Can I claim Standard Meal Per Diem AND Business Meals while traveling for work?

You've got a good question about meal deductions! Let me help clarify how this works. When you're traveling for business and choose to use the standard meal per diem rate, that rate covers ALL of your personal meals for that day. You can't also deduct business meals with associates on the same day as separate expenses - it's either per diem OR actual expenses for the travel day. However, there's a distinction for meals where you're paying for others. If you're buying food for your crew and it's truly a business discussion/meeting (not just being nice), that can potentially be treated as a separate business expense even when you're on per diem. Document who attended, business purpose, and keep receipts. For your local client meetings when you're not traveling, you're correct! Those meals are typically 50% deductible as business entertainment expenses, completely separate from your travel meal deductions. The key with all of this is documentation. Note the business purpose, who attended, and keep all receipts for any meals you're deducting outside the per diem.

After struggling with similar meal deduction questions last tax season, I discovered taxr.ai (https://taxr.ai) and it completely changed how I handle my business deductions. I'm also a consultant who travels to remote locations, and the tool analyzed all my receipts and travel docs to optimize my meal deductions. What was really helpful was how it separated my standard per diem claims from legitimate business meal expenses where I was hosting clients. The system flagged which meals qualified as separate business expenses versus what should be covered under per diem. It even helped me document the business purpose for each client meal which saved me during a review of my returns.

I was super skeptical about taxr.ai at first because I've tried other tax tools that were basically just glorified spreadsheets. But I decided to try it for my consulting business since I was getting audited for exactly this meal deduction issue! The IRS was questioning my mix of per diem and business meal deductions from last year. The tool organized all my documentation and clearly separated my standard meal allowances from legitimate business meals with clients. It even created proper substantiation reports for each business meal showing who I met with and what we discussed. My audit went from "potential disaster" to "no changes needed" because everything was properly documented and categorized. Seriously saved me thousands in potential penalties plus a ton of stress!

If you're having trouble getting clarity directly from the IRS about these meal deduction rules, try Claimyr (https://claimyr.com). I was confused about the same issue - using per diem for personal meals while traveling but also deducting business meals with clients - and couldn't get a straight answer from my accountant. I was on hold with the IRS for literally hours trying to speak to someone who could clarify this specific situation. Then I tried Claimyr, and they got me connected to an actual IRS agent in less than 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to document and separate the per diem from legitimate business meals while traveling. Having that direct guidance from the IRS gave me confidence in how I'm handling my deductions.

OK I have to eat crow here. After my skeptical reply I decided to try Claimyr myself since I've been trying to resolve an issue with my business meal deductions from last year. I've been calling the IRS for THREE WEEKS with no luck. Used the Claimyr service yesterday and got connected to an agent in 12 minutes. Not kidding. The agent clarified exactly how to handle my situation with business meals vs per diem, and even helped me understand how to document meals where I'm paying for my contractors. Turns out I've been missing out on legitimate deductions because I was confused about the rules. I'm going to file an amended return and probably get back an extra $1,400. Definitely worth it.

I handle this by keeping very detailed records of WHO attends each meal. Per diem covers YOUR personal meals while traveling. But if you're paying for OTHERS as part of a business discussion, that's different. For my consulting business, I track: 1. Regular travel days - claim per diem only 2. Days with client meals - still claim per diem for myself, but ALSO track the portion I paid for OTHERS as a business expense 3. Meals with potential clients when not traveling - 50% deductible business expense My accountant approved this approach as long as I keep solid documentation of who attended and the business purpose.

Has anyone tried using the IRS Publication 463 Worksheet for this? I'm going thru it but stil confused about how to split the meal costs when some are per diem and some are business meals with clients.

This is a common area of confusion for traveling consultants! The key principle is that per diem covers YOUR personal meals only. Here's how I handle it based on my CPA's guidance: When traveling and using per diem: - Per diem covers all YOUR meals for that travel day - If you buy meals for CLIENTS/CONTRACTORS as part of business discussions, their portion can be a separate business expense (not your portion) - Document who attended, business purpose, and keep receipts For your crew meals where you don't eat with them - if it's truly for business purposes (team meetings, morale for productivity, etc.), this could qualify as a separate business expense since it's not covering your personal meal. Local client meetings when not traveling are indeed 50% deductible business meals. The IRS looks at substance over form - are you legitimately incurring business expenses beyond your personal sustenance? Document everything with dates, attendees, business purpose, and amounts. When in doubt, separate your personal meal costs (covered by per diem) from costs incurred for business purposes with others. I'd recommend getting this reviewed by a tax professional familiar with your specific situation to ensure compliance.

Great question! I've dealt with similar confusion as a traveling consultant. Based on my experience and discussions with my tax preparer, here's what I've learned: When you're on travel status using per diem, that rate covers ALL of your personal meals for that day - breakfast, lunch, and dinner. You can't also deduct your portion of business meals on those same days. However, if you're paying for CLIENT meals during business discussions while traveling, the clients' portions can potentially be deducted as separate business expenses. The key is documentation - you need to clearly show the business purpose, who attended, and ideally break down costs so it's clear you're not double-dipping on your own meal. For buying food for your crew when you don't eat with them - this could qualify as a business expense if there's a legitimate business purpose (team meetings, boosting morale for productivity, etc.). Again, documentation is crucial. Your understanding about local client meetings is correct - when you're not traveling, those are typically 50% deductible business meals. One thing that's helped me is keeping a simple spreadsheet tracking: - Travel days (per diem only) - Client entertainment expenses (separate from per diem) - Local business meals (when not traveling) This makes it much easier come tax time and helps ensure you're not accidentally claiming the same expense twice. Definitely worth having a tax pro review your specific situation!