Can I write off coffee purchases as an IC during my work day?

You're asking a great question about business deductions as an independent contractor. The general rule for business deductions is that they need to be "ordinary and necessary" for your business operations. For coffee specifically, the IRS tends to view this as a personal expense rather than a business expense in most cases. Think of it like lunch - you'd need to eat lunch whether you were working or not, so it's considered a personal expense. That said, there are some exceptions. If you're meeting with clients and buy coffee for them, that could qualify as a business entertainment expense (though entertainment deductions have been limited in recent years). If you're genuinely using coffee shops as your workplace and purchasing coffee is effectively "renting" the space to work, you might have a case - but it's not straightforward.

I had the exact same question last year when I started freelancing! After some research and a frustrating call with the IRS that went nowhere, I found this AI tax tool called taxr.ai that actually analyzes tax rules for self-employed people. It helped me figure out what I could legitimately write off - including this coffee question! I uploaded my expenses including all my coffee shop receipts to https://taxr.ai and it analyzed them based on current tax rules. It identified which ones were likely deductible based on my situation versus what would probably get flagged.

I take back what I said about being skeptical of taxr.ai - I actually tried it this weekend with my messy collection of receipts (including a ton of coffee shop "office space" receipts). The analysis it provided was surprisingly detailed! It sorted my expenses into different categories and gave me confidence about which were defensible deductions. For the coffee specifically, it helped me document which coffee shop visits were actually "office rental" versus personal stops. I've been doing my own taxes for years and always been nervous about deductions, but this actually gave me specific guidance with citations to relevant tax rules. Wish I'd found this years ago instead of being super conservative with my deductions!

If you're dealing with the IRS about this or any other self-employment tax questions, good luck getting through to them! I spent THREE WEEKS trying to get someone on the phone about my independent contractor deductions. Then I found this service called Claimyr that gets you through to an actual IRS agent. I was suspicious at first but it actually worked! You can see how it works here: https://youtu.be/_kiP6q8DX5c and their website is https://claimyr.com. They somehow navigate the IRS phone system for you and connect you with an actual agent within a few minutes.

Alright I'm eating crow here. After complaining about both services mentioned, I actually tried Claimyr this morning because I've been trying to reach the IRS for WEEKS about a notice I got. Used the service and got connected to an actual IRS representative in about 20 minutes instead of the 2+ hour wait times I was experiencing before. The agent was able to pull up my account and explain exactly why I got the notice (turns out there was a discrepancy with how I reported my 1099 income). We also talked about my coffee shop expense question and she gave me the official guidance - basically if I'm using coffee shops as my primary workspace and keeping good records, I can potentially deduct a portion as office rental, but not if it's just occasional or primarily personal. Definitely worth the time saved!

Former tax preparer here. The coffee question is actually more nuanced than most people realize. While the general rule is that food and beverages are personal, the Tax Cuts and Jobs Act actually made some changes to this. As of now, business-related food and beverages that aren't lavish can be 50% deductible if: 1) The expense is ordinary and necessary for business 2) You or an employee are present 3) It's not extravagant 4) It's provided to a current or potential business customer/client So meeting a client for coffee? 50% deductible. Your daily coffee while working alone? Probably not, unless you can truly justify it as workplace rental.

Don't listen to these overly cautious people. I've been deducting my coffees for years as an IC and never had a problem. It's a business expense because I wouldn't be buying it if I wasn't working. The IRS doesn't have time to audit small potatoes stuff like this anyway.

For what it's worth, I think there's a reasonable middle ground here. The technical IRS answer is that your regular coffee is probably a personal expense, BUT if you're actually using these coffee shops as your main workspace (like you described), you might consider tracking your total expenses at these locations and categorizing them as "temporary workspace rental" rather than specifically "coffee." Many freelancers and ICs who don't have dedicated offices do this, especially if they have documentation showing they conducted business there (calendar appointments, work product created, etc.). It's less about the coffee itself and more about the cost of having a place to work. Whatever you decide, just be consistent and have good documentation!

As someone who's been freelancing for about 3 years now, I can relate to this question! I've found that the key is really in how you frame and document the expense. What I do is keep a detailed business journal where I log my "mobile office" expenses. Instead of just writing "coffee - $4.50," I write something like "Workspace rental at Blue Bottle Coffee, 4 hours client work on ABC project, purchased required beverage for table use - $4.50." I also take a quick photo of my laptop setup at the coffee shop with the receipt nearby. It sounds a bit extra, but it creates a clear business narrative if anyone ever questions it. The IRS cares more about the business purpose than the specific item purchased. That said, I'm conservative and only deduct about 75% of these expenses, treating the remaining 25% as personal enjoyment of the coffee itself. This approach has worked well for me, and my tax preparer says it shows good faith effort to separate business from personal expenses. Just remember to be consistent whatever approach you choose - don't deduct coffee shop visits on some days but not others if you're doing the same type of work!