Are taxes taken out of my living allowance?

Federal taxes are withheld, but NOT state taxes, local taxes or Social Security. You are responsible for being able to pay any state or local taxes you may owe. It is strongly encouraged that you contact the state and local government tax offices in the state where you are assigned, or where you maintain a permanent residence to help you determine the amount of funds you will need to save to pay your taxes.

 

See Also:

Earning Statement Overview

W-4 IRS Tax Form Overview

W-2 IRS Tax Statement Overview

Do I need to fill out the W-4 form?