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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 2. To enter the deduction in NC FAST: a. Use the actual dependent care expense, including cents; do not round and convert amounts paid weekly, bi-weekly, or semi-monthly to a monthly amount. b. If the expense is paid less often than monthly, average and convert to a monthly amount. c. Enter the actual monthly converted expense paid for each dependent in NC FAST. d. If one dependent care payment is paid for more than one child or incapacitated adult, enter each child’s or incapacitated adult’s portion. EXAMPLE: Mrs. Bell pays $400 for full time care for one child and $150 for afterschool care for two children. Enter $400 for the child who receives full time care. Enter $75 each for the two children who receive afterschool care. 340.05 SHELTER DEDUCTIONS A. A FNS unit is entitled to a shelter/utility deduction when shelter and/or utility expenses exceed 50% of the monthly income after the earned income, standard, medical, dependent care, and child support deduction have been subtracted. B. Only that portion of the shelter and/or utility expense which represents the regular monthly payment is used in the calculation of the household’s shelter expense. Do not include the amount intended to cover any past due payments. C. Allow a deduction for expenses that are incurred or billed, whether paid or not, up to the monthly shelter cap. NC FAST calculates this automatically. If the FNS unit contains a specified person, it is not subject to the shelter cap. D. Allow a deduction if a shelter expense is billed in the name of a non-FNS unit member but is the responsibility of the FNS unit to pay. 340.06 ALLOWABLE HOUSING EXPENSES The following are allowable housing expenses. A. Rent; B. Mortgage (principal and interest), including second and third mortgages, regardless of the use of the money;