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Kerr County, Texas: Navigating IRS Wage Levy & Hardship Status

Last updated: May 29, 2026 · Sources: IRS.gov, HUD.gov, BLS.gov

Understanding IRS Collection Standards in Kerr County, TX

For taxpayers in Kerr County, Texas, facing IRS collection actions, understanding the IRS Collection Financial Standards is crucial. When assessing a taxpayer's ability to pay, the IRS uses Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to determine disposable income. This calculation relies on a combination of National and Local Standards. For a single individual in Kerr County, the National Standard for Food, Clothing, and Other Necessities is $812 per month, derived from Bureau of Labor Statistics (BLS) Consumer Expenditure Survey data. While specific IRS Local Housing & Utilities Standards are not provided for Kerr County, taxpayers must document their actual, necessary housing expenses. The IRS is mandated by Internal Revenue Code (IRC) §6343(a)(1)(D) to release a levy if it creates an economic hardship, meaning taxpayers cannot meet reasonable basic living expenses. These standards, published on IRS.gov, are compiled from various sources including the BLS and U.S. Census Bureau.

Kerr County Housing & Utilities Allowance vs. HUD Fair Market Rent

Unlike many areas, the IRS does not publish a specific Local Housing & Utilities Standard for Kerr County, Texas. This means taxpayers in Kerr County must provide detailed documentation of their actual, necessary housing and utility expenses to the IRS. For context, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in this area as $1140.0. If your actual housing costs exceed the general local allowances, Internal Revenue Manual (IRM) 5.15.1.10 allows for deviations from the standard amounts if justified by a taxpayer's unique circumstances. Presenting evidence that your rent, such as the HUD FMR of $1140.0, is reasonable and necessary for your household size can strengthen your case. Unfortunately, regional shelter Consumer Price Index (CPI) data from the Bureau of Labor Statistics is not available for this specific region to show year-over-year changes in housing costs.

Food, Healthcare & Transportation Allowances

Beyond housing, the IRS Collection Financial Standards provide specific allowances for other essential expenses. For Food, Clothing, and Other Necessities, the National Standards range from $812 per month for a single person to $1983 for a family of four, with an additional $357 for each additional person beyond four. These figures are based on the Bureau of Labor Statistics Consumer Expenditure Survey. Healthcare costs also have National Standards: $75 per person per month for those under 65, and $153 per person per month for those 65 and over, derived from the Medical Expenditure Panel Survey. For transportation in Kerr County, Texas, the IRS Local Standards allow for a combined monthly amount of $858 for one car (comprising $588 for ownership costs and $270 for operating costs), or $1446 for two cars ($1176 ownership + $270 operating), based on BLS data and American Automobile Association operating costs.

Qualifying for Currently Not Collectible (CNC) Status in Texas

Achieving Currently Not Collectible (CNC) status in Texas means the IRS has determined you lack the ability to pay your tax debt due to economic hardship. To qualify, you must submit IRS Form 433-A, Collection Information Statement, detailing your income, expenses, assets, and liabilities. The IRS will compare your total monthly income against your total allowable expenses, which include the National and Local Standards. For example, a single filer in Kerr County might demonstrate total allowable expenses including a documented housing cost of $1140.0 (based on HUD FMR for a 2BR), $812 for food, clothing, and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation. If your allowable expenses equal or exceed your income, leaving no disposable income, the IRS may place your account in CNC status under IRM 5.16.1. This status can lead to the release of an existing levy, as outlined in IRC §6343. Importantly, while CNC status pauses active collection, it does not extend the Collection Statute Expiration Date (CSED), which is generally 10 years from the assessment date under IRC §6502.

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Frequently Asked Questions

For Kerr County, Texas, the IRS currently does not publish a specific Local Housing & Utilities Standard in its Collection Financial Standards for 2025. This means that instead of a fixed allowance, taxpayers are expected to document and justify their actual, necessary housing and utility expenses to the IRS. For reference, the U.S. Department of Housing and Urban Development (HUD) reports the FY2025 Fair Market Rent (FMR) for a 2-bedroom unit in this area as $1140.0. When submitting Form 433-A, you would provide evidence of your actual rent or mortgage payments, property taxes, and utility costs, which the IRS Revenue Officer will evaluate for reasonableness based on your household size and local economic conditions.
To qualify for Currently Not Collectible (CNC) status in Texas, you must demonstrate to the IRS that you lack the financial ability to pay your tax debt without experiencing economic hardship. This process begins by accurately completing and submitting IRS Form 433-A, Collection Information Statement. On this form, you will detail your income, assets, and all monthly necessary living expenses, utilizing the IRS National and Local Standards. For instance, a single individual's allowable expenses would include $812 for food, clothing, and other necessities, $75 for healthcare (under 65), and $858 for one-car transportation. If your total allowable expenses, including your actual housing costs (e.g., a documented $1140.0 for a 2BR in Kerr County), are equal to or greater than your total monthly income, the IRS may classify your account as CNC under IRM 5.16.1.
If the IRS issues a wage levy (Form 668-W, Notice of Levy on Wages, Salary, and Other Income) in Kerr County, Texas, the amount taken from your paycheck is calculated based on specific exemptions outlined in IRS Publication 1494, Table for Figuring Amount Exempt from Levy. This is not a fixed percentage like some state garnishments. For 2025, a single individual with zero dependents has a monthly levy exemption of $1096.67. If that same single individual claims one dependent, their monthly exemption increases to $1680.0. The IRS will levy the amount of your net disposable earnings that exceeds this exemption. For example, if a single person with no dependents earns $3000 net per month, the IRS could levy $1903.33 ($3000 - $1096.67). This calculation aims to leave you with enough funds for basic living expenses.
Since the IRS does not provide a specific Local Housing & Utilities Standard for Kerr County, Texas, for 2025, you must demonstrate your actual, necessary housing expenses. If your documented rent, for example, aligns with or is below the HUD Fair Market Rent for the area (e.g., $1140.0 for a 2-bedroom unit), it is generally considered reasonable. If your actual housing costs exceed what a Revenue Officer might initially deem reasonable, you can request a deviation from the standard (or lack thereof) under IRM 5.15.1.10. To do so, you must provide compelling documentation and a detailed explanation demonstrating that your higher housing expense is necessary and reasonable for your circumstances, such as a large family, medical needs, or lack of affordable alternatives in Kerr County.
The IRS generally has 10 years to collect a tax debt, a period known as the Collection Statute Expiration Date (CSED). This 10-year period typically begins on the date the tax was assessed. This is established by Internal Revenue Code (IRC) §6502. Several actions can pause or extend this 10-year clock, including filing for bankruptcy, an Offer in Compromise (Form 656), or requesting a Collection Due Process (CDP) hearing. Importantly, if your account is placed in Currently Not Collectible (CNC) status, the 10-year CSED generally continues to run. While CNC status temporarily halts active collection efforts like wage levies (Form 668-W) and bank levies (Form 668-A), it does not typically extend the period the IRS has to collect, making it a strategic option for taxpayers nearing their CSED.

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