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Bill > A05856
NY A05856
NY A05856Establishes an income tax deduction for cash and credit card tips received which are considered wages or compensation.
summary
Introduced
02/24/2025
02/24/2025
In Committee
01/07/2026
01/07/2026
Crossed Over
Passed
Dead
Introduced Session
2025-2026 General Assembly
Bill Summary
AN ACT to amend the tax law, in relation to establishing a tax deduction for cash and credit card tips received
AI Summary
This bill establishes a new income tax deduction for individuals in New York State, allowing them to deduct the amount of cash and credit card tips they receive during a taxable year, provided these tips are considered wages or compensation. This means that income earned from tips, which is already subject to taxation, can now be subtracted from their overall taxable income, potentially lowering their tax burden. The bill references section six thousand fifty-three of the internal revenue code for the definition of wages or compensation, ensuring consistency with federal tax guidelines. This change is set to take effect immediately and will apply to all tax years starting on or after January 1, 2026.
Committee Categories
Budget and Finance
Sponsors (19)
Michael Durso (R)*,
Joe Angelino (R),
Karl Brabenec (R),
Keith Brown (R),
Patrick Chludzinski (R),
Joe DeStefano (R),
Jarett Gandolfo (R),
Jodi Giglio (R),
Josh Jensen (R),
Brian Maher (R),
Dave McDonough (R),
Phil Palmesano (R),
Sam Pirozzolo (R),
Joseph Sempolinski (R),
Matt Simpson (R),
Matt Slater (R),
Robert Smullen (R),
Mike Tannousis (R),
Mary Beth Walsh (R),
Last Action
print number 5856a (on 01/13/2026)
Official Document
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