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Bill > A05856


NY A05856

NY A05856
Establishes an income tax deduction for cash and credit card tips received which are considered wages or compensation.


summary

Introduced
02/24/2025
In Committee
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)

Last Action

print number 5856a (on 01/13/2026)

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