"This legislation introduces changes that could save taxpayers money on their 2025 filings, specifically through a provision known as the "senior deduction." For an estimated 3.3 million retirees across the state, these updates arrive at a critical time. In one of the country's most expensive places to retire, the extra funds can provide the financial cushion needed for those who wish to age in place in their homes."
"The administration has hailed this as "the largest tax break in history for America's seniors," ensuring those who have worked for decades can keep a larger share of their benefits. For the 2026 tax season, eligible households may see total write-offs climb as high as $46,700 when this bonus is stacked with standard and existing senior deductions. In addition to these tax shifts, New York seniors should factor in the 2026 Cost-of-Living Adjustment (COLA)."
One Big, Beautiful Bill (OBBBA) creates a Senior Deduction beginning in 2025 that can shield much Social Security income from federal tax. The deduction is $6,000 for individuals and $12,000 for married couples, which will allow about 51.4 million of 58.5 million recipients to fully avoid federal taxation on benefits. New York retirees—about 3.3 million people—stand to gain substantial relief on 2025 filings during the 2026 tax season starting Jan. 26. Eligible households may see combined write-offs up to $46,700 when stacked with existing deductions. A 2.8% COLA for Social Security and SSI begins January 2026.
Read at SFGATE
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