I started a new consulting business in August 07. Under my contract my payer also reimburses me dollar for dollar for my meals and travel expenses. When I received my 1099MISC my consulting fees, meals and expenses are all included as one amount in box 7. I understand that I can claim the mileage as a deduction and it will be a wash so I don't have to pay taxes on the mileage reimbursement. However, as I understand it I can only claim 1/2 the costs of meals. If this is so, then I will have to pay income and self employment tax etc on the other 1/2 of the meal for which I was reimbursed. Is this so, or am I missing something?