New meadian income

[325Falcon]

Where can one find the new state meanian income numbers that will go into effect in October? When in October will they go into effect?

[emaretta]

I read on the IRS website that October 1st the new Federal IRS expense guidelines are coming out, but have not seen any advanced viewing of the new numbers. So 5 more days...I'm hoping they are more accurate because they also polled consumers on their "real life" expenses and are adding a separate cell phone allowance separate from utilities. They're going to also give you the same amount for both cars because they lowered or removed the public transportation allowance.

[JasonK94Z]

This is new news to me. I'm filing Oct 2nd. Will my attorney know these numbers and use them?

[mysterie91]

The new figures go into affect October 15th - they can be found here http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm.

I stumbled across this info Monday evening.

[325Falcon]

For my state of NH it list

4 - person family as $87396 with a margin of error of +\- $3812

2 - Earner as $81729 with a margin of error of +\- $1654

Does anybody know what determines witch set of numbers are used?

We are a 4 person Family with 2 earners. The 4 person family numbers would be good for us but the 2 earner would be cutting it close.

How does the margin of error come into play?

[jennordhavn]

Good question Falcon, I don't quite understand it myself.

We are a 4 person family in California. The median is $74,801 +/- 868. But we only have one earner and that amount is $45,518. Which one would I use? Also, why do some states have way more margin of error? NH has $3812 something and CA only $868??? I'm confused. Does anyone understand this stuff?

[mysterie91]

Where are you seeing "margin of error" - when I pull up the tables I am not seeing this - can you direct me, please.

[JollyGG]

Good question Falcon, I don't quite understand it myself.

We are a 4 person family in California. The median is $74,801 +/- 868. But we only have one earner and that amount is $45,518. Which one would I use? Also, why do some states have way more margin of error? NH has $3812 something and CA only $868??? I'm confused. Does anyone understand this stuff?

the reason CA margin of error is smaller is due to their larger population size. The larger your sample pool the more accurate statistics you can get and therefore the smaller margin of error.

What margin of error means is that the average median income is X. Due to our stastical calculations that number could be wrong up to Y on either size.
So to take the example for california. The median income is 74, 801. In actually it could be 73,933 - 75,669.
Though for our purposes they will use 74,801 because what they are looking for is one median number not a range. So for our purpases the standard error or standard deviation is really not applicable.

[325Falcon]

Good answer JollieG.
Thanks!
Now what about the 2 earner or the 4 person Family?

[emaretta]

The new figures go into affect October 15th - they can be found here http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm.

I stumbled across this info Monday evening.

Thanks for the link!

You have got to be kidding me with this numbers right? For my county they're saying the allowance for housing and utilities is $581!!! I was paying more than than when I bought the house 3 years ago with a great credit score! And that's supposed to include utilties also? It's bad enough alone for mortgage. The number didn't change from last year. Especially here in Florida we've been hit so hard with the homeowner's insurance. When I first bought my house it was $800 and that was high. Now it's $3100 only in 3 years!

[lrprn]

Now what about the 2 earner or the 4 person Family?

If you have four persons in your household, then you use the 4-people family size income. Doesn't matter if only one of you works or both of you work. It's the family size living in the household that matters.

There are a few unusual situations that mess with this, but those don't happen to many folks (for example, if you have child in college who lives on campus much more than at home....some trustees have challenged whether the student can be included as a household member or not).

[325Falcon]

Thank you!

[twuoo]

exemptions?

Did any of the expemtions amounts increase as well?

[jennordhavn]

I think the new exemptions will be "published" by the IRS on October 1st (I remember reading that somewhere).

lrprn: Thanks for clarifying the 2 earner, 4 person family thing for me.