Are Client Dinners Tax Deductible? Yes — 50% Deduction on Schedule C
50%
Deductible
Line 24b
Schedule C
Meals (50% deductible)
Category
$30–$100+
Typical cost
Client dinners are partially deductible business expenses for self-employed individuals and single-member LLCs. The IRS allows you to deduct 50% of the cost when you're discussing business with current or prospective clients. This deduction appears on Schedule C Line 24b (Meals and entertainment), and proper documentation is essential to defend the deduction in an audit.
Who qualifies?
Self-employed individuals, sole proprietors, and single-member LLC owners filing Schedule C can claim client dinner deductions. The meal must occur while conducting active business discussions—casual meals without a clear business purpose don't qualify.
How to claim it
- 1 Keep the original receipt showing the date, location, and total amount spent on the meal.
- 2 Document the business purpose and names of all attendees (client, prospect, or business partner) on or near the receipt.
- 3 Calculate 50% of the meal cost and enter it on Schedule C Line 24b when filing your tax return.
- 4 Maintain organized records (receipts, notes, attendee list) for at least three years in case of IRS inquiry.
Pro tip
Write the client's name and business topic discussed directly on the receipt immediately after the meal—this small step dramatically strengthens your documentation and reduces audit risk. The IRS specifically looks for meals claimed without clear business purpose, so detailed notes are your best defense.
Source: IRS Publication 463: Travel, Gift, and Car Expenses
Judy automatically tracks Client Dinner
Connect your business bank account and Judy categorizes Client Dinner charges to Meals (50% deductible) (Line 24b) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
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