Form 13977 – VITA Grant Budget Plan Guide for 2025

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The Form 13977 packets that stall are rarely the ones with bad arithmetic. They are the ones where the awarded amount comes in under the request and a cap that cleared at the higher figure quietly breaks at the lower one. FEAB on Line 9 is held at or under 10% of the federal award, and when the federal award shrinks, that ceiling moves with it whether anyone redoes the math or not.

This is the VITA Grant Budget Plan, 15 numbered lines with Line 12 summing Lines 1 through 11, and the caps are where reviewers focus. Laptops sit at $1,000 per unit on Line 5, indirect costs run through the 10% de minimis or your NICRA and can never be used as match, and at least 90% of the population you serve has to meet EITC income limits. Miss the full match support at application and you have 20 days from the award notice to send it, a window that gets short fast when the awarded figure changes the numbers underneath it.

Key Takeaways

• The period of performance runs from October 1 to September 30. Charge only costs inside that window.
• If you do not upload full match support with your application, you must submit complete matching documentation within 20 days of the award notice.
• Financial Education and Asset Building, FEAB, is allowable, keep total FEAB at or under 10% of the federal award, and label those lines.
• Indirect costs, use your NICRA or elect the 10% de minimis on MTDC, then show the choice on Form 13977 and apply it consistently. Indirects cannot be used as match.
• The IRS validates production in its systems, you are expected to meet your Minimum Federal Returns Expected, MRE, and to serve a population where at least 90% meet EITC income limits.

What Form 13977 Is, And Why It Matters

Form 13977 is the VITA Grant Budget Plan. You use it to itemize personnel, fringe, travel, equipment, supplies, contractual, other, and indirect costs, then tie those dollars to verified returns. Treat it as a blueprint. Your totals must align with SF‑424 and Form 14335, and your SPEC sponsor agreement, Form 13533, must be current. All applications go through Grants.gov, so you should confirm registration before the window opens.

The calendar you must plan around

The IRS posts the application window and performance year on the VITA and TCE grants page. Expect May 1 to May 31 for applications, decisions near October 1, and a one‑year period of performance running October 1 to September 30. Build your staffing and procurement to that rhythm so you do not request reimbursement for out‑of‑period costs.

Build A Budget Reviewers Can Approve

I have seen strong applicants do three things right. First, they show how each dollar supports return preparation, quality, and e‑file throughput. Second, they prove match early so funding is not delayed. Third, they keep the math consistent across every form. You can do the same by following the structure below, and by referencing the current publication set as you go.

The categories you will complete on 13977

• Personnel, list titles, hourly rates or salaries, percent effort, and totals for the October 1 to September 30 year (federal funds may only pay specific VITA roles such as program coordinator, site coordinator, quality reviewer, FEAB coordinator, and IT support – federal funds may not be paid to individuals for screening or preparing tax returns, which is a volunteer activity).
• Fringe, document actual employer costs or apply an approved fringe rate (report fringe on Line 3 only – do not bundle fringe into Line 1 personnel or into contractual amounts).
• Travel, tie to training, site setup, or coordination that supports return goals.
• Equipment and supplies, specify quantities, quotes, and how each item helps you hit your MRE.
• Contractual, define scopes and fees that directly expand site capacity.
• Other, include allowable items like publicity and limited volunteer food within the program’s limits.
• Indirect, cite NICRA or elect 10% de minimis on MTDC, and calculate properly.

Make your narrative do real work

Your narrative should connect budget lines to outcomes. Explain how training hours, quality reviews, and e‑file throughput lift accuracy and reduce cost per return. Call out FEAB activities, show counts and audiences, and keep the FEAB subtotal at or below 10%. Close with a simple chart that ties site hours to the MRE in your agreement so reviewers see the throughput logic.

Matching Funds, What Counts And How To Prove It

You need real, documented match. Cash, third‑party in‑kind, and specific federal exceptions can count, but only with the right support. If you do not submit full match at application, you have 20 days from the date on the award notice to deliver it, and your PMS access will be limited until you do. Start your files now so you move quickly once selected.

Quick reference table

Source type	Eligible as match	What support looks like
Non‑federal cash	Yes	Bank proof, signed commitment, and ledger entry tied to a 13977 line
In‑kind services	Sometimes	Timesheets or simplified method support, valuation method, dates
Donated space or goods	Yes, as match, not reimbursable	Fair market valuation, dates of use, and calculation notes
Specific federal funds	Limited, confirm first	Written allowance from the other agency, plus guidance notes
FEAB	No, as match	FEAB can be federally funded, keep it at or under 10% of the award

The program instructions include examples where certain federal sources, like HUD CDBG, can be used with limits, and where AmeriCorps cannot. When in doubt, confirm with the other agency and the Grant Program Office before you count it.

