Disclaimer: IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. These Standards are effective on March 1, 2011 for purposes of federal tax administration only. Expense information for use in bankruptcy calculations can be found on the website for the U.S. Trustee Program.
National Standards have been established for five necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous.
The standards are derived from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CES) and defined as follows:
Food includes food at home and food away from home. Food at home refers to the total expenditures for food from grocery stores or other food stores. It excludes the purchase of nonfood items. Food away from home includes all meals and snacks, including tips, at fast-food, take-out, delivery and full-service restaurants, etc.
Housekeeping supplies includes laundry and cleaning supplies, stationery supplies, postage, delivery services, miscellaneous household products, and lawn and garden supplies.
Apparel and services includes clothing, footwear, material, patterns and notions for making clothes, alterations and repairs, clothing rental, clothing storage, dry cleaning and sent-out laundry, watches, jewelry and repairs to watches and jewelry.
Personal care products and services includes products for the hair, oral hygiene products, shaving needs, cosmetics and bath products, electric personal care appliances, and other personal care products.
Taxpayers are allowed the total National Standards amount monthly for their family size, without questioning the amounts they actually spend. If the amount claimed is more than the total allowed by the National Standards, the taxpayer must provide documentation to substantiate those expenses are necessary living expenses. Generally, the total number of persons allowed for National Standards should be the same as those allowed as exemptions on the taxpayer’s most recent year income tax return.
| Expense |
One Person |
Two Persons |
Three Persons |
Four Persons |
| Food |
$300 |
$537 |
$639 |
$757 |
| Housekeeping supplies |
$29 |
$66 |
$65 |
$74 |
| Apparel & services |
$86 |
$162 |
$209 |
$244 |
| Personal care products & services |
$32 |
$55 |
$61 |
$67 |
| Miscellaneous |
$87 |
$165 |
$197 |
$235 |
| Total |
$534 |
$985 |
$1,171 |
$1,377 |
| More than four persons |
Additional Persons Amount |
| For each additional person, add to four-person total allowance: |
$262 |
References/Related Topics
Rate the Small Business and Self-Employed Web Site
|
