Editor’s note: This follows on Rep. Malliotakis’ recent discussion, before the passage of the OBBBA, of multiple tax benefits that will be especially appreciated by Staten Islanders.  

 

Malliotakis, IRS Head Highlight New Tax Relief in Brooklyn as Tax Day Nears

(BROOKLYN, NY) — Congresswoman Nicole Malliotakis welcomed Frank Bisignano, Chief Executive Officer of the Internal Revenue Service (IRS) and Commissioner of the Social Security Administration, to Brooklyn as they discussed new tax relief for working families and seniors that has already put more money back in Americans’ pockets. Additionally, they toured the Bensonhurst Social Security Office, where they discussed ongoing improvements to Social Security customer service and expanded access to appointments.

Recent data from the IRS shows that over 80% of refunds were issued in less than 21 days, with the average refund this year at $3,571. The average refund is up by more than 10 percent, with total refunds now at more than $202 billion.

Additionally, the Working Families Tax Cuts delivers significant relief and economic growth, including a $90 billion tax cut for hourly overtime workers, $32 billion in tax relief for tipped workers, and $63 billion in tax relief for seniors. The legislation is projected to generate $284 billion in economic growth from manufacturers and drive more than $100 billion in new investments in opportunity zones. It also provides a $10,900 boost in take-home pay for a family with two children, secures 7.2 million American jobs, and delivers a boosted Child Tax Credit to 40 million American families.

Congresswoman Malliotakis also discussed her legislation H.R.5475 – No Tax on Overtime for All Workers Act which updates the tax code’s outdated definition of overtime so more workers—like first responders, hospital staff, and transportation workers—qualify for tax-free overtime pay or have the same threshold as the result of the economy. It ensures these workers are treated the same as others, allowing them to claim up to $25,000 of overtime income exempt from federal taxes.

“We are glad to welcome Chief Executive Officer of the Internal Revenue Service (IRS) and Commissioner of the Social Security Administration Frank Bisignano to the Social Security Office in Bensonhurst, and appreciate the work Social Security offices have done to improve customer service and expand access to appointments,” said Congresswoman Nicole Malliotakis. “This tax season, millions of working Americans and middle-class families, including those here in Brooklyn, are already seeing the impact of the Working Families Tax Cuts as they file their taxes with the average refund up by more than 10%. From no tax on Social Security for our seniors, to no tax on most tips and overtime, an increased Child Tax Credit, Standard Deduction, State and Local Tax Deduction, and newly created newborn baby savings accounts, we remain focused on delivering for the American people and putting more money back in their pockets, not Uncle Sam’s.”

“43% of the returns that come in have benefited from one of deductions, at least, no tax on tip, no tax on overtime, no tax on car loan interest, a special deduction for seniors and a permanent extension for several important existing tax provisions,” said Frank Bisignano, Chief Executive Officer of the Internal Revenue Service (IRS) and Commissioner of the Social Security Administration. “It’s my honor to say the great job being done here by Congresswoman Malliotakis, the great leadership provided by President Trump, the great leadership for Treasury by Secretary Bessent has allowed us to be able to execute on a mission that many thought could be too hard, but of course, it wasn’t. Great leadership at the top, superior execution within the agencies and a very satisfied set of American taxpayers and Social Security recipients.”

 

 

Watch the Press Conference HERE.

 

New Changes to the Tax Code:

Increased State and Local Tax (SALT) Deduction:

• The State and Local Tax (SALT) deduction has been quadrupled to $40,000 for individuals and families earning less than $500,000, covering 98% of households in NY-11 and allowing for increased deductions for local income and property taxes.

 

No Tax on Social Security for Seniors:

• A new bonus deduction was created for seniors aged 65 and older—$6,000 for individuals with income up to $75,000 and $12,000 for married couples earning up to $150,000, eliminating their tax burden on Social Security benefits. The amount of the deduction decreases as income increases.
• As a result, 51 million seniors receiving Social Security (an estimated 88%) will pay no tax on those benefits.

 

Increased Standard Deduction:

• The Standard Deduction increases to $15,750 for individuals, $23,625 for heads of households, and $31,500 for married couples for tax year 2025.

 

No Tax on Tips:

• Tipped workers, will receive significant tax relief. The maximum annual deduction is $25,000, which phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

No Tax on Overtime Pay:

• Individuals who receive qualified overtime pay may deduct the pay that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.
• The maximum annual deduction is $12,500 ($25,000 for joint filers). The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). The deduction is available for both itemizing and non-itemizing taxpayers.

 

Putting Working Families First:

• The Child Tax Credit increased up to $2,200 per child, if your annual income is not more than $200,000 ($400,000 if filing a joint return).
• Trump Accounts were also created for newborn babies and feature a contribution of $1,000 for every American child born between January 1, 2025 and December 31, 2028. The account is fully in the child’s name, and the parent/guardian is the sole custodian until the child turns 18. No contributions are necessary—but you can deposit up to $5,000 per year to maximize growth.
• The legislation expands 529 education savings accounts, supports scholarships and school choice.

Tax Deduction for American Manufactured Vehicles:

• Individuals may deduct up to a maximum annual deduction of $10,000 in interest paid on a loan used to purchase a qualified American manufactured vehicle for personal use. The deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
• The vehicle must have undergone final assembly in the United States and the loan must have originated after December 31, 2024.

 

In March, Malliotakis wrote in the Brooklyn Daily Eagle about how new tax relief is putting money back in the pockets of working families and seniors.

 

Banner Image:  Congresswoman Nicole Malliotakis welcomed Frank Bisignano at the Bensonhurst Social Security Office. Image Credit – Rep. Malliotakis