- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
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.
‎June 4, 2019
5:52 PM