Are Meals Tax Deductible in 2025?

Are Meals Tax-Deductible in 2025?

As a business owner, you want to save as much on taxes as humanly possible.

One of the easiest ways to do that? Deducting meals.

Yes—meals are still deductible in 2025.

But you’d be surprised how many business owners skip out on deducting meals. Why?

They’re confused about what actually qualifies…
The IRS constantly changes the rules around meal deduction…
They’re also scared the IRS will come knocking if they claim it wrong…

But avoiding this deduction just to “play it safe”? That’s costing you big.

Think about how often you eat out during the year.

Client lunches, team dinners, travel food, Starbucks runs between meetings… it adds up.

If you don’t write those off, you’re leaving hundreds (if not thousands) of dollars on the table.

So let’s fix that.

In this post, you’ll learn:

1️⃣ What counts as a deductible meal

2️⃣ How much you can actually deduct

3️⃣ And how to stay audit-proof while doing it

What Counts as a Deductible Meal in 2025?

Here’s the good news: Meals are tax-deductible in 2025. And there are a LOT of meals you can deduct. As long as the meal has a clear business purpose.

Let’s go through the main ones:

• ✅ Meals with clients or prospects
• ✅ Meals while traveling for business
• ✅ Meals with employees or team members
• ✅ Food at conferences or networking events
• ✅ Company-wide parties or celebrations

These are all fair game.

What doesn’t count? Personal meals.

Grabbing lunch with a friend just because? Not deductible. Getting takeout with your cousin where business never even comes up? That’s a no.

And while the IRS doesn’t expect you to live off fast food, they do draw the line at “lavish or extravagant.” So yeah… gold-leaf sushi probably isn’t going to fly.

How Much of That Meal Can You Deduct?

This is where it gets tricky, because not all meals are treated equally.

Thanks to the expiration of the 2017 Tax Cuts and Jobs Act, the 100% meal deduction we saw in prior years is mostly gone.

Here’s what still qualifies for 100% deduction:

• ✅ Food provided for company holiday parties
• ✅ Meals and snacks offered to the public (like free coffee at your event booth)
• ✅ Food is considered a de minimis fringe benefit (like coffee or snacks in the office)
• ✅ Dinner for employees working late
• ✅ Meals that are included in taxable employee compensation

Pretty much everything else? 50% deductible.

So let’s say you take a client out for dinner and spend $200—only $100 of that counts as a business deduction. Still a win, but you get less tax savings now.

How to Avoid an Audit While Claiming Meal Expenses in 2025

The key to staying in the IRS’s good graces? Documentation.

If you’re going to claim a meal expense, you need to back it up.

That means keeping a simple record of:

• • The receipt
• • Who you ate with
• • The business purpose
• • The date and total amount

You don’t need a shoebox full of crumpled receipts. Just snap a photo, jot a quick note in your bookkeeping app (Expensify, QuickBooks, whatever you use), and keep it moving.

And please, don’t mix personal and business meals.

Grabbing a burger with a buddy and vaguely mentioning your business doesn’t cut it. But a strategy session over lunch with your marketing team? That’s a yes.

The Truth About ‘Are Meals Tax Deductible in 2025?’

Here’s the bottom line: If the meal was legit, had a clear business purpose, and you documented it? You’re fine. The IRS isn’t busting down doors over a few Chipotle runs.

Tracking your meal deductions might seem small at first—but over a full year? The savings stack up fast.

This is money that could be reinvested into your business, used to pay down debt, or even fund a well-earned vacation.

By staying consistent, organized, and intentional about your write-offs, you’re building smarter financial habits that actually grow your wealth—not shrink it.

Where to Claim This Deduction on Your Tax Return

Where you report your meal expenses depends on your business structure. Here’s a quick cheat sheet:

• • Sole Proprietors / Single-Member LLCs
  Schedule C (Form 1040), Line 24b – Meals and entertainment

• • S-Corporations
  Form 1120-S, Page 1, Line 19 – Other deductions

• • C-Corporations
  Form 1120, Line 26 – Other deductions

If you’re using a tax professional, they’ll know where to slot it in. But it’s good to know this stuff yourself too.

The Truth About ‘Are Meals Tax Deductible in 2025?’

So are meals tax-deductible in 2025? Yes—but only if you do it right.

As long as the meal is tied to your business, properly documented, and not mixed with personal expenses, you can and should claim it.

Avoiding this deduction out of fear or confusion is costing you more than you think.

This article is just the beginning. There are dozens of ways to legally and ethically reduce your tax bill—and we’re here to help you uncover them.

Click here to explore more tax-saving strategies on our blog.

Need help from a vetted tax pro?

Click here to connect with one through our private network.

Frequently Asked Questions (FAQ)

1. Are meals still deductible in 2025?
Yes, business meals are still deductible in 2025. But not all meals qualify, and not all are 100% deductible. The key is making sure the meal has a legitimate business purpose and is properly documented.

2. What qualifies as a deductible business meal?
Meals that involve clients, prospects, employees, or business travel usually count. Examples include:

• Taking a client to lunch
• Buying coffee during a business trip
• Hosting a team dinner or company party
• Providing snacks in the office

3. Can I deduct personal meals if I briefly talk about business?
Nope. The IRS is pretty clear—if the primary reason for the meal wasn’t business, it’s not deductible. A casual meal with a friend, where business comes up, doesn’t count. A strategy lunch with your team does.

4. Are all meals 100% deductible?
Not anymore. Most meals are only 50% deductible. The 100% deduction applies to:

• Company holiday parties
• Meals provided to the public (e.g., at an event)
• Office snacks and drinks (fringe benefits)
• Dinner for employees working late
• Meals included in taxable compensation

5. What does “lavish or extravagant” mean to the IRS?
Basically, don’t go overboard. A $20 lunch? Fine. A $2,000 bottle service dinner? Probably not. The IRS doesn’t expect you to eat off the value menu, but gold-plated sushi might raise flags.

6. Can I deduct meals when I travel for business?
Yes. Meals while traveling for business are generally 50% deductible—as long as the travel itself is business-related and you document everything properly.

7. Do I need to keep physical receipts?
Not necessarily. A digital copy (photo or scan) is fine, as long as it’s clear and includes all the key info (date, amount, location, etc.).

8. Is it worth tracking all these small meal expenses?
Absolutely. Over time, those “small” deductions can add up to hundreds or even thousands in tax savings. That’s money you can reinvest back into your business or your life.