Valuing Volunteer And Paid Time, The Clean Way

Paid time is simple, use payroll, document hours tied to grant activities, and apply your fringe method consistently. For volunteers, you can use time sheets, or the simplified method that multiplies each accepted federal return from traditional VITA sites by a local return‑preparer wage plus reasonable fringe. Keep your wage research and IRS production reports as support.

Indirect Costs, FEAB, And The Lines That Raise Questions

Indirects that pass review

• If you have a NICRA, attach it and apply the correct base.
• If not, you may elect the 10% de minimis on MTDC. Show this on Form 13977, then apply it the same way all year.
• Do not count indirects as match. Keep indirect documentation with your application or provide it within the allowed window.

FEAB, keep it under 10%

You may budget FEAB activities like workshops. The combined FEAB total cannot exceed 10% of the federal award. Label FEAB lines in your budget and narrative, keep a running subtotal, and check it again before you upload. Monitor during the year so you do not accidentally cross the ceiling.

Timelines, Windows, And What “On Time” Means

The IRS posts a standard timeline, application window May 1 to May 31, review June through September, selections near October 1, performance October 1 to September 30. Submissions go through Grants.gov and must pass validation by the close date. Plan backwards from those dates, especially for quotes, letters, and signoffs that can slip near deadlines.

Where to go with questions

Keep the current VITA grant publications open as you work. Use the Grant Program Office email for program questions and confirm your SAM and Grants.gov access before May 1 so your submission does not stall.

What The IRS Expects You To Achieve

The VITA Grant Program’s objectives focus on underserved taxpayers, e‑file growth, accuracy, and measurable results. Your agreement includes a Minimum Federal Returns Expected, MRE, and the IRS validates actual production in its systems. Hit 100% of the return goal, then show year‑over‑year increases while keeping accuracy and cost in check.

Meet the goal, then grow, while staying accurate. That is how you protect multi‑year funding.

Recordkeeping That Protects Your Award

Maintain documentation for both federal and matching expenditures for at least three years from the end of the program period. Keep volunteer records, valuation methods for in‑kind, and source documents ready for review. If you use timesheets instead of the simplified method, keep those files for three years after the end of grant reporting.

Step‑By‑Step, Filling Out Form 13977

Prepare your source files first

• Personnel, gather rate sheets, job descriptions, and allocation plans by activity.
• Fringe, compile employer cost schedules or the approved fringe rate with support.
• Quotes, collect vendor quotes for equipment and supplies, and document reasonableness.
• Contractual, draft scopes that expand site capacity toward your MRE.
• Match, organize letters, MOUs, logs, and valuation methods now, so the 20‑day clock is easy.

Enter the budget lines accurately

• Personnel and Fringe, list titles, rates, percent effort, and totals for October 1 to September 30.
• Travel, identify training, site setup, and coordination travel by role and purpose.
• Equipment and Supplies, tie each item to site operations, outreach, or quality.
• Contractual, show rates or fixed fees and the work they cover.
• Other, include allowable items like publicity and limited volunteer food as instructed.
• Indirect, indicate NICRA or 10% de minimis on MTDC and show the calculation.

Reconcile everything

Reconcile 13977 totals to SF‑424 and your narrative, and make sure Form 14335 contacts match SAM.gov. Confirm your current Form 13533 with SPEC is on file. Upload the complete package through Grants.gov by the deadline so it passes system validation on time.

Example, A Simple Match Support Plan

• Cash match, a local foundation commits 25,000 with a signed letter stating purpose, dates, and cost categories.
• In‑kind match, a technology firm donates refurbished laptops valued at fair market rates with documentation.
• Volunteer match, you elect the simplified method, document local preparer wages, then multiply by accepted federal returns from traditional VITA sites shown in IRS reports. Keep the wage research and IRS system reports in the file. Note that services provided by students to satisfy an academic requirement do not qualify as matching funds.

A Note On Operations Discipline

Strong budgets fall apart when delivery is chaotic. You will move faster if you standardize SOPs, structure workpapers, and layer reviews so less time is spent in rework. If you bring in offshore capacity to relieve your team, keep control of templates, checklists, and turnaround SLAs, so you protect quality, privacy, and deadlines. That discipline is what turns a clean budget into clean performance in IRS systems.

