you paid.

Resolving tax-related identity theft issues.

• The IRS doesn’t initiate contact with taxpayers by email or telephone to request 

personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

• Go to IRS.gov/IDProtection for information.

• If your SSN has been lost or stolen or you 

suspect you’re a victim of tax-related identity theft, visit IRS.gov/IdentityTheft to learn 

what steps you should take.

Checking on the status of your refund. 

• Go to IRS.gov/Refunds.

• The IRS can’t issue refunds before 

mid-February 2019 for returns that claimed 

the EIC or the ACTC. This applies to the 

entire refund, not just the portion associated with these credits.

• Download the official IRS2Go app to your 

mobile device to check your refund status.

• Call the automated refund hotline at 

800-829-1954.

Making a tax payment. The IRS uses the latest encryption technology to ensure your electronic payments are safe and secure. You can 

make electronic payments online, by phone, 

and from a mobile device using the IRS2Go 

app. Paying electronically is quick, easy, and 

faster than mailing in a check or money order. 

Go to IRS.gov/Payments to make a payment 

using any of the following options.

• IRS Direct Pay: Pay your individual tax bill 

or estimated tax payment directly from 

your checking or savings account at no 

cost to you.

• Debit or credit card: Choose an approved payment processor to pay online, 

by phone, and by mobile device.

• Electronic Funds Withdrawal: Offered 

only when filing your federal taxes using 

tax return preparation software or through 

a tax professional.

• Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required.

• Check or money order: Mail your payment to the address listed on the notice or 

instructions.

• Cash: You may be able to pay your taxes 

with cash at a participating retail store.

What if I can’t pay now? Go to IRS.gov/

Payments for more information about your options.

• Apply for an online payment agreement 

(IRS.gov/OPA) to meet your tax obligation 

in monthly installments if you can’t pay 

your taxes in full today. Once you complete 

the online process, you will receive immediate notification of whether your agreement has been approved.

• Use the Offer in Compromise Pre-Qualifier 

(IRS.gov/OIC) to see if you can settle your 

tax debt for less than the full amount you 

owe.

Checking the status of an amended return. 

Go to IRS.gov/WMAR to track the status of 

Form 1040X amended returns. Please note that 

it can take up to 3 weeks from the date you 

mailed your amended return for it to show up in 

our system and processing it can take up to 16 

weeks.

Understanding an IRS notice or letter. Go to 

IRS.gov/Notices to find additional information 

about responding to an IRS notice or letter.

Contacting your local IRS office. Keep in 

mind, many questions can be answered on 

IRS.gov without visiting an IRS Tax Assistance 

Center (TAC). Go to IRS.gov/LetUsHelp for the 

topics people ask about most. If you still need 

help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All 

TACs now provide service by appointment so 

you’ll know in advance that you can get the 

service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find 

the nearest TAC, check hours, available services, and appointment options. Or, on the 

IRS2Go app, under the Stay Connected tab, 

choose the Contact Us option and click on “Local Offices.”

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations for individuals, small businesses, 

and tax professionals.

Getting tax information in other languages. 

For taxpayers whose native language isn’t English, we have the following resources available. 

Taxpayers can find information on IRS.gov in 

the following languages.

• Spanish (IRS.gov/Spanish).

• Chinese (IRS.gov/Chinese).

• Vietnamese (IRS.gov/Vietnamese).

• Korean (IRS.gov/Korean).

• Russian (IRS.gov/Russian).

The IRS TACs provide over-the-phone interpreter service in over 170 languages, and the 

service is available free to taxpayers.

The Taxpayer Advocate 

Service (TAS) Is Here To 

Help You

What is TAS?

TAS is an independent organization within the 

IRS that helps taxpayers and protects taxpayer 

rights. Their job is to ensure that every taxpayer 

is treated fairly and that you know and understand your rights under the Taxpayer Bill of 

Rights.

How Can You Learn About Your 

Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic 

rights that all taxpayers have when dealing with 

the IRS. Go to TaxpayerAdvocate.IRS.gov to 

help you understand what these rights mean to 

you and how they apply. These are your rights. 

Know them. Use them.

What Can TAS Do For You?

TAS can help you resolve problems that you 

can’t resolve with the IRS. And their service is 

free. If you qualify for their assistance, you will 

be assigned to one advocate who will work with 

you throughout the process and will do 

Page 8 Publication 516 (November 2018)
everything possible to resolve your issue. TAS 

can help you if:

• Your problem is causing financial difficulty 

for you, your family, or your business;

• You face (or your business is facing) an 

immediate threat of adverse action; or

• You’ve tried repeatedly to contact the IRS 

but no one has responded, or the IRS 

hasn’t responded by the date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of 

Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at 

TaxpayerAdvocate.IRS.gov/Contact-Us. You 

can also call them at 877-777-4778.

How Else Does TAS Help 

Taxpayers?

TAS works to resolve large-scale problems that 

affect many taxpayers. If you know of one of 

these broad issues, please report it to them at 

IRS.gov/SAMS.

TAS also has a website, Tax Reform 

Changes, which shows you how the new tax 

law may change your future tax filings and helps 

you plan for these changes. The information is 

categorized by tax topic in the order of the IRS 

Form 1040. Go to TaxChanges.us for more information.

Low Income Taxpayer 

Clinics (LITCs)

LITCs are independent from the IRS. LITCs 

represent individuals whose income is below a 

certain level and need to resolve tax problems 

with the IRS, such as audits, appeals, and tax 

collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 

Services are offered for free or a small fee. To 

find a clinic near you, visit 

TaxpayerAdvocate.IRS.gov/LITCmap or see 

IRS Pub. 4134, Low Income Taxpayer Clinic 

List.

To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us. Index

A

Allowances 3

American Institute in Taiwan 3

Assistance (See Tax help)

Away from home 4

B

Business expenses, how to 

report 6

C

Combat zone 1

Commuting expenses 5

Contributions 6

Cost-of-living allowances 3

Credit for foreign taxes 7

D

Danger pay (See Pay differentials)

Death due to terrorist action 2

Deduction for foreign taxes 7

Differential pay 3

E

Entertainment expenses 5

Extension of time to file return 2

F

Federal court employees 3

Federal crime investigations 4

Filing information 2

Foreign areas allowances 3

Foreign bank accounts 3

Foreign earned income and 

housing exclusions 3

Foreign income 3

Foreign taxes 7

Forms:

1116 7

3903 6

FinCEN 114 3

H

Home, sale of 4

Home leave 5

Home mortgage interest 6

I

Identity theft 8

Interest on home mortgage 6

International organization, U.S. 

reemployment after serving 

with 4

Itemized deductions:

Contributions 6

Home mortgage interest 6

Real estate tax 6

L

Lodging 4

M

Meal expenses 5

Mortgage interest 6

Moving expenses 6

P

Pay differentials 3

Peace Corps volunteers 4

Personal property, sale of 4

Post differentials (See Pay 

differentials)

Post exchanges 3

Principal representative 4

Proving expenses 5

Publications (See Tax help)

R

Real estate tax 6

Recordkeeping, business 

expenses 5

Reemployed by federal agency 4

Reporting:

Business expenses 6

Moving expenses 6

S

Sale of home 4

Sale of personal property 4

T

Taiwan, American Institute in 3

Tax credit for foreign taxes 7

Tax help 7

Temporary assignment 4

Terrorist action 2

Transportation expenses 5

Travel expenses 4

W

When to file return 2

Publication 516 (November 2018) Page 9