Out-of-pocket health care expenses include medical services, prescription drugs, and medical supplies (e.g. eyeglasses, contact lenses, etc.). Elective procedures such as plastic surgery or elective dental work are generally not allowed.
Taxpayers and their dependents are allowed the standard amount monthly on a per person basis, without questioning the amounts they actually spend. If the amount claimed is more than the total allowed by the health care standards, the taxpayer must provide documentation to substantiate those expenses are necessary living expenses. Generally, the number of persons allowed should be the same as those allowed as dependents on the taxpayer’s most recent year income tax return.
The out-of-pocket health care standard amount is allowed in addition to the amount taxpayers pay for health insurance. For more information see here.
If you want to get your application approved, please don’t exceed the suggested upper limit. If you have to please submit supporting documents to prove why you have to.
Public Transportation
There is a single nationwide allowance for public transportation based on Bureau of Labor Statistics expenditure data for mass transit fares for a train, bus, taxi, ferry, etc. Taxpayers with no vehicle are allowed the standard amount monthly, per household, without questioning the amount actually spent.
If a taxpayer owns a vehicle and uses public transportation, expenses may be allowed for both, provided they are needed for the health and welfare of the taxpayer or family, or for the production of income. However, the expenses allowed would be actual expenses incurred for ownership costs, operating costs and public transportation, or the standard amounts, whichever is less.
If the amount claimed for Ownership Costs, Operating Costs or Public Transportation is more than the total allowed by the transportation standards, the taxpayer must provide documentation to substantiate those expenses are necessary living expenses.
If you want to get your application approved, please don’t exceed the suggested upper limit. If you have to please submit supporting documents to prove why you have to.
Ownership Costs
The ownership costs, shown in the table below, provide the monthly allowances for the lease or purchase of up to two automobiles. A single taxpayer is normally allowed one automobile. For each automobile, taxpayers will be allowed the lesser of:
If a taxpayer has no lease or car loan payment, the amount allowed for Ownership Costs will be $0.
If you want to get your application approved, please don’t exceed the suggested upper limit. If you have to please submit supporting documents to prove why you have to.
National Standards: Food, Clothing and Other Items
National Standards have been established for five necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous.
The National Standard for Food, Clothing and Other Items includes an amount for miscellaneous expenses. This miscellaneous allowance is for expenses taxpayers may incur that are not included in any other allowable living expense items, or for any portion of expenses that exceed the Collection Financial Standards and are not allowed under a deviation.
The standards are derived from the Bureau of Labor Statistics Consumer Expenditure Survey. The survey collects information from the Nation’s households and families on their buying habits (expenditures), income and household characteristics.
If you want to get your application approved, please don’t exceed the suggested upper limit. If you have to please submit supporting documents to prove why you have to.
Local Standards: Housing and Utilities
The housing and utilities standards are derived from U.S. Census Bureau, American Community Survey and BLS data, and are provided by state down to the county level. 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 also provided for Puerto Rico.
Housing and Utilities standards include mortgage or rent, property taxes, interest, insurance, maintenance, repairs, gas, electric, water, heating oil, garbage collection, residential telephone service, cell phone service, cable television, and Internet service. The tables include five categories for one, two, three, four, and five or more persons in a household.
Additional information and the standard amounts are available by state or territory on our Housing and Utilities Standards web page. You may also download the standardsPDF in PDF format for printing. Please be advised that the housing and utilities document is 108 printed pages.
If you want to get your application approved, please don’t exceed the suggested upper limit. If you have to please submit supporting documents to prove why you have to.
