Schedule C - Department of Transportation Hours of Service Limits
When reporting business expenses on Schedule C (Form 1040), certain deductions for business meals may be subject to special rules if you are subject to the Department of Transportation (DOT) hours of service limits. These rules apply to individuals such as truck drivers and other transportation workers who are regulated under DOT guidelines.
Business Meal Deduction for DOT-Regulated Individuals
- For most taxpayers, the deduction for business meals is limited to 50% of the meal cost.
- However, if you are subject to DOT hours of service limits, you may deduct up to 80% of your business meal expenses.
- This higher deduction applies to meals consumed during or incident to any period of duty for which DOT hours of service limits are in effect.
- These meals must be directly related to your business activity and incurred while away from home on business.
Who Qualifies?
Individuals subject to DOT hours of service limits include:
- Commercial truck drivers
- Other transportation workers regulated under DOT rules
These individuals must ensure that the meals are incurred in the course of their business duties and are not personal in nature.
Reporting on Schedule C
When completing Schedule C, you should report the total cost of business meals on the appropriate line. The allowable deduction (50% or 80%) will be calculated based on your eligibility under DOT regulations. Ensure that you maintain proper records to substantiate the business purpose and timing of the meals.
Source:
Schedule C (Form 1040) Instructions
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.