Question

Independent Contractor (1099-NEC) - 2022 Business Meal

Forum|Forum|3 years ago
March 27, 2023
1 reply
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Hi,

I have received a 1099-NEC form and I have business meals to deduct. I asked a Tax expert of under which categories I should put these business meals under. You should know that I don't give out W2s to employees simply because I don't have any.

Category 1: 100% deductible

Category 2: 50% deductible

The answer that the tax expert gave me is that it should be under 50% as they are business meals in restaurants. HOWEVER, TurboTax says something different. It mentions under see more example page that

"For tax years 2021 and 2022, there's a temporary 100% deduction for business meals purchased from restaurants".

Does that mean I can still claim these expense as 100% deductible or this does not apply to me?

M

MinhT1

Yes. the enhanced deduction for business meals applies to you.

For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.

Please read this IRS document for more information.

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R

rjaradehAuthor

Ok the Tax expert said that because I don't have employees under me a.k.a W2s given to my employees therefore, I am not qualified for a 100% deduction but rather 50%

V

Vanessa A

As stated by MinhT1, you would qualify for the enhanced deduction of 100% if you purchased the meals and beverages at a restaurant and it was business-related. You do not need to have employees to take the deduction.

The 100% deduction rule applies to 2022 only.

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