Living Quarters Allowance Reconciliation

Definition of Living Quarters Allowance Reconciliation

Living Quarters Allowance Reconciliation is a comparison of estimated expenses paid to an employee versus actual expenditures to determine if an overpayment or underpayment of allowances occurred.  The payments cannot exceed the maximum allowance set by the Department of State.  The LQA reconciliation is completed after 12 months in your new residence and whenever you move to a new residence.   Reconciliation may result in additional payments made to you or may result in your being indebted to the government.  If you are indebted, you will receive a letter from the Defense Finance and Accounting Service (DFAS) with the amount and explanation.

To Initiate Reconciliation

For the reconciliation to be completed, you will need to submit a completed SF-1190, LQA Annual/Interim Computation Worksheet, actual receipts for utility bills, year-end utility billing statements, and actual expense statement from landlord first 12 months of residency, if applicable. Provide completed documents to

How Long Will It Take for the Reconciliation to be Completed

Reconciliation may take up to four weeks to complete.