Final Checklist Before You Upload

• Period of performance is set, October 1 to September 30, and only in‑period costs appear on 13977.
• FEAB subtotal is labeled and at or below 10% of the award.
• Indirects are declared, NICRA attached or 10% de minimis election shown, and the base is correct.
• Match is fully documented now, or your plan to deliver within 20 days is ready and filed on time after award.
• SF‑424 totals match your 13977 and narrative, and Form 14335 contacts match SAM.gov.
• Form 13533 is current with SPEC, and all files are submitted through Grants.gov before the deadline.

Common Mistakes We See Every Season

The patterns we see year after year cluster around the same handful of line-level confusions. Catch these before the Grants.gov upload and the 20-day match window stops feeling like a fire drill.

Reusable Checklists

These checklists are written so a coordinator or operations lead can paste them into an SOP and work them line by line. Each item maps to a specific Form 13977 line, a Grants.gov submission requirement, or a documentation rule from IRS Publication 4671.

Keep 13977 Season From Stalling

VITA Grant Budget Plan packets stall every year for the same reason. The Grants.gov window runs short, the budget has to thread 15 numbered lines that each carry their own caps, and the matching funds documentation has a 20-day post-award fuse if it did not ship complete the first time (per IRS Publication 4671, VITA Grant Program Overview and Application Package). Coordinators end up assembling Line 1 personnel detail, Line 9 FEAB justification, and Line 11 indirect rate paperwork the same week, and something always slips.

The pattern is fixable, and it has nothing to do with hiring faster. It is a documentation discipline problem. When the Line 12 total, the SF-424 abstract, and the narrative all reconcile before upload, reviewer follow-ups drop and the 20-day match window stops feeling like a cliff. Treating Form 13977 as a sequenced build, not a single packet, is what changes the rhythm.

• Lock the Line 11 election early. If you hold a Negotiated Indirect Cost Rate Agreement, attach it; if you do not, declare the 10% de minimis on MTDC and document the base before any Line 1 number lands. Indirects sit in the Federal column only and cannot be counted as match.
• Separate fringe from base salary at the source. Line 1 holds personnel cost only, Line 3 holds fringe benefits, and combining the two on a burdened rate is the most common reviewer flag we see.
• Build the Line 9 FEAB subtotal as a labeled rollup, not a single number. The 10% cap is computed on the federal amount awarded, not on the total program budget, and showing the math protects you when the award figure shifts between application and notice.
• Stand the matching funds packet up in parallel, not after award. Volunteer service rates per OMB 2 CFR Part 200, donated equipment at fair market value, and the Line 2 simplified-method calculation each need their own source document so the 20-day clock never starts cold.
• Cross-check Line 12 against SF-424 totals and Form 14335 contacts before upload. The page-1 caption reads "add all lines," but the line-by-line instructions confirm Line 12 totals only Lines 1 through 11; Lines 13 through 15 are Yes/No disclosures and do not roll into the budget.

This is the work Accountably handles for organizations that want VITA Grant production capacity without rebuilding their finance team. Our trained U.S.-led offshore teams integrate into the applicant's workflow, run the line-by-line reconciliation, and keep the supporting documentation aligned to the application timeline so the budget plan ships clean the first time.

FAQs

Do I still use Form 13977 for this cycle?

Yes. Use the current year’s instructions and Grants.gov package to confirm required forms, then prepare your budget and narrative accordingly.

What exactly is due within 20 days of the award?

Complete matching funds documentation. If you did not include full match proof with your application, you must provide it within 20 days of the date on your award notice. Until then, your PMS account is limited to the documented match.

How much FEAB can I include?

You may budget FEAB activities, and you must keep combined FEAB at or under 10% of the federal award (the 10% cap is computed on the total federal amount awarded, not on the total program budget including match). Label FEAB lines and track the subtotal during the year so you do not cross the ceiling.

Which indirect rate should I use?

If you have a NICRA, attach it and apply the correct base. If you do not, you may elect the 10% de minimis on MTDC, then show the election on Form 13977 and apply it consistently. Indirects cannot be counted as match.

How does the IRS check my return counts?

Your agreement includes a Minimum Federal Returns Expected. The IRS validates actual production using its systems, not just your projections, so track progress during the season and address gaps early.

Where can I see the official dates?

The IRS VITA and TCE grants page shows the application window, selection target near October 1, and the performance year from October 1 to September 30. Use those dates to plan staffing and purchases.