New York A05856 establishes an income tax deduction for cash and credit card tips considered wages or compensation.

New York A05856 amends the tax law to establish an income tax deduction for cash and credit card tips received, which are considered wages or compensation. This deduction applies to all taxable years beginning on or after January 1, 2026. The bill defines these tips as part of the taxpayer's income, aligning with the Internal Revenue Code's definition of wages or compensation.

New York A05856 establishes an income tax deduction for cash and credit card tips considered wages or compensation.

New York A05856 amends the tax law to establish an income tax deduction for cash and credit card tips received, which are considered wages or compensation. This deduction applies to all taxable years beginning on or after January 1, 2026. The bill defines these tips as part of the taxpayer's income, aligning with the Internal Revenue Code's definition of wages or compensation.