Can You Write Meals Off Your Taxes?

Maximizing your deductibles and minimizing your tax liability is an important practice for individuals and business owners looking to save money. Writing off expenses is a common strategy to reduce taxable income because it can result in substantial savings. However, there are many different rules regarding deductibles, so it's important to understand what expenses qualify for a deduction.

Can You Write Off Meals?

Writing off meals can be a bit complex. Over the years, rules have constantly changed for what types of meals qualify for a deductible and how much can be deducted. Generally, meals are considered a personal expense and are not deductible. However, there are specific circumstances where you can write off meals on your taxes:

Business Meals: Meals that are related to your business can be deductible. Actions such as company-wide parties and business meals (included in compensation) are deductible. Business meals can be 100% deductible, provided they meet certain criteria.

Travel Meals: Meals consumed while traveling for business purposes can also be deductible. The IRS allows a 50% deduction for these meals given that the trip is long enough that employees need to refuel to perform their duties properly.

Entertainment Meals: Entertaining clients is nondeductible, however, meals provided during entertainment events, can be 50% deductible if there is a clear business purpose and business is discussed.

To qualify for a deduction the meal must be reasonable and necessary for your business. This means a deduction will only count if a meal is accompanied by a business discussion or purpose. If you believe your meals qualify for deductions, make sure you keep documentation. Save the receipt and record the location, date, and business purpose of the meal. You can then provide this information to a certified public accountant to bookkeep and write off as a deductible when tax season rolls around.