A team meal for employees belongs on Line 24b, deductible meals.
Why line 24b
Food bought for your employees while they work, a lunch brought in for a planning session or sandwiches on a job site, is a business meal on line 24b and is limited to 50 percent under current law. The old treatment of meals provided for the employer's convenience as fully deductible no longer applies. One carve-out is worth knowing: an occasional recreational or social event for staff, a summer barbecue or a holiday dinner, is not subject to the 50 percent limit, so keep those receipts separate from the ordinary working meals.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a team meal for employees lands on Line 24b without you sorting it.
Start for freeWhat a team meal for employees is confused with
- Line 14, employee benefit programs
- Line 14 is for employee benefit programs such as accident and health plans, group-term life and dependent care; feeding the team is a meal expense, not a benefit program.
- Line 26, wages
- Food provided to employees is a meal on line 24b; a cash meal allowance paid to an employee is compensation and goes through payroll into wages on line 26.
- not deductible, not deductible
- A meal for yourself alone is not rescued by the fact that other meals that week were for staff.
Examples that belong on line 24b
- $84 of pizza for a Saturday install crew, deducted at $42
- $120 of catering for a quarterly planning day, deducted at $60
- $46 of sandwiches brought in for a two-person team, deducted at $23
- $38 of coffee and bagels for a 6am job site start, deducted at $19
- $210 of food at an annual staff barbecue, not subject to the 50 percent cut
What does not belong here
- A full deduction on a working meal because it was for the business's convenience.
- The owner's own daily lunch mixed into the staff meal total.
- Cash handed to staff for food, which is payroll.
- Groceries for the owner's household bought on the same shop.
The limit that applies
Limited to 50 percent for ordinary working meals. An occasional recreational or social event primarily for employees is not subject to that limit. The 100 percent restaurant deduction applied only to 2021 and 2022.
What to keep
Keep the receipt with the number of people fed, who they were and what the work occasion was. Tag the occasional staff social events separately, because they are the ones that escape the 50 percent limit.
Other expenses on line 24b
| Expense | Line |
|---|---|
| a coffee meeting | Schedule C, Line 24b |
| a meal at a conference | Schedule C, Line 24b |
| a staff holiday party | Schedule C, Line 24b |
| lunch with a client | Schedule C, Line 24b |
| your own meals while traveling overnight | Schedule C, Line 24b |
Related lookups
- Where does employee health insurance go on Schedule C?
- Can I pay my child and deduct it on Schedule C?
- Is a car payment deductible on Schedule C?
Sources
- Instructions for Schedule C (Form 1040)
- Publication 15-B, Employer's Tax Guide to Fringe Benefits
- Publication 334, Tax Guide for Small Business
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a team meal for employees lands on Line 24b without you sorting it.
Start for free