The IRS has ruled that in the case whether a client reimburses a contractor his meal expense, only one party (either the client or the contractor) shall bear the 50% limit.
Who shall bear that 50% limit depends on whether you account for the meals (i.e. provide receipts or other justification) to your client. If you account for the meals, then the client bears the 50% limit. If you fail to account for the meals, then you bear the 50% limit.
Please read this article for more information:
http://www.bizfilings.com/toolkit/news/tax-info/meal-expenses-travel-deducting-50-percent-limit.aspx
To avoid the 50% limit in TurboTax, you list the expense under Meals and Entertainment: 100% Limit.
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