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orenaz
New Member

50% business meal deductible only deducts 14% ?

Hi, 
As turbotax explains, business meals suppose to be 50% deductible but when I add to the Turbotax Home and Business version for sole owner LLC it only deducts 14% 

And that 14% is the same whether I placed one meal or many of them...

Would appreciate any help,

thanks

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2 Replies
orenaz
New Member

50% business meal deductible only deducts 14% ?

Checking the 100% fully deductible meals only deducted 30% if that means anything... All these showing on "federal tax due" on top of the program window
AnnetteB
Intuit Alumni

50% business meal deductible only deducts 14% ?

Deducting meals (whether 50% or 100%) as a business expense does not affect your overall balance due or refund amount dollar-for-dollar.  Tax credits can do that, but deductions do not. 

Claiming meal expenses reduces the overall business income shown on Schedule C.  Then, with a smaller income amount for the business, you will reduce your taxable income and also reduce your self-employment tax. 

The changes you are seeing in the screenshots you provided are a result of reducing your business income, self-employment tax, and your income tax. 


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