Offer in Compromise Calculator

An illustration of what the IRS collection formula counts, using published rules. Not a determination or a settlement quote.

Your worksheet

Start with your situation

No estimate is calculated here. These answers help you choose a starting point.

Total IRS debt

State

Are all required returns filed?

Could you pay the full balance within 180 days?

Complete the four answers to prepare your worksheet.

What the full worksheet asks for

Most recent tax return
Pay stubs or profit-and-loss statement
Vehicle values and loan balances
Home value and mortgage balance
Bank and retirement statements
Monthly bills

Allow about 20–30 minutes with records ready. Gathering missing records may take longer.

Your figures stay in this page's memory. They are not sent to us or included in a shared link. Privacy.

1. Household and location

Total IRS debt

Use the combined balance for the tax debts you are reviewing, including listed tax, penalties and interest.

Use the combined balance for the tax debts you are reviewing, including listed tax, penalties and interest. Check your notice or IRS account. Do not include state tax or private debt.

Household size

Use the household members counted under Form 433-A (OIC).

Use the household members counted under Form 433-A (OIC). Shared households and people who are not your tax dependents may need individual review; do not automatically count every person at the address.

People age 65 or older

Count only members included in the household size.

Count only members included in the household size. This selects the separate out-of-pocket healthcare amount.

State

Choose where you live.

Choose where you live. Alaska and Hawaii use separate low-income tables.

County or county equivalent

Select where you actually live, then confirm the county.

Is this the county where you live?

The selection is a lookup, not verification of your address.

Is this a joint offer?

Indicate whether both spouses are submitting a joint offer.

Indicate whether both spouses are submitting a joint offer. Being married or having two people in the household does not by itself establish a joint offer. This matters for the second vehicle exclusion.

AGI from your most recently filed individual return

Use the AGI on the most recently filed federal income tax return specified by Form 656; do not substitute an unfiled year.

Use the AGI on the most recently filed federal income tax return specified by Form 656; do not substitute an unfiled year. This is one low-income certification test, separate from monthly cash flow. Select unknown if you cannot verify it. Leave blank if unknown.

2. Monthly income and expenses

Gross monthly wages and salary

Enter average gross monthly pay before deductions.

Enter average gross monthly pay before deductions. Enter allowable taxes and health insurance separately so they are not counted twice.

Monthly net self-employment income

Enter monthly net business income after ordinary business expenses, before personal living expenses, with noncash deductions added back as Form 433-A (OIC) directs.

Enter monthly net business income after ordinary business expenses, before personal living expenses, with noncash deductions added back as Form 433-A (OIC) directs. Do not enter gross sales or deduct the same expense twice.

Monthly pension or Social Security

Enter each income source separately as requested on Form 433-A (OIC).

Enter each income source separately as requested on Form 433-A (OIC). Use an average that reflects your current situation; irregular or restricted income may need review.

Other monthly income

Enter each income source separately as requested on Form 433-A (OIC).

Enter each income source separately as requested on Form 433-A (OIC). Use an average that reflects your current situation; irregular or restricted income may need review.

Housing and utilities actual costs

Enter the combined monthly costs covered by the housing category, such as rent or mortgage, utilities, property tax and insurance.

Enter the combined monthly costs covered by the housing category, such as rent or mortgage, utilities, property tax and insurance. Do not count an amount again elsewhere.

Vehicle operating costs

Enter actual monthly insurance, fuel, maintenance and other included operating costs for the vehicles used.

Enter actual monthly insurance, fuel, maintenance and other included operating costs for the vehicles used. The confirmed county determines the applicable region or metropolitan standard.

Necessary public transportation costs

Enter the documented monthly amount or balance.

Enter the documented monthly amount or balance. Enter zero if none.

Health insurance

Enter monthly premiums you actually pay and have not already deducted elsewhere in this worksheet.

Taxes withheld and current taxes

Enter the monthly amount needed for current federal, state and local taxes, using pay records or current estimated payments.

Enter the monthly amount needed for current federal, state and local taxes, using pay records or current estimated payments. Back-tax payments belong elsewhere.

Court-ordered payments

Enter required monthly payments, such as child support or alimony, that you actually pay.

Enter required monthly payments, such as child support or alimony, that you actually pay. Keep the order and payment records.

Child or dependent care

Enter necessary monthly care costs.

Enter necessary monthly care costs. The IRS may ask why the care is needed and for payment records.

Term life insurance

Enter monthly term-life premiums.

Enter monthly term-life premiums. Cash-value life insurance needs a separate asset review; a premium field cannot measure its cash surrender value.

Other secured debt payments

Describe and document the expense when discussing an offer with the IRS.

Describe and document the expense when discussing an offer with the IRS. A payment being secured does not automatically make it allowable. Unsupported categories cannot be silently deducted.

Are these necessary expenses, without double counting?

Only supported necessary expenses are included.

Only supported necessary expenses are included. Unsecured debt, voluntary retirement contributions and already-counted expenses are not added.

3. Assets and vehicles

Vehicles used by your household

Up to two.

Up to two. Vehicle equity and monthly costs have different rules.

Home market value

Enter the supported current property value and the ownership facts required by the form.

Enter the supported current property value and the ownership facts required by the form. Do not use an unexplained partial share against the entire property loan. Renting means no home asset here; your rent still belongs in housing expenses.

Mortgage balance

Enter secured debt against that property.

