Can Contractors Deduct Meals While Working Away From Home?
- Phil Herschberger
- Apr 22
- 3 min read
Updated: Apr 22
You may have heard something like this: "If you're a contractor working more than 6 hours a day and you're over 150 miles from home, you can deduct the cost of a meal."
Sounds good in theory — but it’s not exactly how the IRS sees it.
IRS Rule: The "Overnight Test"
To qualify for a meal deduction, the IRS has a clear requirement:
You must be traveling away from your tax home long enough that you need sleep or rest to meet the demands of your job.
This is often called the "overnight rule."
The IRS further clarifies that:
You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day’s work, and You need to sleep or rest to meet the demands of your work while away from home. This rest requirement isn’t satisfied by merely napping in your car. You don’t have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest.
Example 1: You are a railroad conductor. You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. You are considered to be away from home.
Example 2: You are a truck driver. You leave your terminal and return to it later the same day. You get an hour off at your turnaround point to eat. Because you aren’t off to get necessary sleep and the brief time off isn’t an adequate rest period, you aren’t traveling away from home.
So, just being gone all day or driving long distances does not qualify unless your trip requires an overnight stay.
When Meals Are Deductible
A contractor can deduct meals if:
They're traveling for work away from their tax home;
The travel requires substantial rest (usually an overnight stay);
The trip has a clear business purpose.
Example:
You're working a job site 175 miles away and staying in a hotel overnight. ✅ Meal deductions allowed.
You're working 175 miles away but drive back home each night. ❌ Meals not deductible.
Also keep in mind:
The trip must be temporary, not indefinite.
You must maintain records showing the business purpose and location of the travel.
What Doesn’t Count
Being gone for more than 6 hours
Traveling over 150 miles but returning home the same day
Grabbing lunch during your workday
None of these meet the overnight test, so no deduction for those meals.
Bonus Tip: Per Diem Option
Instead of tracking receipts, contractors who qualify for meal deductions can use the IRS per diem rates — a flat daily amount based on location. This makes things cleaner and easier to track.
You can find the official per diem rates by location at gsa.gov.
Other benefits of using per diem:
It simplifies recordkeeping — no need to save meal receipts.
The IRS accepts per diem as substantiation if you document dates, locations, and business purpose.
Historical Misconception: Where Did the 6 Hours and 150 Miles Come From?
That “6 hours and 150 miles” rule? It didn’t come from the IRS.
In the past, some tax preparers, employers, and industry groups used informal guidelines like “gone 6+ hours” or “traveling 100+ miles” as shortcuts for determining meal eligibility. These were never official IRS standards — just approximations.
The IRS has long required that for meals to be deductible, your travel must involve a rest period (usually overnight). This standard has been consistent across IRS publications like Publication 463 for decades.
So while those old rules might’ve been easier to remember, sticking with the overnight rule is the safest way to stay compliant.
Bottom Line
Don't rely on mileage or hours alone to justify meal deductions. The IRS wants to see that you:
Traveled for business,
Stayed overnight due to work needs,
And had legitimate expenses while away from home.
Need help determining what qualifies or how to document your deductions? Let's connect!