Form 13424-J – LITC Budget Worksheet & Narrative Guide

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A clinic had its case data and impact story locked, then submitted a Form 13424-J where the salary lines pointed to two staff attorneys while the personnel narrative described three. Reviewers flagged the mismatch inside an hour, and the package went back for clarification with two weeks left on the deadline.

That gap between the numbers and the words is where most 13424-J rework happens. The form is the LITC Detailed Budget Worksheet and Narrative Explanations under OMB Control No. 1545-1648, pairing a line-item budget with a written justification of each cost. The current PDF shows Rev. 5-2018, and for the 2026 cycle applicants had to submit through the LITC Grants Portal with Id.me authentication, not email or paper.

Key Takeaways

• Form 13424-J is the LITC Detailed Budget Worksheet and Narrative Explanations under OMB Control No. 1545‑1648, used to justify personnel and nonpersonnel costs for your grant.
• The current IRS PDF shows Rev. 5‑2018 and remains the operative budget instrument. Download it directly from IRS.gov and align your numbers to Publication 3319.
• For the 2026 cycle, the IRS required applicants to submit via the LITC Grants Portal with Id.me authentication. Do not assume email or paper is acceptable.
• In 2025, OMB approved a revision to the LITC collection. Several legacy reporting forms were removed and consolidated, while 13424‑J remains in use, labeled Modified under IC ID 246980.
• Reviewers look for clear math tied to activities, documented rates, and support that proves allowability, allocability, and reasonableness. Treat your worksheet as evidence, not prose.

What Form 13424-J Is, And Why It Matters

Form 13424‑J is the budget heart of your LITC application. You list personnel, fringe, travel, equipment, supplies, contractual, and indirect costs, then you back them up with a short justification that shows how each line fuels representation, education, and outreach. Because this collection sits under OMB Control No. 1545‑1648, you are expected to complete it to obtain or retain benefits, and to keep your documentation audit‑ready.

• The official IRS file for Form 13424‑J is posted as Rev. 5‑2018, and that is still the version clinics use in practice. When in doubt, pull the PDF from IRS.gov rather than third‑party form libraries.
• Publication 3319 is the program’s playbook. It explains eligibility, matching rules, and the standards that your budget must reflect, and it is linked from the Taxpayer Advocate Service’s LITC Grants page.

Where 13424‑J Fits In The 2026 Application

For the 2026 year of award, the IRS opened applications on May 15, 2025 and closed at 11:59 p.m. ET on July 14, 2025. The period of performance runs January 1, 2026 through December 31, 2026. Your budget narrative sits alongside your program narrative and required uploads in the Grants Portal, which uses Id.me to authenticate your organization.

How Reviewers Read Your Budget

Think like a reviewer with one question in mind, can I trace each cost to a service at a reasonable unit rate?

• Start with people. Give titles, annual salary bases, FTE or percent effort, hourly conversions if helpful, and fringe rate basis.
• Move to operating lines. Show unit cost times quantity, and tie every item to a deliverable, for example, client miles for outreach trips, or printing for ESL education materials.
• Close with indirects. State your approved rate and base, or cite the de minimis 10 percent if eligible, and attach your rate agreement if you have one.
• Label support. Payroll policy, quotes, prior invoices, and allocation policies should be referenced in the narrative so reviewers can find them fast.

Here is a quick example of quantifiable detail that speeds review.

Element	Quantifiable Example
Attorney time	0.50 FTE, 1,040 hours
Paralegal	600 hours at 28 per hour
Fringe rate	24% covering FICA and health
Outreach events	12 events at 150 each
Travel	800 miles at the current standard rate

If the math tells the story, the prose can stay short, and your reviewers will thank you.

2025 OMB Update, What Changed And What Did Not

In June 2025, OMB recorded a revision to the LITC information collection. The Taxpayer Advocate Service reduced burden by consolidating several forms and introducing a new Form 13424‑R for interim and year‑end reporting. Crucially, 13424‑J remains and is listed as Modified under IC ID 246980, which confirms it is still part of the approved package clinics rely on for budgeting.

• Why you care, the consolidation affects reporting down the road, not your initial budget build inside 13424‑J.
• Practical takeaway, keep using the IRS Rev. 5‑2018 PDF for your worksheet and narrative, and follow Publication 3319 for structure.

