What's the meals deduction percentage?

Generally 50% for the business — meaning the business deducts only half of qualifying meal expenses on its return. The temporary 100% deduction for restaurant meals (2021-2022 COVID provision) expired. Entertainment (sports, concerts, golf) has been entirely non-deductible since TCJA in 2018. The 50% limit applies at the business return level; individual employees still get full reimbursement of actual costs.

Do I need a receipt for every expense?

Treasury Regulation §1.274-5 requires receipts for any individual expense over $75 — and for all lodging regardless of amount. Many employers impose stricter "all receipts" policies. For meals, the receipt must be detailed enough to show the items purchased; a credit-card slip alone is sometimes insufficient.

What is the standard mileage rate I should use?

The IRS-published rate for the year. Recent rates: 65.5¢ (2023), 67¢ (2024), 70¢ (2025); the 2026 rate is published in late 2025. Always check irs.gov/standardmileage for the official current-year rate before submitting reimbursement requests, especially around year-end when rates can change between trip and report.

Can I include the tip in a meal expense?

Yes — tips are part of the meal cost and are documented on the same receipt. Tips on cash-paid meals can be added on the report (note "$X meal + $Y tip"). Excessive tips (significantly above 20%) may be questioned at audit.

What if I forgot to get a receipt?

For expenses under $75, a credit-card statement plus a contemporaneous written note (date, business purpose, amount) is generally adequate substantiation. For expenses over $75 or any lodging, missing receipts often mean the expense is not reimbursed and not deductible. Some employers permit a "lost receipt affidavit" but the IRS may still disallow at audit.

Business Expense Report Template

Itemised expense report for reimbursement or Schedule C deduction, with receipts attached.

Customise

Employee / contractor name

Employee ID / tax ID (optional)

Department / project

Business / employer name

Report period (e.g. May 1–15, 2026)

Submission date

Overall business purpose

Travel — line items (USD)

Travel — total (USD)

Meals & entertainment — line items

Meals — total (USD; 50% deductible rule)

Lodging — additional details

Supplies / equipment

Supplies — total (USD)

Mileage (miles)

Mileage rate (USD per mile)

Other expenses

Other — total (USD)

Cash advance previously received (USD)

Approver name

Approver title

Live preview

EXPENSE REPORT

═══════════════════════════════════════════════════════════════════════

Employee:        Jordan Alex Taylor     ID: EMP-1138
Department:      Sales — West Coast
Employer:        Acme Corporation
Period:          May 1–15, 2026
Submitted:       May 4, 2026

═══════════════════════════════════════════════════════════════════════

OVERALL BUSINESS PURPOSE

West-coast prospect tour, Portland and Seattle: 3 client meetings (Acme, BlueLine, RiverTech), 1 industry conference (PNW Summit). Trip generated 2 active proposals.

═══════════════════════════════════════════════════════════════════════

LINE ITEMS

A. TRAVEL                                                    Subtotal
Round-trip flight PDX-SEA: $268.40
Uber to/from PDX: $54.20
Uber Seattle: $68.10
Hotel — 2 nights Seattle Marriott: $432.00
                                                    ─────────────────
                                                            $822.70

B. MEALS & ENTERTAINMENT (50% deductible for employer)       Subtotal
Client lunch — Acme team: $112.40
Client dinner — BlueLine: $148.20
Individual breakfast (per diem): $18.00
Individual dinner (per diem): $36.00
                                                    ─────────────────
                                                            $314.60

C. LODGING (detail)
Marriott Seattle Downtown — 2 nights @ $216/night, taxes included.

D. SUPPLIES / EQUIPMENT                                      Subtotal
Conference materials printing: $42.50
USB drive for client deliverable: $19.99
                                                    ─────────────────
                                                            $62.49

E. MILEAGE
   88 miles × $0.70/mi               $61.60

F. OTHER                                                     Subtotal
Conference registration (PNW Summit): $245.00
Parking — Marriott garage: $48.00
                                                    ─────────────────
                                                            $293.00

═══════════════════════════════════════════════════════════════════════

TOTALS

  Total expenses:                                $1,554.39
  Less: cash advance previously received:        ($0.00)
                                                 ──────────────────
  REIMBURSEMENT DUE:                             $1,554.39

═══════════════════════════════════════════════════════════════════════

CERTIFICATIONS

I certify that:
  (a) The expenses above were actually incurred by me on behalf of the business;
  (b) Each expense had a valid business purpose stated above;
  (c) Receipts are attached for every expense exceeding $75 (and for all lodging regardless of amount), per Treas. Reg. §1.274-5;
  (d) None of these expenses has been or will be reimbursed by another party;
  (e) I have not received personal benefit beyond what is incidental to the business purpose.


_______________________________            Date: ____________________
Jordan Alex Taylor


APPROVAL


_______________________________            Date: ____________________
Priya Patel — VP Sales


═══════════════════════════════════════════════════════════════════════

ATTACHED RECEIPTS

□ All receipts > $75 (or all receipts under an "all receipts" company policy)
□ Lodging receipts (always required, regardless of amount)
□ Conference registration confirmations
□ Boarding passes / itineraries (for travel)
□ Mileage log excerpt (for the period covered)

About this template

An expense report serves two distinct audiences. For employees of a W-2 employer, the report is reimbursement documentation — the employer typically pays back actual expenses dollar-for-dollar (an "accountable plan" under IRS rules) and deducts them as a business expense at the entity level. For self-employed filers, the same template captures Schedule C deductible expenses for the business. The two cases follow the same documentation rules: each expense needs a receipt for amounts over $75 (lodging requires a receipt at any amount), and each expense must have an articulable business purpose. The Tax Cuts and Jobs Act suspended unreimbursed employee expenses through 2025, meaning W-2 employees cannot deduct expenses their employer fails to reimburse — making the reimbursement step important rather than the tax deduction. The 50% meals-and-entertainment limitation applies to most business meals; under TCJA, entertainment (sports tickets, concerts, etc.) is no longer deductible at all. The temporary 100% meals deduction (2021-2022 COVID provision) has expired. The standard mileage rate is published annually by the IRS (recent rates: 67¢/mi for 2024, 70¢/mi for 2025; check irs.gov for the current year). Under an accountable plan, expense reimbursements are not taxable income to the employee; under a non-accountable plan or for amounts above the IRS rate without proper substantiation, the excess becomes taxable wages.

When to use it

Employees seeking reimbursement for company travel or expenses.
Self-employed filers documenting Schedule C deductions.
Multi-day business trips with mixed expense categories.
Conference attendance with travel, lodging, and registration costs.
Client meetings involving meals or entertainment.

What to include

Employee identification and reporting period.
Articulated overall business purpose.
Line items by category with subtotals.
Mileage calculation (miles × IRS rate).
Cash-advance offset (if any).
Employee certification + supervisor approval.
Receipts attached for all items > $75 (or all per company policy).

Frequently asked

An accountable plan is an employer reimbursement arrangement that meets three IRS requirements: (1) expenses must have a business connection, (2) the employee must substantiate them within a reasonable time (usually 60 days), and (3) any excess advance must be returned within a reasonable time (usually 120 days). Reimbursements under an accountable plan are not taxable to the employee. Non-accountable plans add reimbursements to W-2 wages.

⚠ Legal disclaimer. This template is provided for informational purposes only and is not a substitute for legal advice from a qualified attorney. Always consult a licensed professional before using this document for any binding agreement.