Understand what the IRS collection formula counts

Use the combined balance for the tax debts you are reviewing, including listed tax, penalties and interest. Check your notice or IRS account. Do not include state tax or private debt.

Use the household members counted under Form 433-A (OIC). Shared households and people who are not your tax dependents may need individual review; do not automatically count every person at the address.

Count only members included in the household size. This selects the separate out-of-pocket healthcare amount.

Choose where you live. Alaska and Hawaii use separate low-income tables.

Select where you actually live, then confirm the county.

The selection is a lookup, not verification of your address.

Verified ZIP-to-county lookup is temporarily unavailable. Use state and county selection; no county is guessed.

Indicate whether both spouses are submitting a joint offer. Being married or having two people in the household does not by itself establish a joint offer. This matters for the second vehicle exclusion.

Use the AGI on the most recently filed federal income tax return specified by Form 656; do not substitute an unfiled year. This is one low-income certification test, separate from monthly cash flow. Select unknown if you cannot verify it. Leave blank if unknown.

Enter average gross monthly pay before deductions. Enter allowable taxes and health insurance separately so they are not counted twice.

Enter monthly net business income after ordinary business expenses, before personal living expenses, with noncash deductions added back as Form 433-A (OIC) directs. Do not enter gross sales or deduct the same expense twice.

Enter each income source separately as requested on Form 433-A (OIC). Use an average that reflects your current situation; irregular or restricted income may need review.

Enter each income source separately as requested on Form 433-A (OIC). Use an average that reflects your current situation; irregular or restricted income may need review.

Enter the combined monthly costs covered by the housing category, such as rent or mortgage, utilities, property tax and insurance. Do not count an amount again elsewhere.

Enter actual monthly insurance, fuel, maintenance and other included operating costs for the vehicles used. The confirmed county determines the applicable region or metropolitan standard.

Enter the documented monthly amount or balance. Enter zero if none.

Enter monthly premiums you actually pay and have not already deducted elsewhere in this worksheet.

Enter the monthly amount needed for current federal, state and local taxes, using pay records or current estimated payments. Back-tax payments belong elsewhere.

Enter required monthly payments, such as child support or alimony, that you actually pay. Keep the order and payment records.

Enter necessary monthly care costs. The IRS may ask why the care is needed and for payment records.

Enter monthly term-life premiums. Cash-value life insurance needs a separate asset review; a premium field cannot measure its cash surrender value.

Describe and document the expense when discussing an offer with the IRS. A payment being secured does not automatically make it allowable. Unsupported categories cannot be silently deducted.

Only supported necessary expenses are included. Unsecured debt, voluntary retirement contributions and already-counted expenses are not added.

Up to two. Vehicle equity and monthly costs have different rules.

Enter the supported current property value and the ownership facts required by the form. Do not use an unexplained partial share against the entire property loan. Renting means no home asset here; your rent still belongs in housing expenses.

Enter secured debt against that property. Joint ownership, multiple liens or disputed value need review.

Enter cash and bank amounts in the categories requested by Form 433-A (OIC), separately from investments. The bank adjustment is conditional; it is not a blanket reduction for every account.

Enter current nonretirement investments separately. Loans, taxes or access restrictions may change their treatment.

Enter only the debt associated with that investment under the form's instructions. Do not subtract unrelated unsecured debt.

A gross account statement alone may be insufficient. Accessible value, account loans and applicable withdrawal taxes or penalties must follow the retirement rule; unknown required details block that asset calculation.

Enter the documented monthly amount or balance. Enter zero if none.

Enter the documented monthly amount or balance. Enter zero if none.

Enter the documented monthly amount or balance. Enter zero if none.

Enter the documented monthly amount or balance. Enter zero if none.

Enter the documented monthly amount or balance. Enter zero if none.

For a nonzero account: accessible, no larger documented withdrawal adjustment, and not counted as necessary retirement income. Otherwise that asset needs review.

Shared ownership or a nonliable co-owner needs individual review.

Nonliable household contributions and shared expense allocations need individual review.

Net self-employment income alone does not account for business equity.

Special secured claims require a separate factual review.

This worksheet cannot approve a documented expense deviation.

The IRS must separately consider full payment within the collection period. This worksheet does not make that decision.

Choose a lump-sum offer payable in five or fewer months after acceptance, or periodic payments completed within the permitted period of up to 24 months. The future-income multipliers differ from the number of payments you might make.