Electronic Submission Is The Norm

For the 2026 grant year, TAS directed applicants to submit electronically through the LITC Grants Portal. That page also links to Publication 3319 and points to reminders for completing Form 13424‑M. If your team is still emailing drafts around, move your working files to a simple folder structure and lock a single “application master” to avoid version sprawl before you upload.

Step‑By‑Step, How To Complete Form 13424‑J Without Rework

You do not need fancy software to make this form shine. You need clean math, named attachments, and direct links from costs to services. Use this flow when building your Detailed Budget Worksheet, then mirror the same order in your narrative so a reviewer can follow your trail in minutes.

Step 1, Lock Your Staffing Model

• List each position with title, annual salary base, and percent effort or FTE.
• Convert to hours if that makes the math clearer, for example, 0.50 FTE at 2,080 hours equals 1,040 grant hours.
• State who does what, for example, case representation, intake, ESL education, outreach.

Pro tip, if two part‑timers share a role, show each line separately. Shared roles are fine, hidden math is not.

Step 2, Pin Down Fringe

• Write the fringe rate and what it covers, for example, FICA, health, retirement.
• If your organization uses a pooled benefits method, cite the policy or rate sheet.
• If your rate is variable by class, list the actual rate for each position.

Step 3, Map Nonpersonnel To Deliverables

Use unit cost times quantity and connect each line to a concrete output.

• Travel, miles or trips, who is traveling, and why, for example, outreach, education, or client meetings.
• Supplies, printing, postage, case files, ESL materials, or intake packets.
• Equipment, list useful life, purpose, and show why it supports grant services.
• Contractual, translation, interpretation, tax prep support, or specialized trainings.

Step 4, State Your Indirect Cost Method

• If you have a negotiated federal rate, list the rate, the base, and the agreement date.
• If you use the 10 percent de minimis, say so and define the base.
• Keep the base consistent with your organization’s policy across grants.

Step 5, Tie It All To Services In The Narrative

For each worksheet section, write two or three sentences that answer who, what, how much, and why it matters for clients. Keep your sentences short and pack the numbers up front.

Sample Narrative Snippet You Can Reuse

Personnel, The Staff Attorney will devote 0.50 FTE, 1,040 hours, to case representation and education. The annual salary is 78,000, so the grant requests 39,000 for salary. Fringe is 24 percent, based on our HR policy, which covers FICA and health, for 9,360. This position will handle an estimated 85 representation cases and 6 ESL sessions.

Documentation, What To Attach And How To Label It

Your goal is traceability. A reviewer should be able to see a number in the worksheet, find the same number in the narrative, and open a labeled attachment that proves it.

Build A Simple Attachment Index

• Attachment P‑1, Payroll policy and salary schedule
• Attachment F‑1, Fringe rate memo and breakout
• Attachment T‑1, Travel map with mileage assumptions
• Attachment S‑1, Quotes for supplies and printing
• Attachment C‑1, Contracted services scope and price
• Attachment I‑1, Indirect rate agreement or de minimis statement

Turn Your Numbers Into Evidence

• Salaries, show base pay by role or a redacted payroll extract.
• Fringe, attach a one‑page memo with math that sums to your rate.
• Travel, show route examples and mileage, then the per‑mile rate you used.
• Quotes, save PDFs or screenshots with dates and vendor names.
• Indirects, attach the official rate letter or a one‑paragraph policy for de minimis.

Allocation For Shared Costs

If you split rent, phones, or software across programs, write the rule and stick to it.

• Square footage for space,
• Headcount for phones,
• User licenses for software.

If your rule changed from last year, add one sentence that explains why. Consistency builds trust, and a clear reason prevents back‑and‑forth.

The Numbers Reviewers Double‑Check First

• Salary math that does not match the FTE, for example, 0.40 FTE applied to the wrong annual base.
• Fringe percentages that do not match the attached memo.
• Travel lines without a tie to outreach or education goals.
• Contractual services that look like subawards, but are treated as simple vendors.
• Indirect rates applied to the wrong base.

