Business Taxes

Schedule C - Department of Transportation Hours of Service Limits

Understanding HOS Limits for DOT

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For Schedule C filers who are subject to Department of Transportation (DOT) hours of service limits, the deduction for business meals is generally increased to 80% of the allowable meal expense, instead of the standard 50% limitation that applies to most taxpayers. This higher deduction applies only to meals consumed while traveling away from the taxpayer’s tax home and during or incident to a period of duty subject to DOT hours of service rules.

Eligible Individuals

  • Certain air transportation workers (e.g., pilots, crew members, dispatchers, mechanics, and control tower operators) subject to Federal Aviation Administration (FAA) hours of service limits.
  • Interstate truck operators and other transportation workers subject to DOT hours of service regulations.
  • Certain merchant mariners subject to U.S. Coast Guard hours of service rules.

Important Notes

  • The 80% deduction applies only to meals consumed while traveling away from home and during or incident to duty periods governed by DOT hours of service limits.
  • Meals are generally subject to the 50% limitation, unless the taxpayer qualifies for the 80% rule described above. The temporary 100% deduction for restaurant meals (applicable in 2021–2022) has expired and does not apply for 2025.
  • Meals and incidental expenses reimbursed or provided to employees may be 100% deductible by the employer if the value is included in the employee’s wages and reported on Form W-2. Otherwise, the 50% or 80% limitation applies.
  • Meals provided to nonemployees may be fully deductible only if the expense is includible in the recipient’s gross income and properly reported, such as on Form 1099-NEC Nonemployee Compensation. If not treated as income to the recipient, the applicable 50% or 80% limitation applies.

Source:

Schedule C Instructions (2025)

Disclaimer: Always verify details with the current IRS Form and Instructions, as well as your state’s Department of Revenue. Tax rules may vary based on individual circumstances and jurisdiction.

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Key Takeaways

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  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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