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Calculator for IRS debtors
How much the IRS lets you spend if you owe back taxes
If you owe the IRS, then for an Installment Agreement, an Offer in Compromise, or Currently Not Collectible status, the IRS measures what you can pay using its own Collection Financial Standards. Calculate your allowable standard below.
TL;DR
When you owe the IRS and can't pay in full, the IRS looks not at your real spending but at its own standards: National Standards (food, clothing, household), out-of-pocket health care, and Local Standards for housing and transportation. Income minus these allowable expenses = what the IRS expects toward the debt each month. If that's ≤ 0, you're a candidate for Currently Not Collectible or a strong Offer in Compromise. Figures are as of April 2025.
📅 Updated: April 21, 2025
Allowable-standard calculator
Enter household size and income. Food/clothing, health care, and transportation auto-fill from the IRS standards; enter your own housing (the IRS caps it at your county limit).
The IRS caps housing at your county limit — look up your county limit on irs.gov
What the Collection Financial Standards are and when they apply
If you owe the IRS and can't pay it all at once, there are three main paths:
1
Installment Agreement
Pay the debt off in scheduled monthly instalments.
2
Offer in Compromise
An agreement to settle for less than the full debt.
3
Currently Not Collectible (CNC)
The IRS pauses collection while you can't pay.
In all three the IRS measures your ability to pay as income minus allowable living expenses. And 'allowable' means the IRS's own standards (Collection Financial Standards), not your actual spending:
• National Standards — food, clothing, household supplies, personal care, miscellaneous. Given by household size automatically, no receipts required.
• Out-of-Pocket Health Care — a fixed amount per person (higher for 65+).
• Local Standards: Housing & Utilities — depends on your COUNTY and household size. The lesser of your actual amount and the county cap is allowed.
• Local Standards: Transportation — vehicle ownership cost plus operating cost by region, or public transit.
Amounts above the standards (an expensive car, luxury housing) generally aren't allowed. The same standards drive the personal-bankruptcy means test, administered by the US Trustee Program at the Department of Justice.
Bottom line: the less disposable income you have after allowable expenses, the softer the terms — up to CNC or a meaningful reduction via OIC. The calculator above is a rough guide; the precise figure is computed on Form 433-A/433-F with documentation.
More on IRS penalties FAQ
On IRS allowable expenses and resolving a tax debt
They're IRS standards, not your real spending. Food/clothing and health care are fixed amounts by household/age with no receipts. Housing and transportation use the lesser of your actual amount and your county/regional cap. Anything above the standard usually isn't counted.