Can I deduct meals as a 1099 contractor in 2026?

The 50% rule: IRC §274(n) limits the deduction on most business food and beverage to 50% of the actual cost. The exceptions that allow 100% deductibility (meals provided on the employer's premises for the employer's convenience, company-wide holiday parties) do not apply to most solo contractors.

What qualifies as a business meal: a meal with a client or prospective client where business is the purpose, meals during business travel (away from your tax home overnight), and meals provided to employees (50% in most cases). Documentation required: receipt, date, location, amount, business purpose, and names of all parties present. The IRS requires this under IRC §274(d). Notes in an expense app immediately after the meal are clean documentation.

The entertainment cliff: pre-TCJA (before 2018), entertainment associated with business was 50% deductible. Since the Tax Cuts and Jobs Act of 2018, entertainment is zero percent deductible. That includes sporting event tickets, concerts, theater, golf, and similar. The restriction is still in effect in 2026. A meal at a sporting event can still be 50% deductible if the meal cost is separate from the entertainment tickets and documented separately on the receipt.

Common mistakes: deducting solo lunches at your desk (working alone while eating at your regular work location does not qualify as a business meal deduction), treating all restaurant spending as business meals without a business purpose documented, applying the 50% deduction to entertainment that has no separately documented meal component.

Practical impact: if you spend $500 per month on qualifying business meals ($6,000 per year), the Schedule C deduction is $3,000 (50%). At 24% marginal rate, the tax savings is $720. At 32%, it's $960. Meaningful, but meals are rarely the primary tax lever for independent contractors. Document them consistently and take the 50% you are entitled to.