Quick Self‑Audit Table

Check	What To Verify	Fix If Needed
FTE math	Salary x FTE equals request	Recompute with 2,080 hours or your HR standard
Fringe	Narrative rate equals attachment	Update memo or worksheet to match
Travel	Unit cost x quantity traced to events	Add miles, trips, or event counts
Contractual	Vendor vs subrecipient decision	Add scope and oversight language
Indirects	Rate and base are consistent	Correct the base or attach rate letter

Turn The Worksheet Into Outputs And Outcomes

Make it obvious what the clinic will produce with the budget you are requesting. Add a small tally to your narrative that ties the biggest lines to services.

• 1,040 attorney hours, 85 representation cases resolved or advanced
• 600 paralegal hours, intake, document prep, scheduling
• 12 outreach events, 240 attendees, bilingual materials
• 6 ESL education sessions, 120 learners, pre and post knowledge checks

When your numbers read like a plan, reviewers see a clinic that will deliver, not guess.

Eligible And Ineligible Costs For Form 13424‑J

You will strengthen your budget by separating what is clearly allowable from what is not. Keep your list tight and tie every line to outreach, education, or representation. If a cost does not support those services, it probably does not belong in your request.

Quick Eligibility Checklist

• Is the cost necessary for representation, education, or outreach to eligible taxpayers?
• Can you allocate it to the grant using a consistent, written method?
• Do you have documentation, quotes, or policies to back it up?
• Would a reviewer find the amount reasonable for the result you promise?

Category	Eligible Examples	Ineligible Examples	Notes For Your Narrative
Personnel	Staff attorney time, paralegal support, clinic coordinator	Organization‑wide admin salaries not tied to LITC	Show FTE, hours, and tasks tied to services
Fringe	FICA, health, retirement per policy	Undefined “benefits” with no basis	Attach your rate memo or policy
Travel	Client meetings, outreach events, education sessions	General staff retreats, unrelated conferences	Show miles or trips and purpose
Supplies	ESL materials, printing for outreach, case files	Swag, unrelated promotional items	Include unit cost times quantity
Equipment	Laptops used by clinic staff, secure scanners	Luxury items, nonessential upgrades	Add useful life and justification
Contractual	Interpreters, specialized legal support, tax prep services	Lobbying, political activity	Describe scope and oversight
Indirect	Negotiated rate or de minimis 10 percent	“Catch‑all” overhead without a base	State the base and keep it consistent

If you find yourself stretching a rationale, park that line in your match budget or remove it. A clean request reviews faster than a creative one.

How To Access And Download The Current Form

Start with the official PDF so your worksheet and page references match what reviewers expect. Third‑party libraries can be helpful for drafts, but always reconcile to the IRS version before you finalize.

Download Steps

• Go to IRS.gov and search for “Form 13424‑J.”
• Open the PDF labeled “Detailed Budget Worksheet and Narrative Explanations.”
• Save it to your shared drive and lock a “master” copy for your team.
• If you prefer editing in Word for early drafts, convert once for collaboration, then return to the official PDF for final entry so formatting stays intact.

Version Control Tips

• Add the year and version to your file name, for example, “13424‑J_ClinicName_2026_Master.pdf.”
• Keep one working folder with subfolders that mirror your attachment labels, for example, P‑1, F‑1, T‑1.
• Log any mid‑draft changes to salaries, rates, or quantities in a one‑page change sheet so your math tells the same story across the worksheet, narrative, and attachments.

Electronic Submission, What To Expect

Most clinics now submit through the LITC Grants Portal. Plan for the portal, not email, and set a mini‑deadline one week early to prevent last‑minute scrambles.

Portal Prep Checklist

• Confirm your organization’s account and user roles early, including Id.me access.
• Test a dummy upload a week ahead so you know the file size and accepted formats.
• Export your budget narrative to a clean PDF and verify all attachment names match your labels.
• Keep a one‑page index with hyperlinks to each attachment. Reviewers love quick access.

Hand‑Off To Your Approver

Give your executive or fiscal approver a small package, not a pile. Include the final 13424‑J, the narrative, the attachment index, and a two‑minute summary of the totals. Ask for a single thumbs‑up on numbers and signatures. Clear, short hand‑offs keep your timeline on track.

