Can I Deduct Meals and Entertainment as a Freelancer?

A meal is deductible at 50% if (a) it has a clear business purpose, (b) you or a representative of your business is present, and (c) the meal isn't lavish or extravagant under the circumstances. Coffee with a client to discuss a project: deductible. Coffee while working alone: not deductible.

The 2017 Tax Cuts and Jobs Act eliminated the entertainment deduction. Sports tickets, concert tickets, golf rounds, theater shows — even if you're with a client discussing business — are NOT deductible. The rule changed sharply in 2018 and many freelancers still mistakenly claim entertainment.

If you take a client to a basketball game and grab dinner: the game tickets are NOT deductible. The dinner (with documented business discussion) is 50% deductible. Track them separately on receipts.

• Lunch or dinner with a client to discuss a project or contract
• Coffee meeting with a potential client or referral source
• Travel meals on business trips (50% on travel days)
• Meals during a business meeting (e.g. catered lunch for a workshop you teach)
• Meals where you're conducting professional development with a peer in your field

• Personal meals while working alone (lunch by yourself even if at a coffee shop you work from)
• Social dinners with friends in your industry (no specific business purpose)
• Daily meals during your normal workday (you're not 'traveling' if home is your office)
• Meals where the business discussion was tangential or didn't really happen
• 100% deductibility on any meal — the cap is 50%

• Date of the meal
• Restaurant name and location
• Total cost (keep the receipt)
• Who attended (their name and business affiliation)
• Business purpose discussed (one sentence is enough)

For meals over $75, the IRS expects a receipt. Below $75, a card statement entry plus your business-purpose note is usually enough. For meals during travel, save all receipts regardless of amount — travel auditing is more thorough.