How well do you live?

[Nextgen]

I've been running our finances through the means calculators and am finding that we could actually live better off the IRS standards than we have been, trying to keep afloat. In a few situations we were above the IRS standards but in most below.

Anyone else find this to be the case?

Two quick questions.

My son is in college, first year and 18, for IRS purposes I get to declare him as a member of the household, will I be able to in CH 13 Plan?

Second Question: The only place I spend more than the IRS standards are (Actual Utility Bills +150 due to very large house, Pet Care $75.00, home upkeep:1 acre lawn care) If I can show these are actual expenses, which I can, is this usually a problem?

[DUMBAGAIN]

I've noticed the same thing, I think the IRS standards are much higher than what we actually spend. It would be nice to be able to spend a little more on some items.

[chloe0724]

In a 13, it's your actual expenses. If they are above the IRS standards, you just have to be able to prove it to the Trustee.

[lrprn]

My son is in college, first year and 18, for IRS purposes I get to declare him as a member of the household, will I be able to in CH 13 Plan?

This depends on your trustee's and your bk district's interpretations of family size. Some trustees look at how much time the college student spends at home vs. at school, and if it isn't half the time at home, they'll enter an objection that your family size is too large. You need to ask your lawyer how your trustee and local court deal with students living away from home and family size. Hope this one goes your way and you get to count him.

If I can show these are actual expenses, which I can, is this usually a problem?

As other wise members have already shared, in Ch 13 there's typically more tolerance for expenses that are higher than the usual in your area or differ from the IRS standards. All you have to do is be able prove the expenses if your trustee asks - they are what they are.

During our 341, our Ch 13 trustee questioned our medical expenses which were about twice as high as normal for our area. As soon as I got the words out that my husband is an insulin-dependent diabetic and I had a corneal transplant and other assorted chronic diseases, he moved on and didn't even ask us for proof (although we could have provided it if we had to).

[optimistic1]

In my district, the trustee doesn't even bother looking at the IRS standards, regardless of whether or not you are above or below the median. They have established their own guidelines for expenses that they consider reasonable, and if they exceed, you need to prove it.