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tco0243
Returning Member

Can a 1099-NEC contractor, deduct 100% or 50% of meal costs while traveling (eating alone)? 100% of my meal costs were reimbursed by the client and included in 1099.

These meals were eating alone while working and traveling for the client, not with the client and were not part of a business discussion.  The client agreed to reimburse me for meals while I traveled, and I submitted separate detail documentation for the meals, but the 1099-NEC provided by the client only had one box completed, "box 1 non-employee compensation", and it include one lump sum with my wages and travel meal expenses embedded in the compensation.
2 Replies
AmeliesUncle
Level 11

Can a 1099-NEC contractor, deduct 100% or 50% of meal costs while traveling (eating alone)? 100% of my meal costs were reimbursed by the client and included in 1099.


@tco0243 wrote:
The client agreed to reimburse me for meals while I traveled, and I submitted separate detail documentation for the meals, 

 

The client did it wrong.  That is set up as an Accountable Plan, which means it should NOT be on the 1099-NEC.

 

I would take 100% of the deduction because the 50% limitation should be on the client, not you.

 

tco0243
Returning Member

Can a 1099-NEC contractor, deduct 100% or 50% of meal costs while traveling (eating alone)? 100% of my meal costs were reimbursed by the client and included in 1099.

I agree, but I am worried in an IRS audit they won't care what the client should have done, they will want me to do it correctly on my taxes. I separately itemized meal expenses with receipts to the client, as well as hours worked, and they took the value of the hours, the sum of the meal expenses, and sent me one 1099-NEC with one lump sum that included 100% reimbursement for my meals, but it  made it look like I earned more than I did.

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