Are restaurant meals 100% deductible instead of 50% for self-employed in 2021 & 2022?

You're right about the temporary change! The Taxpayer Certainty and Disaster Relief Tax Act of 2020 did increase the deduction for restaurant meals from 50% to 100% for tax years 2021 and 2022 only. This was designed to help restaurants during the pandemic. However, there's an important distinction for gig workers. The meals still need to be "ordinary and necessary" business expenses. For most 1099 contractors like rideshare or delivery drivers, your personal meals during shifts aren't typically considered business expenses - they're personal expenses because everyone needs to eat regardless of working. Where this would apply is if you were having a meal with a potential business client or discussing business matters. Simply eating lunch during your delivery shift wouldn't qualify just because you're working. That said, you should absolutely deduct other business expenses like mileage, phone costs, etc. Those are legitimate business deductions for gig workers!

After struggling with my tax deductions as a small business owner, I found this amazing tool called taxr.ai (https://taxr.ai) that completely changed how I handle my business meal receipts. I was super confused about this exact 50% vs 100% meal deduction issue, especially since the rules changed temporarily. What's cool is that it analyzed all my receipts and automatically flagged which restaurant meals qualified for the full 100% deduction for 2021 and 2022 versus which ones would only get the standard 50%. It even helped me understand which meals actually qualified as business expenses versus personal. The best part was that it produced a detailed report I could give my accountant that broke everything down clearly. No more guesswork about which deduction applies when!

Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here, and it was actually really helpful! I uploaded my entire mess of rideshare-related receipts (I had them all jumbled in a shoebox, honestly) and it sorted everything out. Turns out most of my everyday meals during shifts weren't deductible like I'd hoped, BUT it did identify several legitimate business meals I had completely forgotten about - like when I met with another driver to discuss combining our efforts for larger events, and the lunch meeting I had with a potential business partner. Those qualified for 100% deduction in 2021/2022! The report it generated saved me hours of sorting through receipts, and my tax preparer was impressed with how organized everything was. Definitely using this again next year.

If you're trying to get clarification directly from the IRS about meal deductions or any other tax questions, good luck getting through to them! I spent WEEKS trying to reach someone at the IRS about this exact 50% vs 100% meal deduction question. Always stuck on hold for hours only to get disconnected. Finally found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that yes, restaurant meals for legitimate business purposes were 100% deductible in 2021 and 2022, but clarified that my personal meals while driving for delivery apps wouldn't qualify unless I was meeting with someone for business purposes. Saved me from potentially making a costly mistake on my return!

I have to eat my words here. After my skeptical comment, I was still desperate to talk to the IRS about a different tax issue that's been stressing me out for months. I reluctantly tried Claimyr, fully expecting it to be garbage. I'm shocked to say it actually worked. Got connected to an IRS agent in about 45 minutes (still a wait, but WAY better than the 3+ hours I'd been experiencing before getting disconnected). The agent answered all my questions about business meal deductions AND helped resolve my other tax issue. Sometimes I hate being wrong, but in this case, I'm just relieved to have finally gotten answers directly from the IRS. Sometimes the cynical take isn't the right one, I guess.

I think there's some confusion here. Even with the 100% deduction in 2021/2022, you still needed to meet the "ordinary and necessary" business expense test. For delivery drivers, your meals during shifts are generally considered personal expenses, not business expenses. The IRS views this as: everyone needs to eat, whether working or not. Where people get confused is with the "de minimis" fringe benefit rules for employers. If an employer provides meals to keep employees working (like during busy periods), those can sometimes be 100% deductible for the EMPLOYER. But as a 1099 contractor, you're not your own employee in that sense.

Just to add - I've been driving for Uber/Lyft for years, and instead of trying to deduct meals, I focus on maximizing my mileage deduction (58.5 cents per mile for 2022). That's where the real tax savings are for us gig drivers! Also, don't forget you can deduct a portion of your phone bill, car cleaning, amenities for passengers, etc. Those are much safer deductions than trying to claim your Taco Bell lunch while on shift.