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March 6, 2025
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Why are meals included on form 1125 A line 4?

  • March 6, 2025
  • 1 reply
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Hello,

 

I am confused why form 1125A includes a line item for meals, only in the TurboTax version of the form (see image below). This value for was not auto-filled by the software, I manually entered an amount for meal expenses. This entered value was divided by 2 and added to line 5 calculations. This affects COGS obviously. This does not seem correct and is possibly "double dipping" as the meal expenses (50% deductible) were already included in the Other Deductions section. Does anyone know why this line item is here and how it is intended to be used?

 

Best answer by ThomasM125

Meals provided onsite to employees can be 100% deductible. They belong in the cost of goods sold section if they are associated with production workers, as opposed to administrative staff. The meals in the other deduction section are applicable to outside meals typically associated with entertainment and travel.

1 reply

March 6, 2025

Meals provided onsite to employees can be 100% deductible. They belong in the cost of goods sold section if they are associated with production workers, as opposed to administrative staff. The meals in the other deduction section are applicable to outside meals typically associated with entertainment and travel.

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