As of January 1, 2023, meals and entertainment deductible expenses revert back to the tax rules prior to 2021. The Consolidated Appropriations Act of 2021 temporarily increased some these deductions for 2021 and 2022 tax years to 100% deductibility. For tax year 2023, these deductions reduce back to 50% deductibility.
2023 Deductible Meals & Entertainment
| Expense | 2021-2022 Federal | 2021-2022 WI | 2023 Federal | 2023 WI |
| Entertaining clients (concert tickets, golf, games, etc.) | No longer deductible | 50% Deductible | No longer Deductible | 50% Deductible |
| Business-related meals (with clients) | 100% Deductible | 50% Deductible | 50% Deductible | 50% Deductible |
| Office snacks, water, and coffee | 50% Deductible | 50% Deductible | 50% Deductible | 50% Deductible |
| Office meals for employees (at a conference, a board meeting) | 100% Deductible | 50% Deductible | 50% Deductible | 50% Deductible |
| Meals at seminars or conferences | 100% Deductible | 50% Deductible | 50% Deductible | 50% Deductible |
| Dinner provided for employees working late (if takeout or delivery by a restaurant) | 100% Deductible | 50% Deductible | 50% Deductible | 50% Deductible |
| Business meals while traveling | 100% Deductible | 50% Deductible | 50% Deductible | 50% Deductible |
| Snacks and drinks provided free of charge for the public | 100% Deductible | 100% Deductible | 100% Deductible | 100% Deductible |
| Meals included as taxable compensation to employees and included on the W-2 | 100% Deductible | 100% Deductible | 100% Deductible | 100% Deductible |
| Events for employees (company-wide party) | 100% Deductible | 100% Deductible | 100% Deductible | 100% Deductible |