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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 medical expenses as a deduction if the household is responsible for payment. NC FAST will allow this deduction based on information entered into the system. 3. NC FAST only allows a deduction for amounts that exceed $35 per month. No medical deduction will be given unless the specified person(s) in the FNS unit has more than $35 in monthly medical expenses. 4. If individuals have medical insurance, Medicare, Medicaid, or pending lawsuits, do not delay or deny the medical deduction if reimbursement of expenses is uncertain or unlikely. B. Allowable Medical Expenses The following list includes most allowable medical expenses but is not all-inclusive. 1. Health and hospital insurance premiums (only the portion deemed for the specified person). If you cannot identify this amount, allow a prorata share; 2. Co-payments; 3. Cost associated with a service animal trained to serve the need(s) of an elderly or disabled person. An animal must be specially trained to assist the FNS recipient in order for its associated maintenance costs (from veterinary bills to food and other expenses) to be allowable deductions. If the animal has not been specially trained, it is not a service animal and its expenses are not deductible. A pet or companion animal that a client already has when prescribed a service animal does not automatically become a service animal – the animal must have specialized training to assist the individual with the medical issue for which the animal is prescribed; 4. Reasonable transportation and lodging to obtain medical treatment. This includes trips to fill prescriptions for medicine, dentures, a hearing aid, eyeglasses, sickroom equipment, etc. Allowable mileage is the current business IRS mileage rate. The current milage rate can be found by going to the IRS website and searching business mileage rate. If the transportation could qualify as either a medical expense or a dependent care expense, count as Dependent Care since there is not a limit to Dependent Care Expenses; 5. Medicare Premiums including Medicare Part D premiums; 6. Monthly telephone fees for amplifiers and warning signals for handicapped persons and costs of typewriter equipment for the deaf; 7. The following items if provided, prescribed, or approved by a licensed practitioner or other qualified health professional: a. Medical and dental care;