Means testing expenses for food

[anmartin31]

Can someone please help me with what the means testing allowance is for food for a family of 4 in Washington/Tacoma area. Right now we are a family of 3, I am due to have the baby in Sept so we will be a family of 4 when we file on Oct 1st. What else apart counts as an expense. My husbands prescriptions are around $50 a month and he has copays of $25 can that be used as an expense. This is what our expense list is like, if anyone can add anything else please do add to the list. We are surrendering our one and only car so for the filing we cant use the gas that we are buying or the car insurance per our lawyer.

Total income $2700
Mortgage $1456
Food $626 for a family of 3
Cable/internet $70
Electric $120
Water $25
Sewer $27
Trash $25
Phone $30
Cell $60
Prescription for husband $50/Copay $25
Life insurance $56
Home owners fees $25
Haircuts $40

[OhioFiler]

Try here first for help on your specific expenses: Expense Calculator

[bkmaggster]

You don't need to do the means test because your gross income is under the median of $6,870. Is the $2700 gross? Is it what you averaged over the last 6 months?

When you do your Schedule J (expense sheet) you can use the figures here as a guideline: http://www.irs.gov/businesses/small/...104825,00.html

From a budgeting standpoint, are you letting the house go or doing a loan mod? Your housing cost falls within the standards, but seems like a huge burden given your income.

Congrats on upcoming baby!

[whipster1]

Those numbers look fine, that is a huge house expense though. You are allowed to put in transportation expenses, like bus fares etc. even though you have no vehicle. Good luck

[anmartin31]

Thanks everyone. Sorry the $2700 was take home pay, the gross is around $3060 per month but we are still under. Our lawyer wants every penny accounted for.

[backtoschool]

House expense is huge, but it is what it is. The rest of the expenses are either in line with what is allowed or under what is allowed, so you are fine.

[LuciluS]

Where's your medical insurance costs? Is hubby the only one that has been to the doctor in the last 12 months and the only one who has received prescritions in the last 12 months. If you are unsure on the prescriptions, most pharmacy, large (Wal-Mart,WalGreens, Target - on line look up) or small (you sign a form and they will do a print out of prescriptons for the whole family. Any medical supplies purchased are deductible which includes OTC Meds, Band-Aids, Cough Syrup. Of course, you would need receipts to prove them.

Wow! your HOA fees are low! Have you had any type of assessment during the year. Do you pay personal property taxes? Had any Driver's Licenses paid during the last 12 months or for the next 12 months.

I would suggest you go through bank statements from Aug 1, 2008-Sept. 31,2009. I think you will find some other Justifiable expenses by going through your bank statement like any dues paid, subscriptons on magazines, etc.

Here is the National Standards on Food, etc:

http://www.irs.gov/businesses/small/article/0,,id=104627,00.html

A family of 4 shows $752 for food only. Look at the other columns and see if you are able to show a breakdown. As for the misc., I believe the Trustees might require receipts for that.

Here is a list of local standards for housing and utilities:

http://www.irs.gov/businesses/small/article/0,,id=104696,00.html

You will have to click on your State and county.

Good Luck and congratulations on the a Precious Baby coming.

Luci

Are you planning on being a Stay-At-Home Mom? If not, you need to figure in daycare costs for the New Baby.

[JRScott]

Medical expenses are allowed.

Depending on your area I agree with other commentors that really speaking the home is to much of a percent of your income, I would not reaffirm it even if you choose to stay, that way you have the option to walk away later.

[anmartin31]

The mortgage includes Escrow. Our mortgage was $1980 before we got the loan mod done, I know its insane. We could rent a home for around the same price though, Washington state has some of the highest house prices and rental prices.
I am on state medical thankfully so I dont have any medical expenses from the pregnancy. I am going to be a stay at home mom for at least the next year or so. I just got laid off and I am waiting to apply for unemployement after we file for CH7, I dont want to be forced into a CH13 due to the extra money from unemployment.

[bkmaggster]

The mortgage includes Escrow. Our mortgage was $1980 before we got the loan mod done, I know its insane. We could rent a home for around the same price though, Washington state has some of the highest house prices and rental prices.
I am on state medical thankfully so I dont have any medical expenses from the pregnancy. I am going to be a stay at home mom for at least the next year or so. I just got laid off and I am waiting to apply for unemployement after we file for CH7, I dont want to be forced into a CH13 due to the extra money from unemployment.

Please look into how much you would receive on UI, you are so far below the median that UI would probably not be a problem for you. You would still qualify for a 7. Then you just need to add in expenses like Lucilu is talking about for your schedule J.

You could probably rent a 3-bed apt in Tacoma for ~$1000, rent prices have gone way down in this economy, and Tacoma prices are cheaper than Seattle.