There is conflicting info on whether I should deduct 50% or 100% of meal expenses as a consultant - client reimburses 100% and is included in box 7 of 1099. Pls Clarify.

[JulieR]

You will be able to take the 100% deduction for these meals since they were a reimbursed by your client. When you click "Add expenses for this work", scroll down until you see "Meals (100% limit) and click the button, then click "Continue" at the bottom of the page. You'll then be able to enter the 100% deductible meals there.

[Edited 03.24.2019 | 5:20 PM pst]

[hannip]

This doesn't answer my question really.  Is my case the exception to the 50% rule?  If I receive 100% reimbursement from my client and I fully report all of my expenses and keep detailed records, doesn't that put the burden of the 50% on the client and not the consultant?

[JulieR]

Please see the edited answer.  Under your circumstances, you do qualify to take the meals deduction at 100%.  I am glad we were able to clarify this issue.

[hannip]

Okay, then why is there an 100% meal deduction category in Turbotax online with the following help information:
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When to deduct 100% for meals
There are a few examples of when you can deduct 100% of your work-related meals:

-Meal expenses for a company picnic or holiday party
-Food made available to the public for free
-Reimbursed expenses to employees and contractors that is included on the W-2 or Form 1099 as taxable compensation
---

Please explain how the last example doesn't apply in my case.  This is what I mean about conflicting information.  

[JulieR]

Please see the edited answer.

[TaxGuyBill]

If you submit your exact expenses and that exact amount is reimbursed (or they pay you a meal "per diem" based on the number of days that you submitted to them that you were out-of-town), that is under an "Accountable Plan".  That means it should be tax-free to you and your client is subject to the 50% limit.  Your client should NOT have included that on your 1099-MISC.  To counter-act the incorrectly 1099-MISC, you would enter it as a 100% deduction.

On the other hand, if they just reimbursed a rough 'flat' amount not based on much, then that is NOT under an "Accountable Plan", and your client properly added that to the 1099-MISC, and YOU would be subject to the 50% limit.

[hannip]

Thanks TaxGuyBill, I submit the meal expenses and they reimburse up to the acceptable limit for meals.  I verified that what I received from both pay and expense reimbursement is what was on my 1099.  So maybe they put it on my 1099 in error?