Delivering tax relief for Brooklyn families: What the new tax provisions mean for your refund this year

Last year, the Executive Branch and supporters in the House delivered the largest tax cut for working Americans, middle-class families and senior citizens here in Brooklyn and across America. Now, with tax season officially underway and families preparing their returns, I want to highlight that because of the provisions we fought for, families can expect larger tax refunds this year.

One of the biggest reasons Brooklyn residents will see these savings is the quadrupling of the State and Local Tax (SALT) deduction to $40,000 for families earning under $500,000 — providing meaningful relief from high local income and property taxes and benefiting nearly 98% of households throughout our entire district.

Senior citizen homeowners may be the biggest winners because not only will they benefit from the increased SALT deduction, but 88% of all seniors will also see the federal taxes they paid on Social Security benefits in 2025 refunded to them because of an additional deduction of $6,000 that’s available for individuals with income up to $75,000 and $12,000 for married couples earning up to $150,000.

For our tipped and overtime workers, we delivered on our commitment to cut taxes on most tips and overtime pay. Tipped workers can deduct up to $25,000 per year, with the deduction phasing out for higher earners. Those workers who are paid overtime can also deduct a portion of that income, with a maximum annual deduction of $12,500 or $25,000 for joint filers. Gov. Hochul and the State Legislature can and should match this on the state level so these workers get double the benefit. 

Additionally, we increased the standard deduction to $15,750 for individuals, $23,625 for heads of households and $31,500 for married couples so families can keep more of their hard-earned income. We also expanded the Child Tax Credit to $2,200 per child for families with annual incomes of up to $200,000 or $400,000 if filing jointly. Finally, we expanded 529 education savings accounts to support scholarships and school choice.

In a first of its kind, we created a newborn baby investment account featuring a $1,000 contribution for every American child born after Jan. 1, 2025. The account is fully in the child’s name, and the parent or guardian is the sole custodian until the child turns 18. No contributions are necessary, but families may deposit up to $5,000 per year to maximize growth. The account has the potential to grow to $271,000 by age 18 with maximum contributions.

For those who purchased a new American-made vehicle last year, we also made interest on American-made vehicles tax deductible. 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 and up to $200,000 for joint filers.

Taken together, these tax provisions reflect our commitment to affordability, lowering the cost of living and easing the burden on working families, seniors and middle-class households here in Brooklyn and across America. That’s real relief — and it’s exactly what our families deserve.