Some New Yorkers Will Have Their Social Security Payments Cut
There's bad news for some New Yorkers. There have been lots of changes being made to Social Security, some good, some bad. Elon Musk's DOGE made cuts to Social Security staff, eliminating offices and staff. 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 on May 31 and will close the office located at 332 Main St. in Poughkeepsie at the end of this month on July 31.
Tax Relief Is Coming To Social Security
The One Big Beautiful Bill Act states that 88 percent of Social Security income recipients won't have to pay federal income taxes on their benefits. Social Security Commissioner Frank Bisignano said,
"This is a historic step forward for America's seniors. For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump's promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they've earned."
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.
That's the good news...
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Social Security Payments Will Be Slashed For Certain New Yorkers
During President Biden's term, in March of 2024, he directed the Social Security Administration to stop collecting 100 percent of a person's benefits to repay an overpayment they may have received. Instead, the Biden administration settled on taking 10 percent to go towards repayment.
Trump recently instructed the SSA to resume seizing 50 percent of a person's benefits in order to recoup any overpayment. Per The Motley Fool, the first notices regarding the claw-back went out on April 25. New Yorkers who received these notices were given 90 days to appeal, but time is up. The grace period is ending. That means that any New York beneficiaries will begin to see their benefits seized to repay the overpayment they received.
Big Changes Coming For New York's Social Security Payments
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The Social Security Administration announced a change to the way it issues payments to recipients. On Monday, July 14, 2025, the SSA announced that beginning September 30, 2025, it will no longer issue paper checks.
"By moving to electronic payments exclusively, we aim to improve efficiency, security, and ensure beneficiaries receive their monthly benefits promptly."
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.
