Social Security for New Yorkers: major source of income — and assistance — for most seniors in the following ways:
- Retirement benefits
- Benefits for disabled workers and their dependents
- Benefits to the families of deceased workers
- Administers the Supplemental Security Income program (SSI) – a needs-based program for people ages 65+ and people with disabilities, regardless of age.
- Provides assistance to help Medicare beneficiaries with limited income to apply for extra help with the cost of prescription drugs (Medicare Prescription Drug Program.)
Social Security: It’s tax-free in New York
While the IRS may tax you on up to 85% of on Social Security benefits, all Social Security income is tax-free on your New York State income tax return —regardless of income or the size of your Social Security benefit. But that’s not always the case! Currently, there are 13 states where the federal government taxes a portion of the Social Security benefit if an individual’s income is above certain guidelines.
What you need to know as a New York retiree:
- New York is tax-friendly toward retirees, as Social Security income is not taxed, provided that you are a resident of the state.
- Withdrawals from retirement accounts are partially taxed (20,000 annual exclusion).
- Wages are taxed the regular rates.
- Public pension income is not taxed, and private pension income is partially taxed.
- Sales and property taxes rank among the highest in the country.
- New York has its own estate tax.
Find a Social Security Advisor that has the RSSA credential.
If you’re planning for retirement in New York, advisors that are Registered Social Security Analysts can help you gain far more Social Security income by making the optimal claiming decisions. Our clients have realized from $20K to $200K in potential additional benefits. Contact us today for a complimentary 10-minute consultation with one of our RSSA advisors.