I’ve noticed some questions on Yahoo answers about which allowances are taxable and which are not. At the current time, the only taxable allowance is CONUS COLA, the Cost of Living Allowance paid to people who living in certain expensive parts of the continental United States. By federal law, all new allowances created after 1986 will be taxable. Inexplicably, the Family Supplemental Subsistence Allowance, which was created in 2001, is non-taxable. Go figure.
Basic Allowance for Housing (BAH) – non-taxable
Basic Allowance for Subsistence (BAS) – non-taxable
Clothing Allowance – non-taxable
Cost of Living Allowance (COLA), within the US (CONUS) – taxable
Cost of Living Allowance (COLA), outside the continental US (OCONUS) – non-taxable
Dislocation Allowance (DLA) – non-taxable
Family Separation Allowance (FSA) – non-taxable
Family Subsistence Supplemental Allowance – non-taxable
Move In Housing Allowance (MIHA) – non-taxable
Overseas Housing Allowance (OHA) – non-taxable
Temporary Housing Allowance (TLA) – non-taxable
Temporary Housing Entitlement (TLE) – non-taxable
Please let me know if you see any errors or omissions.
Update: I’m sure you all know this, but if it is called a “pay,” it is usually taxable.