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The Basics on Business Meal Expenses Deductions

Audio version available here:

Length: approx. 1 min. 10 sec.


Welcome to the XQ CPA Tax Day Checklist, a series sharing tax tips every day leading up to the April 15th tax filing deadline. Today, we will be discussing business meal deductions. Business meals can reduce your tax liability if deducted properly, though the IRS has new strict rules around this practice for 2023, so stay tuned.


Starting 2023, the IRS changed the rules around business meals and entertainment expenses. “Activities generally considered entertainment, amusement, or recreation” are no longer deductible, though few exceptions may apply.


As for business meal expenses, since the Taxpayer Certainty and Disaster Tax Relief Act of 2020 has expired, you can no longer enjoy a 100% deduction. The rule has gone back to 50%, and the meals and drinks must not be considered “lavish and extravagant” to IRS standards.


When claiming business meal expenses on your tax return, you will need to have receipts/invoices to provide substantiation. Simply estimating expenses can get you audited, and if you are unable to prove the exact expense you estimated, penalties may be incurred.


Want more tax tips? XQ CPA has all the latest and greatest tax tips and business news for 2023 tax filing. Tune in tomorrow to learn about business travel expenses.


Phone: 832-295-3353


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