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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

20 Section 315 Change #01-2022 January 11, 2022 c. Divide the result by 12 to obtain the average monthly income to count for the certification period. d. Continue to budget this amount for the certification period unless the FNS unit reports an increase or decrease in income. i. Enter the anticipated averaged monthly income in NC FAST. ii. If there was a loss in farm income, see 315.28 F. Example: Jane reports that she is self-employed and provides her previous year’s tax returns. Jane states that the return is representative of her annual income. The worker reviews the tax returns and determines that the gross income (prior to any deductions) is $25,000. The client claimed $15,000 in deductions on her tax return. The client wrote herself checks totaling $10,000 during the year as wages. Because this is not an allowable cost of doing business the $10,000 portion of the deduction cannot be allowed. The calculation would be as follows: Total Gross Income prior to deductions

$25,000 Total Allowable Deductions -(minus) $5,000 Countable Self-employment Income =(equals) $20,000 Divided by # of months in business /(divided) 12 Monthly Self-employment Income

$1,666.67

2. If the business has been in existence for less than one year and the household states this is representative: a. Obtain income and expense verification for the number of months that the business has been in existence. b. Subtract the allowable and reasonable costs of producing the income. See 315.28 C. for a listing of these deductions. c. Divide the result by the number of months that the business has been in existence. d. Continue to budget this amount for the certification period unless the FNS unit reports an increase or decrease in income. e. Enter the anticipated averaged monthly income in NC FAST. f. If there was a loss in farm income, see 315.28 F.