New York Could Be Impacted By New Tip Bill

Things might be better for workers who rely on tips to make a living in New York State.

A new proposed Federal bill is one step closer to becoming law.

No Tax On Tips Act

The proposed "No Tax On Tips Act" would allow tipped workers to avoid reporting their tips for income taxes up to $25000 per year. The idea of the bill is to put more money in the pockets of those workers who rely on tips. This includes waitstaff, drivers, and delivery workers.

The current law calls for tipped workers to report and tips that amount to over $20 per month.

U.S. Senate Passed The No Tax On Tips Act

The proposed bill passed its first major hurdle when the US Senate passed the bill on Tuesday. The bill now heads to the US House of Representatives, and if it gets passed there, it could become a law later this year. It would have to be signed into law by President Trump.

***UPDATE*** THE HOUSE PASSED THE BILL

No Tax on Tips Act Impact

The proposed bill would create a federal tax deduction up to $25,000 per year with certain limitations and guidelines. The bill impacts workers who receive cash or credit card tips that are reported to their employer for payroll tax withholdings.

The proposed bill would limit the deductions to employees who make $160,000 or less. That limit would be adjusted every year to reflect an increase or decrease in inflation.

Check out some new laws that started this year in New York State.