These tables may be used to compute your Transportation Expense on Form 433-A Section 9 page 6 line 37. Please note that regardless of your actual automobile expenses, the maximum allowable expense for line 37 is reflected in these tables.

You should also determine how much of your car note payment is allowable by IRS. The first part of the table below is titled "Ownership Costs." You will see that your car payments for your first and second automobiles are limited to a maximum of $450 for the first note payment and $326 for the second note payment. If your monthly note payment(s) is less than these figures, then you will be allowed only your actual payment. If your payment is more than the applicable figure, you will be allowed only what you see in the table.

For example, if your first car payment is $385, then you will be allowed the full $385 in determining your total monthly allowable expenses. However, if your payment is $502, then you will only be allowed $450 in determining your total monthly allowable expenses (you can still spend more than the allowable figure, but IRS will not let you use more than the allowable figure in your computation).

Notice that IRS does not have any allowable figure for more than two automobile payments. If you have more than two such payments, you will not be allowed those additional payments in computing your total monthly allowable car payments.

If you have any automobile lease payments in addition to or instead of note payments, IRS will allow the entire amount of your lease payments with no maximum limitation. You may even have the maximum allowable two car payments and one or more car lease payments. Don't ask me why, that's just the way they do it.

I personally will provide IRS with a detailed schedule that lists all car note payments and just the allowable portion of the monthly operating costs (not a detail of the monthly expenses). However, I usually will give IRS a copy of my clients' monthly or quarterly insurance premium. So here's what I put on line 37:

1. The car note payment for the first car limited to the maximum amount allowable below ($450)
2. The car note payment for the second car limited to the maximum amount allowable below ($326)
3. The operating costs (monthly expenses) from the table below