The ownership cost portion of the transportation standard, although it applies nationwide, is still considered part of the Local Standards. A conversion chart has been provided with the standards that lists the states that comprise each Census Region, as well as the counties and cities included in each MSA. Transportation Expense Standards for taxpayers with a vehicle consist of two parts: nationwide figures for monthly loan or lease payments referred to as ownership costs, and additional amounts for monthly operating costs broken down by Census Region and Metropolitan Statistical Area (MSA).
territories of Guam, the Northern Mariana Islands, and the Virgin Islands.Īvailable for download in MS Excel format.
Note: Effective October 3, 2011, the IRS no longer provides Housing and Utilities Standards for the U.S. The tables include five categories for one, two, three, four, and five or more persons in a household. Housing and Utilities standards include mortgage or rent, property taxes, interest, insurance, maintenance, repairs, gas, electric, water, heating oil, garbage collection, telephone, cell phone, internet, and cable. The standard for a particular county and family size includes both housing and utilities allowed for a taxpayer’s primary place of residence. Housing and Utilities Standards are derived from Census and BLS data, and are provided by state down to the county level. National Standards: Food Clothing & Other ItemsĪ. If the IRS determines that the facts and circumstances of a taxpayer’s situation indicate that using the standards is inadequate to provide for basic living expenses, we may allow for actual expenses. However, taxpayers must provide documentation that supports a determination that using national and local expense standards leaves them an inadequate means of providing for basic living expenses.Ģ. Generally, the total number of persons allowed for necessary living expenses should be the same as those allowed as exemptions on the taxpayer’s most recent year income tax return. In most cases, the taxpayer is allowed the amount actually spent, or the local standard, whichever is less. Maximum allowances for housing and utilities and transportation, known as the Local Standards, vary by location. Taxpayers and their dependents are allowed the standard amount on a per person basis, without questioning the amount actually spent. National Standards have also been established for minimum allowances for out-of-pocket health care expenses.
Taxpayers are allowed the total National Standards amount for their family size, without questioning the amount actually spent. National Standards for food, clothing and other items apply nationwide. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or her family's) health and welfare and/or production of income. Allowable living expenses include those expenses that meet the necessary expense test. Collection Financial Standards are used to help determine a taxpayer's ability to pay a delinquent tax liability.