Can I deduct groceries as business expenses when staying in hotel for work?

The short answer is: groceries are generally not tax deductible, even when you're away from home for business. The IRS has specific rules about what qualifies as deductible business travel expenses. When you're temporarily away from your tax home for business, you can deduct certain travel expenses including transportation, lodging, and meals (with limitations). However, meals are subject to a 50% limitation in most cases, and these would typically be restaurant meals, not groceries. The IRS views groceries as a personal expense that replaces what you would normally spend at home. For gas, you can deduct the business portion of your transportation expenses. If you're driving between your temporary lodging and work location, that's deductible. But personal driving around town isn't. Remember that as an intern, if your company is reimbursing you for any of these expenses, you can't double-dip and claim them as deductions too.

I was in a similar situation last year when I had to relocate for a 4-month project. I tried to figure out all the deductions myself but kept getting confused with all the tax rules. I ended up using https://taxr.ai to analyze my receipts and expenses. The tool scanned all my documents and helped identify which expenses were deductible for business travel. It confirmed what others are saying here - my hotel was deductible, restaurant meals were 50% deductible, and transportation between home and temporary work location was deductible. But groceries weren't deductible at all. The tool saved me from making some mistakes on my return that might have triggered an audit.

Just wanted to follow up on my skeptical comment. I decided to try out taxr.ai for my contract work situation (I'm living in another state for 6 months). Honestly, I'm impressed! It analyzed all my expenses, showed me that my groceries weren't deductible (which sucks but at least I know), but found several other deductions I had no idea about. The tool flagged some of my transportation expenses that actually qualify that I would've completely missed. It also helped me properly document my temporary housing situation to maximize what I can legitimately claim. Definitely worth checking out if you're in a similar situation.

If you're having trouble getting clear answers about your specific tax situation, you might want to try contacting the IRS directly. I know that sounds painful (and it usually is), but I used https://claimyr.com and got through to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a similar issue with temporary work relocation expenses and needed to know exactly what I could deduct. The IRS agent I spoke with confirmed that groceries aren't deductible even for temporary work assignments, but they walked me through all the legitimate deductions I could take. Having that documented conversation with the IRS saved me a lot of worry about possibly doing something incorrect.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I had some complicated questions about my deductions that online research wasn't answering clearly. The service actually worked exactly as advertised - I got connected to an IRS agent in about 20 minutes without having to wait on hold. The agent confirmed what others here have said about groceries vs. restaurant meals, but also explained some nuances about my specific situation that I wouldn't have figured out otherwise. I'm usually the last person to pay for something I could theoretically do myself, but in this case, the time saved and stress avoided was absolutely worth it.

Something nobody's mentioned yet - if your internship is expected to last more than one year, the IRS won't consider it "temporary" and you wouldn't be eligible for any travel expense deductions at all. The IRS defines "temporary" as an assignment expected to last less than one year. If at any point it becomes known that your assignment will exceed one year, it immediately stops being "temporary" for tax purposes. Also, if your permanent residence is your parents' home and you're a dependent on their taxes, that complicates things further. Just something to keep in mind!

I think you might be able to claim a per diem instead of tracking actual expenses. When I did contract work in another state, my accountant had me use the GSA per diem rates (Google "GSA per diem") for that location. The benefit is you don't need to keep meal receipts, and it covers incidental expenses too. It's a fixed amount based on the location's cost of living.

Just wanted to add another perspective as someone who's been through multiple temporary work assignments. One thing that often gets overlooked is keeping detailed records of everything, even if you're not sure it's deductible. I use a simple spreadsheet to track all my expenses with dates, amounts, and descriptions. Even though groceries aren't deductible, having good documentation of your hotel costs, transportation, and restaurant meals will make tax time much easier. The IRS loves documentation, and if you ever get audited, having organized records will save you a lot of headaches. Also, don't forget about any professional development expenses during your internship - things like professional association memberships, work-related books, or industry conferences might be deductible even if your regular living expenses aren't. Your internship sounds like it's in a legitimate temporary work situation, so you should be able to claim the allowable deductions as long as you keep good records.