Where to list meals for travel?

[jane5]

Two questions:

- Where to put meals for travel? Under Travel with airfare and lodging, or under other business expenses?

- Do I understand correctly only meals from restaurants are 100% deductible, while other food is 50%? If so, how will the IRS know which is which. Do I need to separate them out on 2 different entries? It kind of stinks to be penalized for not eating restaurants. For a number of reasons, I feed myself from grocery stores when I travel

[LindaS5247]

Meals and overnight lodging. You may deduct only 50% of the cost of business meals. Except that in 2021 and 2022 you can deduct 100% of the cost of qualified business meals provided by a restaurant.  This was to help restaurants hurt by the pandemic.

They would be deducted under travel.

Click here for additional information regarding meals as a business expenses.

[Bsch4477]

Your understanding is correct. The IRS expects the taxpayer to keep records and receipts to document restaurants meal expenses as opposed to food purchased otherwise. The law was enacted to encourage restaurant patronage affected by Covid. 

[jane5]

Does that mean you'd enter one line item called "Meals: restaurant" and another called "Meals: non restaurant."

[AliciaP1]

No, your business meals need to be entered as meals whether they were travel meals or other business meals. 

Meals can be 100% or 50% deductible:

100% - 

• Business meals purchased at a restaurant
• Company parties
• Food made available to the public for free
• Meals for children at daycare facility
• Other meals (100% limit) expenses

50% - 

• Meals during business travel
• Meals while conducting business
• Meals at a seminar or conference
• Office snacks
• Other meals expenses

To enter meals in TurboTax Online you can follow these steps:

1. Within your tax return use the magnifying glass icon to search for Schedule C
2. Click the Jump to link
3. Click Edit for the line of work
4. Scroll down to Expenses and click Start or Edit if the category you want is shown (you may need both categories Meals (100% limit) and Meals (50% limit)
   • If you don't see the category you want listed click Add expenses for this work
   • Scroll to and mark the box for the category of expense you want to add - if you don't see it on the list, scroll down to the Less Common section and click the down arrow and show more until you do
   • Click Continue

@jane5