Independent Contractor (1099-NEC) - 2022 Business Meal

[rjaradeh]

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?

[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.

[rjaradeh]

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%

[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.