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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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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