Can freelancers deduct business meals? The 50% rule

"Is lunch deductible?" is one of the most common freelancer tax questions, and the answer depends on who was at the table and what you talked about. This post covers the rules in IRS Publication 463 and 26 U.S.C. § 274, with examples. For the full list of deductions, see the freelance tax deductions checklist; more topics in our taxes and expenses hub.

When a meal counts as a business meal

• It's an ordinary and necessary expense of your business.
• It isn't lavish or extravagant under the circumstances.
• You (or an employee) are present.
• It's with a current or prospective client, customer, contractor, consultant or similar business contact.
• If it's at an entertainment event, the food is bought separately or shown separately on the bill.

50%, 100% or nothing: common cases

Worked example: a month of meals

Records to keep for each meal

1. The receipt, showing the restaurant's name and location, the date, the number of people and the amount. Publication 463 expects one for any meal of $75 or more.
2. Who attended and their business relationship to you: "Ana Ruiz, marketing lead at Harbor Coffee (client)".
3. The business purpose: "Discussed Q3 campaign scope".
4. For travel meals: the trip's dates, destination and business reason.
5. Write the note the same day. A note written in April for a meal in May of last year is weak evidence.

Travel meals and the per diem option

When you travel overnight for work, your own meals are deductible at 50% even if you eat alone. Instead of saving every meal receipt, a self-employed person can use the federal meals and incidental expenses (M&IE) per diem rate for the location, then apply the 50% limit. You still need records of the time, place and business purpose of the trip. Keep the hotel receipt for lodging.

Common mistakes

• Deducting 100% of restaurant meals. That temporary rule covered 2021 and 2022 only.
• Deducting entertainment because business came up. Since 2018, entertainment isn't deductible even with a client.
• Treating every coffee as a business meal. Without a business contact present, it's personal.
• Splitting the bill and deducting everyone's share. You deduct 50% of what you paid.
• Mixing meals into "supplies" or "office" to avoid the 50% limit.

Doing this in SoloWOS

In SoloWOS Expenses, log each meal in the Meals category at the full amount, attach the receipt photo and use the description for the who and why ("Ana Ruiz, Harbor Coffee, Q3 scope"). Check the deductible box for business meals and leave it unchecked for personal ones you logged by mistake. The monthly report counts meals at full cost, so apply the 50% limit when you or your accountant fill Schedule C from the CSV export. You can log business expenses with receipts from your phone right after the meal. How long to keep receipts covers when you can clear them out.

This is general information about federal rules in IRS Publication 463 (2025), not tax advice. States can treat meals differently, and unusual cases (employees, meals as compensation, client events) have their own rules.