Can I write off meals on my taxes?

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As part of the Consolidated Appropriations Act signed into law on December 27, 2020, the deductibility of meals is changing. Food and beverages will be 100% deductible if purchased from a restaurant in 2021 and 2022.

Here are some examples:

Fully deductible meals and entertainment

Here are some common examples of 100% deductible meals and entertainment expenses:

• A company-wide holiday party
• Food and drinks provided free of charge for the public
• Food included as taxable compensation to employees and included on the W-2

50% deductible expenses

Here are some of the most common 50% deductible expenses (for 2021 and 2022, they are 100% deductible if purchased from a restaurant):

• A meal with a client where work is discussed (that isn’t lavish)
• Employee meals at a conference, above and beyond the ticket price
• Employee meals while traveling (here’s how the IRS defines “travel”)
• Treating a few employees to a meal (but if it’s at least half of all employees, it’s 100 percent deductible)
• Food for a board meeting