What New York Seniors Need To Know About Social Security Changes

There is some good news and some potentially annoying news for New Yorkers who receive Social Security. It seems like every other week, someone is doing something to or trying to change something about Social Security. The entitlement has been around just a decade shy of a century.

"The Social Security Act, enacted on August 14, 1935, provided a new federally administered system of social insurance for the aged financed through payroll taxes paid by employees and their employers. Under the system, which applied only to workers in commerce and industry, people would earn retirement benefit eligibility as they worked."

Social Security Changing The Way It Pays Out

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The Social Security Administration announced a change to the way it issues payments to recipients. Starting on September 30, 2025, it will no longer issue paper checks. There are approximately 72 million beneficiaries who will potentially be affected by this change. Unless a recipient gets a waiver, they will be forced to enroll in direct deposit or use the Direct Express prepaid debit card. This change may be annoying for many New Yorkers who prefer paper checks. Social Security Administration leadership says change is being made to modernize the agency and help prevent fraud.

Per the SSA, the change affects a small number of recipients - less than 1 percent. Beneficiaries in New York who are still receiving paper checks should sign up for direct deposit or the Direct Express® card, which is for New Yorkers without a bank account. If you need to update your payment information, you will need to do it online. Many recipients have found it difficult to reach a human being in the SSA office, especially since DOGE closed the Social Security office located at 75 S. Broadway in White Plains and at 332 Main St. in Poughkeepsie. There is nothing more frustrating than waiting on hold for hours with no other options to handle your business.

Could No Tax On Social Security Become Permanent?

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The 'One Big Beautiful Bill Act has put a tax credit in place for Social Security recipients in New York. It doesn't actually get rid of taxes on Social Security; it instead offers a tax credit. The tax relief is temporary and only for a very short period. It will take effect in 2026 and will end after 2028. New Yorkers who are aged 65 or older and have an income of up to $75,000 for an individual or $150,000 for married couples can take a $6,000 tax deduction. Additionally, the tax relief could pose problems for the Social Security program in the long run.

However, there is a bill that pushes for the complete removal of taxes on Social Security income. Democratic Senator Ruben Gallego, from Arizona, introduced the ‘You Earned It, You Keep It’ Act, which would permanently get rid of federal taxes on Social Security benefits. The no tax benefit would apply to all income brackets. If the bill passes and is signed into law, taxes on Social Security benefits would end in 2026. Senator Gallego said, “Trump claimed he ended taxes on Social Security. My bill actually does it. Permanently.”