Business meal deductions are generally limited to 50% of the cost for tax years 2023 through 2025. If you are subject to Department of Transportation (DOT) hours-of-service rules (such as certain truck drivers), you may be able to deduct 80% of qualifying meal expenses instead. To qualify, the meal must be an ordinary and necessary business expense, not lavish or extravagant, and you (or your employee) must be present with a current or potential business contact. If meals are purchased during entertainment, the food must be listed separately from the entertainment cost to be deductible.
Where to enter meal expenses?
To enter meal expenses within the program, go to:
- Federal
- Income (Select my forms)
- Profit or Loss from Business (Schedule C)
- General Expenses
What were the meal deductions for 2021 and 2022?
For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.
For more information, please review the Schedule C instructions here.