Meals & Entertainment Tax Overview
Overview
Meal Allowance %
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Regular: 50%
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2021 & 2022: 100% if provided by a restaurant
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Transportation Workers: 80%
Standard Meal Allowance (Meals & Incidental Expenses)
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Regular (depending on location):
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2023 (effective 10/1/22): $59 - $79
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2024 (effective 10/1/23): $59 - $79
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2025 (effective 10/1/24): $74 - $86
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Per Diems by location at www.gsa.gov/perdiem
Simplified Per Diem Rates – High-Low Method – Employer reimbursement per diem for substantiation purposes:
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Low CONUS:
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2023, effective 10/1/22 – $204 ($64 is meals)
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2024, effective 10/1/23 – $214 ($64 is meals)
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2025, effective 10/1/24 – $225 ($74 is meals)
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High CONUS:
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2023, effective 10/1/22 - $297 ($74 is meals)
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2024, effective 10/1/23 - $309 ($74 is meals)
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2025, effective 10/1/24 - $319 ($86 is meals)
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Employees – Employee business expenses suspended for years 2018 through 2025.
Self-Employed - May use the Standard Meal Allowance for business meals but may NOT use lodging per diem (actual expense and documentation required)
Business Entertainment – Not deductible through 2025.
Business Meals – 50% - Not allowed for employees thru 2025.
Related IRC and IRS Publications and Forms
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Domestic Per Diem Rates (General Services Administration) http://www.gsa.gov/perdiem
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Foreign Per Diem Rates (State Department) - http://aoprals.state.gov/content.asp?content_id=184&menu_id=89
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Pub 535 – Business Expenses
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IRC Sec 274
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Notice 2018-76 - Expenses for Business Meals Under Sec 274 of the Internal Revenue Code