Enter secured debt against that property. Joint ownership, multiple liens or disputed value need review.

Bank balances

Enter cash and bank amounts in the categories requested by Form 433-A (OIC), separately from investments.

Enter cash and bank amounts in the categories requested by Form 433-A (OIC), separately from investments. The bank adjustment is conditional; it is not a blanket reduction for every account.

Investment balances

Enter current nonretirement investments separately.

Enter current nonretirement investments separately. Loans, taxes or access restrictions may change their treatment.

Investment loan

Enter only the debt associated with that investment under the form's instructions.

Enter only the debt associated with that investment under the form's instructions. Do not subtract unrelated unsecured debt.

Retirement balances

A gross account statement alone may be insufficient.

A gross account statement alone may be insufficient. Accessible value, account loans and applicable withdrawal taxes or penalties must follow the retirement rule; unknown required details block that asset calculation.

Retirement account loan

Enter the documented monthly amount or balance.

Enter the documented monthly amount or balance. Enter zero if none.

Life-insurance cash surrender value

Enter the documented monthly amount or balance.

Enter the documented monthly amount or balance. Enter zero if none.

Life-insurance policy loan

Enter the documented monthly amount or balance.

Enter the documented monthly amount or balance. Enter zero if none.

Eligible personal-effects market value

Enter the documented monthly amount or balance.

Enter the documented monthly amount or balance. Enter zero if none.

Loan on those personal effects

Enter the documented monthly amount or balance.

Enter the documented monthly amount or balance. Enter zero if none.

Does the ordinary retirement form convention apply?

For a nonzero account: accessible, no larger documented withdrawal adjustment, and not counted as necessary retirement income.

For a nonzero account: accessible, no larger documented withdrawal adjustment, and not counted as necessary retirement income. Otherwise that asset needs review.

4. Confirm your situation

Are all listed assets entirely attributable to the people liable in this offer?

Shared ownership or a nonliable co-owner needs individual review.

Is all entered household income attributable to those liable participants?

Nonliable household contributions and shared expense allocations need individual review.

Are there no business assets or business interests to evaluate?

Net self-employment income alone does not account for business equity.

Are there no unusual liens or secured-claim priority issues?

Special secured claims require a separate factual review.

Are you using the ordinary expense rules without requesting an exception?

This worksheet cannot approve a documented expense deviation.

Do you understand this is a conditional worksheet illustration?

The IRS must separately consider full payment within the collection period.

The IRS must separately consider full payment within the collection period. This worksheet does not make that decision.

Payment type

Choose a lump-sum offer payable in five or fewer months after acceptance, or periodic payments completed within the permitted period of up to 24 months.

Choose a lump-sum offer payable in five or fewer months after acceptance, or periodic payments completed within the permitted period of up to 24 months. The future-income multipliers differ from the number of payments you might make.

ZIP crosswalk: 2026 Q2; not confirmed latest. About the data. Data version 2026.10. IRS published information last checked 2026-10-06.

Before you begin

An offer in compromise is a request to settle a tax debt for less than its full amount. The IRS reviews your circumstances and documents. Filing requirements, estimated payments, bankruptcy and other conditions matter even when a worksheet shows a small number. Start with the current Form 656-B booklet and IRS offer information.

Low-income note

Form 656 permits low-income certification using either AGI from the most recently filed federal return or current monthly household income multiplied by 12 against its applicable table. This worksheet shows which supplied test meets the published threshold and which remains unknown. Alaska and Hawaii use separate tables. Meeting a test may remove the application fee, initial payment and payments while the IRS reviews the offer; it does not settle the debt or establish that an offer will be accepted. Use the current Form 656-B.

DIY and when to get help

You can gather your own records and use the IRS's offer tools and Form 656-B. Consider an enrolled agent, CPA, tax attorney or Low Income Taxpayer Clinic before applying if you have a business, unusual assets, disputed tax, an approaching collection deadline or expenses above the standards. Review the provider's qualifications and fees.

DIY links

Questions you may have

Does this tell me what the IRS will accept?

No. It illustrates published worksheet rules using your entries. An actual offer requires an application, supporting records and IRS review. A displayed amount is not a settlement quote.

Is an offer just a percentage of my debt?

No. The IRS considers ability to pay, including assets, income and allowable expenses. A percentage discount chosen without those facts is not this worksheet's method. IRS offer overview

Can I use this if I rent or have a paid-off car?

Yes, where the relevant rules and inputs are verified. A renter has no home asset merely from paying rent. A paid-off car can have asset equity and operating expenses but no loan-payment allowance. Form 433-A (OIC)

Does a zero-income result mean collection stops?

No. Only the IRS can decide whether to delay collection. It can request documents about income, expenses and assets. Read the currently not collectible guide before discussing hardship with the IRS.

What does it cost to apply?

The published application fee is $205, with an initial payment determined by the offer's payment option. Low-income certification can change those payment requirements. Review the current form before submitting anything. IRS application instructions

Do I need to hire someone?

Not necessarily. You can use the IRS's own resources. Get individualized help when the facts or deadlines are difficult, and compare professional fees with the work you need. Paying a provider does not secure IRS acceptance.

Offer in Compromise Calculator

Your worksheet

Start with your situation

Vehicle 1

Vehicle 2

Before you begin

Low-income note

DIY and when to get help

DIY links

Questions you may have