Limits

• Generally, you are limited to a deduction of 50 percent of the cost of the meal that is not reimbursed by your employer. This amount is included on the appropriate line on Form 2106. This amount is further restricted by a 2 percent limit of your adjusted gross income on your 1040, Individual Income Tax Return.
  
  

Exceptions

• If you hold certain employment positions, such as those of truck operators and some air transportation workers, your deduction limit is increased to 80 percent as long as the meal is attributable to business and you keep thorough and proper records.
  
  

Standard Meal Deduction

• In lieu of using the actual expenses for food and business meals, you may take a standard daily meal deduction allowance. The rate varies by location and is updated yearly. Current rates can be found on the U.S. General Services Administration website.
  
  

Definition

• Food and meals are those food items consumed during the course of your work while you are away from your primary workplace for more than one day. Your employer may impose meal limits. If so, and you overspend, you might be able to deduct 50 percent of the unreimbursed amount on your Form 2106.
  
  

Record Keeping

• You must keep records of your food and business meals. A calendar or logbook that accounts for your meals is useful, but actual receipts should also be kept.
  
  

Self-Employed

• If you are self-employed, the deductible amounts are included on your tax form's Schedule C, Profit or Loss From Business or Profession. The meal expense must be directly related to your business and paid by you, and cannot be extravagant. For example, a dinner costing $100 for one person may be considered extravagant by the IRS. You are still bound by the 50 percent deduction limit.