Per Diem or M&IE

[melinda]

I am self employed web developer with a LLC.  I am confused what to claim for Meal Expenses when out of town on business.  Do I claim the per diem amount  for the city I am visiting or do I claim the M&IE deduction instead?

Thank you for any help.

Meliinda

[Opus 17 · Accepted solution]

The official federal per diem rates include separate amounts for lodging and M&IE (meals and incidental expenses).  When traveling on business, your tax deduction for business expenses is your actual lodging expense (which  you prove with receipts) plus either 50% of the M&IE rate or 50% of your actual meals expenses.  (If you use the M&IE rate you don’t need meals receipts.)   I believe TurboTax does the 50% calculation for you so you will enter the entire amount and let the program do the 50%.

[melinda]

Thank you for the information!

Melinda

[ColeenD3]

You also have the choice of using the actual amount you spend on meals.