OIC expenses per category: Should I claim actual amount, max allowable, or lesser of two?

The answer depends on your specific situation and how you're filing the Offer in Compromise. For Form 433-A (OIC), you need to consider both how you're filing and your household situation. If you're living with someone and sharing expenses, even if you're not directly paying the rent/mortgage, you should still claim your portion of the housing expenses. The IRS looks at your actual household situation, not just what comes directly from your account. In your situation, I would recommend listing your reasonable share of the housing costs (option 2), but be prepared to justify why this is reasonable given your household arrangement. Document clearly how you contribute to household expenses through utilities, food, etc., as part of your overall housing arrangement. The IRS will compare your claimed expenses against their allowable standards, and they'll generally accept the lesser of your actual expenses or their standard amount. So if your partner pays $1,500 and the IRS standard is $2,400, the $1,500 would be more appropriate to claim.

I used this tax document analyzer called taxr.ai when I was working on my OIC last year, and it was super helpful for figuring out exactly what expenses I could claim. I was in a similar situation where I was paying for some household expenses but not others. The tool analyzed my situation and gave me personalized guidance on how to report each expense category properly on my OIC forms. You might want to check out https://taxr.ai as it really helped clarify what expenses I could legitimately claim and how to document them correctly.

I tried that taxr.ai tool that someone mentioned above after being skeptical at first. It actually solved my exact problem with OIC expense categories. I was also confused about whether to claim the standard amount or my actual expenses, especially since I had an unusual living arrangement. The tool walked me through each category and helped me understand which expenses to claim and how to document them. It saved me from making a mistake that probably would have gotten my OIC rejected. My offer ended up being accepted last month with the exact expense calculations the tool recommended!

If you're struggling to get answers about your OIC application directly from the IRS, I'd recommend using Claimyr. I spent weeks trying to reach someone at the IRS about my OIC questions and kept getting disconnected or waiting for hours. I found https://claimyr.com and decided to try it since they guarantee you'll get through to an IRS agent. They have this demo video (https://youtu.be/_kiP6q8DX5c) that shows how it works. I got connected to an IRS agent within 20 minutes who specifically answered my questions about how to handle household expenses on my OIC application. They confirmed I should list my reasonable portion of housing expenses even though I wasn't the one writing the rent check.

I need to eat my words about Claimyr from my comment above. After another week of failing to reach the IRS about my OIC questions, I tried the service out of desperation. Within 30 minutes, I was talking to an actual IRS agent who specifically knew about OIC applications. They confirmed that for my situation (similar to the original poster's), I should be listing my proportional share of housing expenses based on my contribution to the household, even if I'm not directly paying rent. The agent went through each expense category with me and explained exactly what documentation I'd need. Saved me weeks of frustration and probably helped prevent my OIC from being rejected for incorrect expense reporting.

For OIC applications, its important to know the IRS will look at your entire household situation not just whats coming directly out of your account. When I did my OIC last year, I had a similar situation. What worked for me was: 1. I documented exactly how expenses were shared in our household 2. Showed how I contributed to household expenses even tho my name wasn't on the rent 3. Created a simple spreadsheet showing all household costs and how they were divided 4. Included bank statements showing my regular payments for utilities, food, etc. The revenue officer who reviewed my case told me they care about the reality of your living situation, not just who writes which check. Make sure you document everything clearly!

Has anyone actually gotten an OIC approved recently? I heard they're rejecting almost all of them now because of new internal policies. Not sure if its even worth all this trouble with the expenses.

Based on your situation, you should list your reasonable share of the housing expenses even though you're not directly paying rent. The IRS looks at your overall household contribution, not just whose name is on specific bills. For your specific case, I'd recommend option 2 - listing the actual amount your partner pays ($1,500) as your housing expense, but you'll need to clearly document how you contribute to the household through utilities, groceries, and insurance payments. This shows the IRS that you're genuinely sharing the housing burden. Make sure to include: - A written explanation of your living arrangement - Bank statements showing your regular payments for household expenses - Documentation that your combined contributions (your utilities/food + partner's rent) cover the total household costs The IRS will compare this against their standard allowable amount ($2,400 in your case), and since $1,500 is less than the standard, it should be acceptable. The key is transparency and consistent documentation that matches what you report on your forms.