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A1278 • 2026

Allows gross income tax deduction for income earned in form of tips.

Allows gross income tax deduction for income earned in form of tips.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Inganamort, Michael
Last action
2026-01-13
Official status
Introduced, Referred to Assembly Labor Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Allows gross income tax deduction for income earned in form of tips.

Allows gross income tax deduction for income earned in form of tips.

What This Bill Does

  • Allows gross income tax deduction for income earned in form of tips.
  • Topic: Labor Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-13 New Jersey Legislature

    Introduced, Referred to Assembly Labor Committee

Official Summary Text

Allows gross income tax deduction for income earned in form of tips.
Topic:
Labor
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
A1278

ASSEMBLY, No. 1278

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

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

���� Introduced Pending Technical Review by Legislative
Counsel.

��

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.