Common Pitfalls And How To Avoid Them

• Totals in the worksheet that do not match totals in the narrative. Fix by building from a single source of numbers, then paste values, not formulas, into your final.
• Mileage without a route or event plan. Fix by listing the specific trips or a standard outreach pattern and the per‑mile rate you used.
• Contractual lines that look like subawards. Fix by stating deliverables, oversight, and payment terms, and by confirming it is a vendor relationship.
• Indirect applied to ineligible bases. Fix by clearly stating the base and applying the rate only to the allowable pool.

A Simple Review Flow For Your Team

• Budget owner completes the worksheet and narrative, adds labels to every attachment.
• A second staffer checks math, rates, and attachment names.
• A program lead validates that lines tie to outreach, education, and representation.
• Your fiscal lead confirms policy alignment for fringe, indirects, and allocations.

Two pairs of eyes are cheaper than a rejected application. Schedule a one‑hour review meeting, then lock the files the same day.

Turning The Budget Into A Story Your Board Can Back

Your board or executive team wants to know two things, how much, and what you will deliver. Add a one‑page summary that lists total request, total match, and three to five outputs. Keep it visual and concrete, for example, cases closed, events delivered, learners reached, languages served. When funding, leadership, and staff see the same numbers, program execution gets easier in January.

A Ready‑To‑Use Budget Narrative Outline For Form 13424‑J

Use this outline to draft your narrative in under an hour. Keep sentences short, make your math visible, and point to labeled attachments so reviewers can verify quickly.

Section A, Personnel

• Roles and effort, list each position, FTE or hours, and the tasks tied to representation, education, or outreach.
• Salary math, show base pay and the share requested, for example, 0.50 FTE of 78,000 equals 39,000.
• Output link, estimate the service units tied to the role, for example, 85 cases, 6 ESL sessions.
• Attachment, reference P‑1 for salary policy or redacted payroll extract.

Section B, Fringe Benefits

• Rate basis, state the percentage and components, for example, 24% for FICA and health.
• Method, explain pooled or position‑based calculations.
• Attachment, reference F‑1 with the rate memo and calculation.

Section C, Travel

• Purpose, tie trips to outreach, education, or client meetings.
• Calculations, list miles x rate or trips x cost, and who is traveling.
• Attachment, reference T‑1 with route examples and event calendar.

Section D, Equipment and Supplies

• Equipment, describe use, useful life, and direct link to services.
• Supplies, give unit cost times quantity for printing, postage, ESL materials, and case files.
• Attachment, reference S‑1 with quotes or past invoices.

Section E, Contractual

• Scope, define deliverables, oversight, and payment terms.
• Decision, state why this is a vendor, not a subrecipient.
• Attachment, reference C‑1 with the scope and price.

Section F, Indirect Costs

• Method, negotiated rate with base, or de minimis 10%.
• Consistency, confirm you apply the same base across grants.
• Attachment, reference I‑1 for the rate letter or a one‑paragraph de minimis policy.

Keep each subsection to two or three tight sentences plus one line of math. The worksheet should mirror the same order so reviewers can trace numbers in seconds.

Self‑Audit, A Final 12‑Point Check Before You Upload

• Every worksheet total matches the narrative total.
• Each number in the narrative points to a labeled attachment.
• FTEs and hours match your HR standard year, usually 2,080 hours.
• Fringe rates in the worksheet equal the memo in F‑1.
• Travel lines include miles, rate, and purpose.
• Contractual items have scopes and oversight, not just names and prices.
• Indirect rate and base match your agreement or de minimis statement.
• Shared costs use a written allocation rule, for example, square footage or license count.
• Nonfederal match is labeled and valued with support.
• Prior‑year variances are explained in one sentence.
• File names include year and version, for example, 13424‑J_Clinic_2026_Master.pdf.
• The portal upload order matches your narrative order.

When You Need Extra Hands And Discipline

If your clinic is buried in production or your accounting team is stretched during peak season, tightening your budget build can feel impossible. This is where disciplined delivery helps. At Accountably, we integrate trained offshore teams into existing workflows, use standardized workpapers, and build named attachments that reviewers can verify quickly. If you want help creating SOPs for your budget build, organizing your evidence, or preparing year‑round support that keeps your 13424‑J clean, we can share templates and a simple review cadence. No resume stacks, no one‑off fixes, just a structured way to finish the work without adding chaos.

