#social-security-taxation

#social-security-taxation

COLA increases can trigger federal taxation of Social Security benefits, reducing retirees' real purchasing power because provisional income thresholds remain frozen.

New York retirees will receive a Senior Deduction beginning 2025, reducing federal tax on Social Security and increasing after-tax retirement income.

Since 1983 the Social Security income-tax threshold of $35,700 remains unchanged, creating an unfair tax burden as inflation erodes its buying power.