Schedule C - Department of Transportation Hours of Service Limits

Business meals are 100% deductible if the meals are food or beverages provided by a restaurant and paid or incurred after December 31, 2020, and before January 1, 2023. In most cases, for other business meals, you can deduct only 50% of your business meal expenses, including meals incurred while away from home on business.

However, for individuals subject to the Department of Transportation (DOT) hours of service limits, the percentage for other business meals is increased from 50% to 80% for business meals consumed during or incident to, any period of duty for which those limits are in effect.

Individuals subject to the DOT hours of service limits include the following:

• Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations.

• Interstate truck operators who are under DOT regulations.

• Certain merchant mariners who are under Coast Guard regulations.

However, you can fully deduct meals and incidentals furnished or reimbursed to an employee if you properly treat the expense as wages subject to withholding. You can also fully deduct meals and incidentals provided to a nonemployee to the extent the expenses are includible in the gross income of that person and reported on Form 1099-NEC.

See Pub. 535 for details and other exceptions.