Are Business Meals Tax Deductible? Yes — 50% Deduction on Schedule C
50%
Deductible
Line 24b
Schedule C
Meals (50% deductible)
Category
Meals with clients, prospects, or business partners can reduce your taxable income, but only 50% of the cost is deductible. This deduction applies to self-employed individuals and single-member LLCs filing Schedule C, and requires clear documentation of the business purpose. Understanding what qualifies will help you maximize legitimate deductions without audit risk.
Who qualifies?
Self-employed individuals, sole proprietors, freelancers, and single-member LLCs filing Schedule C can claim business meal deductions. The meal must directly relate to conducting business—such as entertaining a client, meeting a prospect, or discussing a business deal with a partner.
How to claim it
- 1 Track all business meal expenses with date, location, attendees, and business purpose (use a receipt or expense log).
- 2 Calculate 50% of the total meal cost—only this amount is deductible on your tax return.
- 3 Enter the 50% deductible amount on Schedule C, Line 24b (Meals and entertainment).
- 4 Keep all receipts and documentation for at least 3–7 years in case of IRS inquiry.
Pro tip
Use a dedicated business credit card or expense app to automatically categorize and track meal expenses in real time. This reduces manual entry errors and makes year-end tax preparation seamless. Always write the business purpose and attendee names on receipts immediately after the meal—your memory won't be reliable come tax time.
Source: IRS Publication 463: Travel, Gift, and Car Expenses
Judy automatically tracks Business Meals
Connect your business bank account and Judy categorizes Business Meals charges to Meals (50% deductible) (Line 24b) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
Get your free audit