Sponsored by:
Assemblyman MICHAEL INGANAMORT
District 24 (Morris, Sussex and Warren)
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Assemblymen Kanitra and McGuckin
SYNOPSIS
Allows gross income tax deduction for income earned in form of tips.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax deduction for income earned in the form of tips, and supplementing chapter 3 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A taxpayer shall be allowed a deduction from gross income equal to the amount of income received in the form of tips for services rendered during the taxable year that are included in statements furnished to the employer pursuant to subsection (a) of section 6053 of the federal Internal Revenue Code, 26 U.S.C.S. s.6053(a), or such other documentation as may be required by the Director of the Division of Taxation.
2. The Director of the Division of Taxation of the Department of the Treasury shall adopt, pursuant to the Administrative Procedure Act, P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as are necessary to carry out the provisions of this act.
3. This act shall take effect immediately and shall apply to taxable years beginning on or after the January 1 next following the date of enactment.
STATEMENT
This bill allows a gross income tax deduction for income earned in the form of tips.
Under the bill, a taxpayer claiming a deduction against gross income tax for income received from customers in the form of tips is required to report that tip income in a statement to the employer pursuant to federal income tax law, or such other documentation as may be required by the Director of the Division of Taxation.