Form 2106 - Per Diem - Schedule C

Per diem rates would be entered on Schedule C (Form 1040), Lines 24a and 24b, for travel and meal expenses.

To enter the Per Diem rates for Federal Schedule C into the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Business Income dropdown, then click Business income or loss from a sole proprietorship.
  3. Click + Add Schedule C to create a new copy of the form or click Edit to review a form already created (desktop program: click Review instead of Edit).
  4. Continue with the interview questions until you reach the screen titled Select a topic to review for this business or Let's review your income for this business, then click Continue.
  5. Continue with the interview questions until you reach the screen titled Great! Let's get started on expenses for this business, then click Enter expenses.
  6. On the screen titled Enter your business meals expense for this business, enter the Total meals expense, then click Continue.

Note. Enter all of your meals expenses. Your deduction is generally limited to 50% of your total costs, but TaxAct will take care of the math for you. If the taxpayer is subject to the Department of Transportation (DOT) hours of service limits, the deduction is limited to 80%

NOTE: Notice 2021-63 allows for a 100% deduction for meals at a restaurant until January 1, 2023. The 100% deduction ended on December 31, 2022.

You can find the current rates on the U.S. General Services Administration's Per Diem Rates webpage. A searchable Excel file can be downloaded from this site to make finding the applicable rates easier.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.