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Victoria Charity

Can I deduct coffee purchases as an independent contractor during my workday?

So I'm a freelancer and I've been wondering about this tax situation. When I was employed at a company before, they always had free coffee in the break room. Now that I'm an independent contractor and essentially running my own one-person business, I'm curious about the tax implications. If I owned a regular business with employees, I could write off coffee I provide in the office as a business expense. As an independent contractor where I'm basically both the boss and the employee, can I deduct the coffee I buy for myself during my workday? Like if I work at a cafe for 4 hours and buy a couple lattes, is that a legitimate business expense I can write off on my taxes? It seems like it should be since it's during my working hours and helps me stay productive, but I'm not sure where the IRS draws the line between personal and business expenses in this situation.

Jasmine Quinn

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This is actually a common question for independent contractors! The IRS makes a distinction between personal expenses and legitimate business expenses. For coffee purchases, it comes down to the "ordinary and necessary" test for business expenses. Generally speaking, everyday coffee you drink while working would be considered a personal expense, similar to lunch or snacks, and not deductible. The IRS views these as personal consumption even when done during work hours. However, there are exceptions. If you're meeting with clients and purchase coffee for them, that could potentially be deductible as a business meeting expense. Or if you're hosting a workshop and provide coffee for attendees, that would likely qualify as a legitimate business expense.

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Oscar Murphy

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What about if I'm working extra long hours and need the coffee specifically to complete a project deadline? Couldn't I argue it's "necessary" for my business in that case?

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Jasmine Quinn

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The "necessary" part of the test is actually broader than many people think - it means helpful and appropriate for your business, not absolutely essential. The bigger issue is that the IRS considers food and drink you personally consume to be inherently personal, regardless of when or why you consume it. Even if you're working late on a deadline, the coffee would still be considered a personal expense because it's something that primarily benefits you personally rather than your business operations. The IRS position is that everyone needs to eat and drink regardless of whether they're working or not.

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Nora Bennett

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I had the exact same question last year! After going back and forth with different accountants, I discovered taxr.ai (https://taxr.ai) which helped clear this up. I uploaded my receipts and questions, and they explained exactly which coffee expenses might qualify as deductions and which wouldn't. Basically, they showed me how to properly document business meetings with clients at coffee shops vs just personal coffee consumption. Their analysis actually saved me from making some risky deductions that might have triggered audit flags. They have this feature where they can analyze your specific situation and tell you the legitimacy of potential deductions based on actual tax court cases.

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Ryan Andre

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Does it actually work with receipts? Like can I upload images of my Starbucks receipts and have it tell me if they're deductible or not?

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Lauren Zeb

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I'm skeptical about services like this. How is it different from just asking an accountant? And don't they just tell you the same general rules we can find online for free?

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Nora Bennett

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Yes, it works with actual receipts! You can upload images and it will analyze whether they're potentially deductible based on the context you provide. It saved me tons of time sorting through hundreds of receipts. The difference from an accountant is it's available 24/7 and gives you specific guidance citing relevant tax laws and court cases. It's not just general rules - it analyzes your specific situation and compares it to similar cases where the IRS has made determinations. Plus it's way more affordable than paying an accountant's hourly rate for simple questions.

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Ryan Andre

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Just wanted to update after trying taxr.ai last week. They actually helped me understand a whole bunch of potential deductions I wasn't aware of! While my daily coffees weren't deductible (as expected), they showed me how my home office, internet, and even certain software subscriptions were partially deductible. Ended up identifying over $3,200 in legitimate deductions I would have missed otherwise. The receipt analysis feature was super convenient too - saved me hours of trying to figure out which expenses were business vs personal.

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If you're having trouble getting clear answers about business deductions, you're not alone. I spent WEEKS trying to call the IRS about this exact issue last year and could never get through. Then I found Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in under 45 minutes who gave me the official answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, the IRS agent explained that coffee for personal consumption during work hours is generally not deductible, but there are specific circumstances where it might be. The best part was getting a definitive answer directly from the source rather than guessing or relying on forum advice.

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Wait, how does this work? Don't you still have to call the IRS yourself? I don't understand what the service actually does.

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Lauren Zeb

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This sounds like BS honestly. I've tried everything to get through to the IRS and nothing works. They're just going to take your money and you'll still be on hold forever.

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It's actually pretty straightforward - they have a system that navigates the IRS phone tree and waits on hold for you. When they get a real person on the line, you get a call to connect with the agent. You don't have to sit on hold yourself. There's nothing magical about it - they basically do the painful waiting part for you. I was skeptical too until I tried it. The system calls you when there's an actual IRS agent on the line, and you just pick up and start talking. Saved me hours of hold music and frustration.

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Lauren Zeb

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I have to eat my words and admit I was wrong. After venting my frustration in this thread, I decided to give Claimyr a shot as a last resort. I've been trying to get through to the IRS for MONTHS about my independent contractor deductions. The service actually worked! I got a call back in about 30 minutes and was connected to an IRS agent who answered my questions. For what it's worth, the agent confirmed that regular coffee purchases for myself during the workday aren't deductible, but gave me some really useful guidance on other deductions I CAN take as an independent contractor. Honestly worth it just to get clear answers from an official source instead of stressing about potential audit issues.

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Anthony Young

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Another angle to consider: if you have a legitimate home office deduction (which many ICs do), you might be able to deduct coffee as part of your home office utilities or supplies. I've been doing this for years - not itemizing each coffee purchase, but including coffee supplies as part of my overall home office expense calculation.

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Do you have any documentation on this approach? I've never heard of being able to include coffee as part of home office expenses and want to make sure I don't get audited.

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Anthony Young

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I don't have official documentation, just what my CPA advised me. The key is not to list "coffee" as a line item but to incorporate reasonable office supplies/consumables into your overall home office deduction. The regular home office deduction already accounts for things like this. My approach is just making sure that my home office is legitimate (dedicated space, regular use for business, etc.) and then taking the standard deduction for it. I don't specifically break out coffee as a separate expense - it's just considered part of the overall home office usage.

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Admin_Masters

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Just a practical tip as someone who's been audited before: keep in mind that even if you technically CAN deduct something, you have to ask if it's worth the potential scrutiny. $500/year in coffee deductions could trigger questions that end up costing you thousands in accounting fees or time spent defending the deduction.

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This is really good advice that people overlook. What was your experience with the audit like? Did they focus on small deductions or bigger issues?

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