There are a few circumstances whether or not independent contractors can deduct meal expenses. In 2010 the IRS regarded independent contractors as self employed and their earning are subject to self-employment tax. As a self-employed independent contractor you are now granted in the same business expense deductions as any other business.

To be classified as an independent contractor under the IRS guidelines would depend on certain circumstances and each case is different. If you are classified as an independent contractor your employer has the right to control or direct only the result of your work. Nevertheless, if the employer controls what you do and how you do it, you are an employee, despite whether or not the employer gives you freedom of action. If you are in the independent trade, business or profession, which you offer your services to the general public, you are an independent contractor.

The IRS requires for your business expenses to be deductible, it must be normal, meaning common and accepted in your industry, and necessary, meaning helpful and appropriate to your trade or business. A necessary expense is not required to be essential.

The next thing you need to distinguish is if it’s business expenses from personal expenses. Depends on certain circumstances but personal, living or family expenses generally cannot be deducted. However, if an expense is used partly business and partly for personal purposes, only the business expense portion may be deducted. As an independent contractor you are able to deduct the cost of meals either as overnight business travel expenses or as business-related entertainment expenses.

To qualify for a business entertainment deduction, entertainment expenses must be normal and necessary while carrying on your trade or business. You have to show that the entertainment expenses are directly related or associated with the conducting of your trade or business, including meals and beverages. Additionally, the meal must take place right before or after discussion held for the purpose of making a business decision.

You can deduct the meals as an overnight business travel expenses, if while away from home you required sleep or rest to meet the demands of your work.

You cannot deduct expenses from meals that luxurious and opulent. A meal cannot be considered to be luxurious and opulent if the cost is reasonable, based on the facts and circumstances. Business expense deductions for meals are limited to 50% of the actual cost of the meals. You must keep records of your actual meal cost.