See "Tax Year 2021 & 2022" below for information pertaining to your 2021 and 2022 returns.
The allowable amount of meal expenses you are allowed to deduct on your Schedule C is determined by the line of work you are in.
- For most taxpayers, the IRS allows you to deduct 50% of your business meal expenses, including meals incurred while away from your home on business. These include:
- Water, coffee and snacks in a company break room
- Meals provided during meetings or seminars
- Meals during business travel
- If you are subject to the Department of Transportation (DOT) hours of service limits, the allowable deductible percentage is increased to 80% for business meals consumed, or related to, any period of duty for which those are in effect.
Tax Year 2021 & 2022
The Taxpayer Certainty and Disaster Relief Act of 2020 allows a temporary exception to the normal limitation on deductions for food and beverage expenses. Businesses may now claim 100% of qualifying meal expenses incurred between January 1, 2021 and December 31, 2022. For more information, please see the IRS News Release.
Entertainment expenses are no longer deductible. These include:
- Sporting events and tickets
- Leisure activities
- Club memberships
If the food and beverages were purchased separately from the entertainment, or the cost of the food and beverages was stated separately from the cost of the entertainment on one or more bills, invoices, or receipts, you can deduct ONLY the amount for the food or beverages provided.
For more information, please see the Schedule C Instructions.