Example, A Short Personnel Narrative You Can Copy

Personnel, The Clinic Coordinator will devote 0.60 FTE, 1,248 hours, to intake, scheduling, and document management. Annual salary is 52,000, grant request is 31,200. Fringe at 22% is 6,864, based on our HR memo F‑1. This role supports 300 intakes and 12 outreach sessions by maintaining case files and event logistics.

Closing Thoughts

You do not need a perfect budget. You need a budget that a reviewer can verify without hunting for numbers. Put your calculations up front, attach proof, and tie every line to outreach, education, or representation. That is what wins trust and keeps your clinic funded.

If you want a second set of eyes or a ready‑made SOP, reach out. We are happy to share a fillable 13424‑J template, a one‑page attachment index, and a math checker you can use before you upload. Your team saves time, your reviewers save clicks, and your clients get support without delays.

Common Mistakes We See Every Season

Most rework on Form 13424-J traces back to a short list of patterns: budget figures that drift from the narrative, eligibility assumptions that do not match IRS Publication 3319, or documentation that arrives too late to support the application package.

Reusable Checklists

These checklists are copy-paste ready for your clinic's SOP folder or grant-application binder. Each one maps to a specific Form 13424-J workflow stage so the same review steps run every cycle.

Keep 13424-J Season From Stalling

LITC grant cycles run on tight federal timelines, and Form 13424-J sits at the center of the budget package. The 2026 LITC Grant Application Package (IRS Publication 3319, Rev. 5-2025) defines the worksheet structure, eligible costs, and submission requirements that reviewers use to score applications, and the package window does not flex for late budget corrections.

When applications stall, the cause is rarely the underlying clinic work. It is usually a process gap: budget categories drafted without a clear pricing basis, narrative paragraphs written before the worksheet locks, or matching-funds documentation requested too late to assemble cleanly. Tightening the workflow around Form 13424-J removes most of that friction before it reaches reviewers.

• Build the worksheet first, narrative second. Lock every line item on Form 13424-J before any descriptive paragraph is drafted.
• Maintain a running eligibility log against IRS Publication 3319 categories so every budget line cites the section that supports its inclusion.
• Stage matching-funds documentation in a labeled folder. Commitment letters, board approvals, and in-kind valuations live next to the worksheet line they support.
• Schedule two internal review passes – a numbers review and a narrative reconciliation review – before the package goes to the principal investigator for sign-off.
• Run a Grants.gov dry-run upload at least 72 hours before the published deadline and confirm file formats and attachment counts are clean.

This kind of multi-step file discipline (worksheet locked first, narrative reconciled against numbers, matching documentation staged before review) is the same review architecture we layer into client tax workflows every cycle. If your clinic or firm wants the worksheet, narrative, and submission process running on a documented review checklist, our tax preparation and review team can support the numbers and documentation reconciliation alongside your internal grant lead.

FAQs

Do I have to use hours or FTE in the narrative?

Use whichever makes the math easiest to verify. Many reviewers like to see both. If you show FTE, add the hour conversion so case volumes make sense. Keep the same convention across the document.

How detailed should mileage calculations be?

Provide enough detail to confirm reasonableness. A list of recurring routes or event locations with total miles works well. For unique trips, include a simple note with distance and purpose.

What if my fringe rate changes midyear?

Document the approved change, apply it prospectively, and keep the memo with your attachments. Explain the variance in a one‑sentence note in your next report or amendment so totals reconcile.

Can I budget stipends for volunteers or law students?

Yes, if your organization policy allows it and the stipends directly support LITC services. Show unit rate times hours or months, and attach the policy or prior practice as support.

How do I decide between a contractor and a subrecipient?

If the partner performs programmatic work with performance goals and decision‑making, that is usually a subrecipient. If they deliver a defined service at a set price with your oversight, that is a vendor. Describe the relationship plainly in the contractual section.

Do I include nonfederal match on 13424‑J?

Include match if the program year requires it and your local funding or in‑kind support is confirmed. List sources, valuation, and timing, and attach letters or internal valuation worksheets.

Can I apply indirects to all line items?

No. Apply your negotiated rate or de minimis to the approved base only. State the base in your narrative and show the calculation so a reviewer can recompute in one step.

What is the fastest way to reduce review comments?

Make math visible, label attachments, and keep your narrative in the same order as the worksheet. Add one line that ties each major cost to a service target. Consistency cuts questions.