What Qualifies For The 100% Meal Deduction?

  • John A. Osborne
  • Nov 25, 2022
Small Business Insurance Kansas

As a business owner or employee, you might wonder what qualifies for the 100% meal deduction. This deduction can help reduce your tax bill and is available for certain business-related expenses. However, you need to know the rules and requirements to ensure that you can claim this deduction legally. In this article, we’ll explore what qualifies for the 100% meal deduction and provide some tips to help you maximize your tax savings.

What is the 100% Meal Deduction?

The 100% meal deduction allows businesses to deduct the full cost of meals that are related to business activities. This deduction was introduced as part of the CARES Act in 2020 to support businesses that have been affected by the COVID-19 pandemic. The deduction is available for expenses incurred between January 1, 2021, and December 31, 2022.

However, there are some limitations to this deduction. For example, the meal must be provided by a restaurant and cannot be a home-cooked meal or a meal that is provided by the employer. Additionally, the meal must be related to business activities, such as a meeting with a client or a business conference.

What Qualifies for the 100% Meal Deduction?

Now that you know what the 100% meal deduction is, let’s explore what qualifies for this deduction. Here are some examples of expenses that may qualify:

  • Meals provided during business travel
  • Meals provided during business meetings or conferences
  • Meals provided to employees during work hours
  • Meals provided to clients or customers
  • Meals provided during business-related entertainment, such as a sporting event

It’s important to note that the meal must be related to business activities, and the expense must be reasonable and necessary. For example, if you take a client out for an expensive dinner at a five-star restaurant, the expense may not be considered reasonable and necessary.

Maximizing Your Tax Savings

If you want to maximize your tax savings, there are a few things you can do:

  • Keep detailed records and receipts of all meal expenses
  • Separate business and personal expenses to ensure that you only deduct business-related meals
  • Take advantage of technology, such as apps that track expenses, to simplify record-keeping
  • Consult with a tax professional to ensure that you are claiming the deduction correctly


The 100% meal deduction can be a valuable tax-saving tool for businesses. However, it’s important to understand what qualifies for this deduction and to keep detailed records to ensure that you are claiming the deduction correctly. By following the tips outlined in this article, you can maximize your tax savings and ensure that you are in compliance with the rules and regulations.

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