New York Gov. Kathy Hochul (D) said she will push to eliminate state taxes on tipped income in her upcoming budget plan, echoing the new federal treatment of tips in the 2025 GOP tax law.
Hochul said Thursday her proposal would remove state taxes on up to $25,000 of tipped income in tax year 2026, matching the federal deduction cap for tips. The IRS has proposed rules to define what qualifies as tipped income, with golf caddies and makeup artists among those allowed to qualify for the tax break.
State lawmakers return to Albany next week, beginning negotiations over ...
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