What percent of meal expenses are deductible on Form Schedule C?

For most self-employed taxpayers and small business owners, business meal expenses are generally 50% deductible on Schedule C for tax year 2026.

To qualify for the deduction, the meal must be:

• An ordinary and necessary business expense
• Not lavish or extravagant under the circumstances
• Purchased while conducting or discussing business
• Attended by you, your employee, or a current or potential business contact

If a meal is purchased during an entertainment event, the food and beverages must be billed separately from the entertainment costs. Otherwise, the meal expense may not qualify for a deduction.

Special Rule for Transportation Workers

If you're subject to U.S. Department of Transportation (DOT) hours-of-service rules, you may be able to deduct 80% of qualifying meal expenses instead of the standard 50%.

This rule commonly applies to certain transportation workers, such as long-haul truck drivers and other employees covered by DOT regulations.

Where Do I Enter Meal Expenses in the Program?

To enter business meal expenses:

1. Go to Federal.
2. Select Income (Select My Forms).
3. Open Profit or Loss from Business (Schedule C).
4. Select General Expenses.
5. Enter your qualifying meal expenses.

What Were the Meal Deduction Rules for 2021 and 2022?

For tax years 2021 and 2022 only, businesses were generally allowed to deduct 100% of the cost of qualifying food and beverages purchased from restaurants.

That temporary rule has expired. For tax years after 2022, business meals generally returned to the standard 50% deduction limit, unless a special exception applies.