Is hazard pay and post differential compensation taxable as "foreign earned income" or just the base salary?

Answer 1

If you are an employee of the US government or any of its agencies, none of your income qualifies for the Foreign Earned Income Exclusion. For tax purposes, it's all considered US sourced income.

If you work for a private employer, all wages paid are eligible for inclusion in your Foreign Earned Income Exclusion calculations. Certain amounts designated as for housing may be excludable as well.