Can you deduct meals while traveling for business?

Yes—generally, business travel meals are deductible in the U.S., but most meal deductions are limited to 50% of the eligible cost.

When travel meals are usually deductible

A meal expense generally needs to be:

• While traveling away from your tax home for business
• Long enough to require sleep or rest
• Ordinary and necessary for the trip, not lavish or extravagant
• Properly documented with the business purpose and amount

Common ways to calculate it

• Actual expense method: Deduct 50% of the actual meal cost, plus applicable tax and tip if they are part of the meal expense.
• Per diem method: In some cases, you may be able to use a federal meal-and-incidental-expenses rate instead of tracking every meal receipt, but the exact rules and current rates depend on the year and situation, so check the current IRS guidance.

What to keep for records

Keep records of:

• Date and place of the meal
• Amount spent
• Business purpose of the travel or meal
• Receipts or other supporting documentation

Important caveat

Meal deduction rules can depend on your exact situation, including whether you’re self-employed, an employee, or traveling internationally. For meals and per diem, the IRS rules can change, so it’s smart to check the current IRS guidance or a tax professional before filing.