### Question
How does the law define housing cost amount?


### Answer
Under *26 U.S.C. § 911*, **housing cost amount** is defined as:

> an amount equal to the excess of—


(A) the housing expenses of an individual for the taxable year, over


(B) an amount equal to the product of—


(i) 16 percent of the salary (computed on a daily basis) of an employee of the United States who is compensated at a rate equal to the annual rate paid for step 1 of grade GS–14, multiplied by


(ii) the number of days of such taxable year within the applicable period described in subparagraph (A) or (B) of subsection (d)(1)

#### Citation:
  - *26 U.S.C. § 911*
  - Heading: **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**

