topic In Turbo Tax Business Program Do I enter Meals at 50% or at 100%? in Deductions & credits

In Turbo Tax Business Program Do I enter Meals at 50% or at 100%?

debwalker10 — Sun, 14 Mar 2021 17:20:37 GMT

In Turbo Tax Business Program Do I enter Meals at 50% or at 100%?

Does TruboTax do a calculation to reduce the full amount to the 50% limitation OR do I only enter the dollar amount at 50%?

Thanks! Deb

Re: In Turbo Tax Business Program Do I enter Meals at 50% or at 100%?

JohnB5677 — Sun, 14 Mar 2021 17:41:52 GMT

Businesses can fully deduct 100% of the cost of:

Office parties and outings held for the benefit of its employees (other than highly-compensated employees)
Meals and entertainment provided to employees as compensation and reported as taxable wages
Meals and entertainment expenses reimbursed to employees upon submission of employee expense reports

However, Things like free coffee, donuts, and snacks provided at the workplace, as well as onsite meals for employees working overtime, are considered “meals provided for the convenience of the employer.” these are now 50% deductible in tax years 2018 through 2025, and nondeductible after that.

Also, the Jobs Act of 2018 has suspended all other entertainment expense deductions in 2018 through 2025. Prior to that, businesses were allowed to deduct 50% of the face value of entertainment tickets and events, and 100% of the cost to qualified charitable events, if the purpose was business-related.

Re: In Turbo Tax Business Program Do I enter Meals at 50% or at 100%?

debwalker10 — Sun, 14 Mar 2021 18:12:17 GMT

This answer did not even address the question. It was a stock answer much like the help in Turbo Tax, which I already checked thoroughly. I was asking a process question about how to enter data into TurboTax.

Re: In Turbo Tax Business Program Do I enter Meals at 50% or at 100%?

DavidD66 — Sun, 14 Mar 2021 20:29:51 GMT

To be on the safe side, I would just enter as a 100% deduction. There is still a category of expenses that are only 50% deductible, as noted by JohnB5677