Buying Meals for Team

[jmg11]

I am a manager who works in a large company. At the end of the year, I typically take my team out to lunch to celebrate the work we did together. I pay for this out of my own pocket because my company's policy does not allow me to expense it. I am not the owner of the company. Can I deduct these expenses as business gifts or anything else?

[AnnetteB6 · Accepted solution]

No, probably not.  The meal expenses would be considered employee business expenses and they are not deductible on your Federal return.

If you are a W-2 employee, then those expenses are entered on Form 2106 as part of your Federal return.  However, they cannot be deducted on your Federal return due to the Tax Cuts and Jobs Act passed in 2017.  This suspended the Federal deduction for employee business expenses for tax years 2018 through 2025 for everyone except a few very specific types of employees.  

That being said, some states did not conform to the Federal change and they still allow a deduction.  

You can enter your expenses by going to Deductions and Credits > Employment Expenses > Job-related Expenses.  Your Federal return will not be affected by these entries, but if your state allows the deduction, then the information you enter will be transferred to your state return.

For more information, see the following TurboTax help article:

Can employees deduct any job-related expenses?