Meal Deductions in 2022
Depending on the industry you’re in, you might be used to taking clients out for lunch or dinner. This may be a familiar tax write-off to you, but don’t forget the changes made last year. The Consolidated Appropriations Act changed the deduction for business-related meals from 50 to 100 percent. This change is in effect until December 31, 2022, to benefit the restaurant industry after the devastation of the pandemic.
Thanks to this change, you can receive the full 100 percent tax deduction for business-related meals. However, there are limits to how this can be applied. The change only applies to meals from restaurants. Pre-packaged items from places like grocery or convenience stores do not qualify. It is also required for the employer or employee to be present at the meal, and it must not be considered a “lavish or extravagant” expense.
If you plan on having many business-related meals this year, be sure they meet these requirements so you can benefit from the increased deduction. Do you need further assistance with your taxes or finances? Contact AMJ at 919-368-1877 to get started today!
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