2020 Allowable Living Expenses National Standards

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IRS’s National Standards for Allowable Living Expenses

IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes.

National Standards have been established for five necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous.

See also: Chapter 7 Bankruptcy Explained: Requirements and Steps

Taxpayers are allowed the total National Standards amount monthly for their family size, without questioning the amounts they actually spend.

Expense One Person Two Persons Three Persons Four Persons
Food $385 $715 $779 $947
Housekeeping supplies $45 $67 $73 $71
Apparel & services $85 $158 $192 $251
Personal care products & services $43 $73 $74 $88
Miscellaneous $157 $285 $315 $383

Total

$715 $1,298 $1,433 1,740

 

More than four persons Additional Persons Amount
For each additional person, add to four-person total allowance: $378

Effective on March 12, 2021

Source

Census Bureau Median Family Income By Family Size

Here you can find latest Census Bureau, IRS Data and Administrative Expenses Multipliers for Bankruptcy purposes.

The Administrative Expense Multipliers and IRS’s National Standards for Allowable Living Expenses and Local Standards for Transportation and Housing and Utilities Expenses accessible through this page have been updated. The revised multipliers and standards will apply to cases filed on or after April 1, 2021.

Note: The IRS expense figures posted on this Web site are for use in completing bankruptcy forms. They are not for use in computing taxes or for any other tax administration purpose. Expense information for tax purposes can be found on the IRS Web Site.

Collection Financial Standards for Food, Clothing and Other Items
Expense One Person Two Persons Three Persons Four Persons
Food $385 $715 $779 $947
Housekeeping supplies $45 $67 $73 $71
Apparel & services $85 $158 $192 $251
Personal care products & services $43 $73 $74 $88
Miscellaneous $157 $285 $315 $383
Total $715 $1,298 $1,433 $1,740

 

More than four persons Additional Amount Per Person
For each additional person, add to four-person total allowance: $378

 

 

Bankruptcy Allowable Living Expenses – National Standards (See 11 U.S.C. § 707(b)(2)(A)(ii)(I))
 

Expense One Person Two Persons Three Persons Four Persons
Food & Clothing (Apparel & Services)* $470 $873 $971 $1,198
5% of Food & Clothing $24 $44 $49 $60

 

More than four persons Additional Amount Per Person
Food & Clothing (Apparel & Services)* $260
5% of Food & Clothing $13

* This total may differ from the combination of the two amounts on the table above due to rounding.