4 types of travel meal expenses...how do I file these?

[chrishennig]

Hey all, thanks in advance for help.

I travel for work, mostly working for musicians at concerts. I'll leave home and sometimes not come back for 6 weeks. I'd like to take advantage of M&IE per diem rates per city as I often travel to expensive places.

My question is about meals. How would I expense these scenarios? It's all 1099 work.

Contract 1: I pay for restaurants 3 meals a day, contract pays no per diem (I assume I can deduct 100% of GSA M&IE rate, yeah?

Contract 2: I pay for restaurants 3 meals a day, contract pays $25 per diem, but it's not added to my 1099

Contract 3: I pay for restaurants 3 meals a day, contract pays $25 per diem, but it IS added to my 1099

Contract 4: Supplies 3 meals a day (catering), but occasionally I still go out to restaurants for a meal or two a day.

Thanks for any help!

[Vanessa A]

Contract 1: I pay for restaurants 3 meals a day, contract pays no per diem (I assume I can deduct 100% of GSA M&IE rate, yeah?    Yes, in this situation, you can deduct all 3 meals

Contract 2: I pay for restaurants 3 meals a day, contract pays $25 per diem, but it's not added to my 1099.  If it is not added to your 1099, then it is tax free income, so you cannot take a deduction for that $25

Contract 3: I pay for restaurants 3 meals a day, contract pays $25 per diem, but it IS added to my 1099.  Since it is added to your 1099, you can deduct it since you are being taxed on the income you are receiving for it. 

Contract 4: Supplies 3 meals a day (catering), but occasionally I still go out to restaurants for a meal or two a day. You can deduct the meals eaten at a restaurant. 

[chrishennig]

@Vanessa A thanks for your reply.

on Contract 2...

Say I eat in NYC 3 meals, which has an allowance of $79. Can I deduct $79 minus the $25 paid by contract?

Also...in my line of work (1099 full time travel) it's my understand that for '22 (and '21, oops) I can deduct 100% of the M&IE cost (ie, 100% of $79 for a day spend in NYC). But in '23, it's back to normal, I can only deduct 50% of $79 when I visit NYC this year, etc, yeah?

Thanks again!

[Vanessa A]

Yes, you could deduct the $25 from the $79. 

You can deduct 100% of Meals you eat at a restaurant for 2021 and 2022.  So, if you go to Wegmans and buy food to cook in your hotel, this would be subject to the 50% limit. But you are correct, it is back to 50% for 2023.

[chrishennig]

Copy. My thanks!

-Chris