Taxes

Based on current federal and New York State tax laws for the 2026 tax year, here is the outlook for your 2027 filing: **Federal Taxes:** You will likely owe federal income tax. For Social Security, the IRS uses "combined income" (Adjusted Gross Income + Tax-Exempt Interest + 50% of Social Security). * Your combined income would be approximately $40,000 ($17,000 pension + $23,000 half of SS). * Since this exceeds the $34,000 threshold for individuals, up to 85% of your Social Security benefits may be considered taxable income. After applying the standard deduction for someone over 65, you will likely have a taxable balance. **New York State/City Taxes:** You will likely owe **zero** state or city income tax on this specific income. * New York State and City fully exempt Social Security benefits from taxation. * Furthermore, pensions received from New York State or local governments (like an NYC pension) are generally 100% exempt from NY State and City income tax, regardless of your age. **Recommendation:** Consider having federal tax withheld from your pension or Social Security checks to avoid a lump-sum payment or underpayment penalties in 2027.