IRS Transportation Expenses (Monthly Transportation Standards)

IRS Transportation Expenses
(Monthly Transportation Standards)
Updated January, 2004

Ownership Costs
	First Car	Second Car
National	$450	$326

Operating Costs & Public Transportation Costs
	No Car	One Car	Two Cars
Northeast Region	$225	$298	$393
New York	$296	$365	$461
Philadelphia	$231	$291	$386
Boston	$254	$301	$398
Pittsburgh	$159	$296	$390

Midwest Region	$192	$259	$354
Chicago	$254	$325	$420
Detroit	$311	$381	$477
Milwaukee	$211	$239	$334
Minn.-St.Paul	$271	$309	$404
Cleveland	$194	$290	$383
Cincinnati	$219	$285	$380
St. Louis	$197	$275	$370
Kansas City	$244	$280	$375

South Region	$194	$235	$330
Washington, D.C.	$284	$333	$430
Baltimore	$221	$268	$364
Atlanta	$283	$252	$346
Miami	$279	$336	$431
Tampa	$252	$255	$352
Dallas-Ft. Worth	$308	$335	$430
Houston	$273	$355	$449

West Region	$243	$307	$402
Los Angeles	$270	$374	$471
San Francisco	$318	$391	$486
San Diego	$302	$305	$403
Portland	$186	$258	$352
Seattle	$257	$339	$434
Honolulu	$287	$311	$405
Anchorage	$305	$357	$453
Phoenix	$270	$359	$454
Denver	$307	$344	$439
^* Does not include personal property taxes.

Why are these amounts important? Once again, they are of prime importance if you are considering submitting an Offer in Compromise. Since the IRS began using these Monthly Standards in September, 1995, I have had very few clients that actually spend more than the allowed amounts for Operating Costs. The IRS *MAY* ask for proof of what you actually spend, but my experience has been that they allow the amounts listed and usually do not ask for verification. You do have to prove the amounts you claim for Ownership Costs (purchase or lease). If you are spending more than the allowed amount, you will only be able to claim the maximum listed ($450 for the first car & $326 for the second car). For example, if you are spending $550 on a car payment, the amount we can claim is only $450. If you are spending $250, we claim $250, the actual amount spent.

If you need to know what Counties make up the Metropolitan Areas in which you live, I have them listed here. I also have the list of what states make up the various Regions. However, if you live in California & haven't figured out that you are in the West Region, I'm afraid your taxes are only a small part of the problem!