IRS Collection Financial Standards are revised annually and used to determine how much income delinquent taxpayers are allowed to keep to pay their bills (with the rest going to settle their tax debts). Allowable living expenses include those that meet the “necessary expense test.” This test is defined as expenses that are necessary to provide for a taxpayer’s health and welfare or the production of income. Standards for food, clothing and other items apply nationwide while housing standards depend on the locality. Taxpayers are allowed the total national standards amount monthly for their families’ size. For details about the new amounts: https://bit.ly/3n682Ml
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