Snacks and continental breakfasts such as rolls, juice and coffee are not considered to be meals. The term "incidental expenses" means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. It does not include taxicab fares, lodging taxes, or the cost of telegrams, faxes, or telephone calls.

According to the IRS and general business travel guidelines in 2026, coffee is typically categorized as a "meal" expense rather than an "incidental" expense. The IRS defines "incidental expenses" specifically as fees and tips given to porters, baggage carriers, and hotel staff. Under the U.S. General Services Administration (GSA) per diem rates, the "Meals and Incidental Expenses" (M&IE) breakdown considers food and beverages—including your morning coffee—to fall under the meal portion. However, some state policies, such as California’s CalHR manual, explicitly note that light refreshments like coffee and juice are not considered full "meals" but are still generally expected to be covered by the M&IE allowance. For tax purposes, if you purchase coffee for a client during a meeting, it may be deductible as a business meal. While a $5 latte might feel like a minor incidental, standard accounting practices require it to be receipted and reported alongside your breakfast or lunch to ensure compliance with "ordinary and necessary" business travel reimbursement rules.