Expense for Business Meals 2023 Changes

Beginning January 1, 2023, tax deductions for meals will revert to the tax rules under the Tax Cuts and Jobs Act (TCJA).  The Consolidated Appropriations Act (CAA) temporarily changed these deductions for the 2021 and 2022 tax years.  Starting in 2023, these meals deductions will be reduced from 100% to 50%.  The following changes will take place in 2023:

  • Client Business Meals: 50% deductible if they are ordinary and necessary in carrying on business, provided to a current or potential client or consultant, and are not lavish or extravagant
  • Entertainment Related Meals: 50% deductible if charges are separately stated from entertainment costs; otherwise, no deduction
  • Meals Provided for the Convenience of Employer: 50% deductible
  • Meals Provided to Employees Occasionally and Overtime Employee meals: 50% deductible
  • Meals in Office during meetings of employees, stockholders, agents or directors: 50% deductible
  • Meals During Business Travel: 50% deductible
For more information, please find links to the IRS websites below: