Expenses Considered as Meals When Traveling for Business

Traveling for business can be a dynamic and rewarding experience, but it often comes with a series of unexpected costs. One common question among business travelers is what meals and related expenses can be considered legitimate business expenses. In this guide, we'll explore the typical meal expenses that can be claimed, along with advice on how to manage and document them effectively.

The Scope of Business Meal Expenses

When away from home on business, you're likely to find yourself consuming food and drinks at various mealtimes. These may range from a simple cup of coffee to a full English or American breakfast, a healthy snack from a grocery store, a sandwich from a place like Subway, or even a combination of seafood and meat (surf and turf) for a business lunch or dinner. Reasonable beverages and a light snack before bed might also be included, perhaps even a dessert like an ice cream cone.

Reasonable Meal Costs According to the IRS

The IRS generally considers most typical meal expenses as business deductions, which can be claimed under the business travel expenses category. However, it is crucial to keep detailed receipts and to write down any tips on these receipts. This practice not only helps in claiming the expenses but also serves as a record for potential audits.

Company Requirements and Policies

When it comes to meal expenses, companies often have their own internal policies and limits. These policies are in place to prevent employees from making unreasonable claims and to maintain equitable practices across the organization. For example, higher-priced items may not be allowable, and companies might have specific rules for different levels of employees.

It's not uncommon for companies to have a set allowance per day for meal expenses. This allowance might be based on the cost of a typical business meal in that particular city. Employees should familiarize themselves with these limits to avoid any discrepancies with their financial reports.

Practical Tips for Managing Meal Expenses

Stay within budget: Even if the company has a higher daily allowance, it's important to stay within the bounds of reason. Expenses that are too high can raise red flags and potentially cause issues when filing your financial reports. Choose affordable options: Opt for economy restaurants and fast-food options when possible. This will help ensure that your meal expenses remain within the reasonable and allowed limits. Be selective with beverages: While the occasional coffee or tea is acceptable, avoid allowing expenses for premium beverages to escalate. Stick to reasonable choices to keep costs in check. Avoid alcohol: It's generally a good idea to avoid claiming any alcoholic beverages as business expenses. While some companies may allow it, it's often best to err on the side of caution and avoid complications.

Conclusion and Final Tips

In conclusion, understanding what can and cannot be claimed as a business meal expense is crucial for any frequent traveler. By staying within the reasonable limits set by the IRS and the company, and by maintaining accurate and detailed records, you can effectively manage your meal expenses and ensure that you are eligible for all permissible deductions.

Remember, it's always better to err on the side of caution with your claims. While it might be tempting to pad your receipts or claim higher amounts, it's far better to come in below the limits than to face potential penalties or issues during an audit. By adhering to these guidelines, you'll ensure that your business travel expenses are both legitimate and compliant.