Understanding the Standard Deduction Under the OBBBA: What New Yorkers Need to Know

The standard deduction isn’t just a line on your tax return—it’s one of the biggest factors in how much of your income actually gets taxed. With the One Big Beautiful Bipartisan Act (OBBBA) extending and expanding many provisions from the Tax Cuts and Jobs Act (TCJA), millions of taxpayers will see higher standard deduction amounts for the 2025 tax year (returns filed in 2026). That’s good news for most individuals and families across New York, especially those looking to simplify their returns and save money.

For residents of Plainview, Long Island, and the surrounding New York area, understanding these changes can make a meaningful difference in how you plan and file your taxes.

What Is the Standard Deduction?

The standard deduction is a flat amount the IRS lets you subtract from your income before calculating your taxes. It’s designed to simplify the process so most taxpayers don’t have to itemize deductions like mortgage interest or charitable donations.

Instead of adding up expenses, you can take the standard deduction and instantly lower your taxable income. The result? A faster, simpler filing—and often, a smaller tax bill.

Example: A young couple in Plainview earning a combined $110,000 can take the new standard deduction of $31,500 if filing jointly. That means they only pay tax on $78,500 of income—without needing to track or itemize expenses.

How the OBBBA Changed the Standard Deduction

Under the OBBBA, the standard deduction has been increased and made permanent for most taxpayers, along with new inflation adjustments that help it keep pace with the cost of living. For the 2025 tax year (returns filed in 2026), the new standard deduction amounts are:

• Single or Married Filing Separately: $15,750

• Married Filing Jointly or Qualifying Widow(er): $31,500

• Head of Household: $23,625

In addition, seniors (age 65 or older) and taxpayers who are blind can claim an extra deduction—$2,000 if filing single or head of household, and $1,600 per qualifying individual for married filers. Each spouse may qualify separately, meaning a couple could receive up to $3,200 in additional deductions.

The OBBBA also establishes a new temporary bonus deduction for qualifying seniors, up to $6,000 (or $12,000 for qualifying couples). This additional deduction begins to phase out at an adjusted gross income (AGI) of $75,000 for single filers or $150,000 for joint filers, and phases out fully around $175,000 and $250,000 respectively. The IRS defines qualifying seniors as those age 65 or older by December 31 of the tax year. This provision is effective for tax years 2025 through 2028.

Example: A retired Plainview resident age 68 filing jointly with a spouse could qualify for both the higher age-based deduction and the new senior bonus—saving several hundred dollars in taxes compared to prior years.

These updates make the standard deduction more valuable than ever—especially for middle-income households.

Note: IRS guidance on specific implementation details is expected, and taxpayers should consult a qualified advisor to confirm how the senior bonus deduction applies to their situation.

The Standard Deduction and New York Taxpayers

New York taxpayers often face higher state and local taxes, steep housing costs, and limited property tax deductions due to the federal SALT (State and Local Tax) cap. Because of that, fewer residents find it worthwhile to itemize.

Taking the larger standard deduction instead can streamline the process while still keeping overall tax liability low. This shift has especially benefited:

• Homeowners whose itemized deductions no longer exceed the new standard deduction

• Renters and younger taxpayers who don’t have mortgage interest deductions to claim

• Seniors and retirees benefiting from the new senior bonus deduction and higher age-based adjustment

Note: New York State’s tax code doesn’t always match federal deductions exactly, so it’s important to check whether the same standard deduction applies when filing your state return. Gregg Jaffe Tax Services works with clients throughout Plainview and across Long Island to ensure both state and federal returns are filed accurately and advantageously.

Should You Still Consider Itemizing?

Itemizing can still make sense if your deductible expenses exceed the standard deduction amount—for example, if you have large medical costs, significant charitable donations, or high mortgage interest payments.

However, for most taxpayers, the standard deduction now offers greater savings with less paperwork. The key is to review both options before filing. A professional tax preparer can run both scenarios to ensure you’re choosing the approach that saves you the most.

How to Maximize Your Tax Savings

Even with the higher standard deduction, there are still smart strategies to lower your overall tax burden:

• Contribute to retirement accounts like a 401(k) or IRA to further reduce taxable income

• Claim all eligible credits, such as the Child Tax Credit or energy efficiency credits for home improvements

• Stay organized year-round with accurate records for medical, education, and childcare expenses—just in case itemizing makes sense next year

Remember, while the standard deduction helps reduce taxable income, tax credits directly reduce the amount of tax you owe—meaning you can often combine both strategies for even greater savings.

File Confidently with Gregg Jaffe Tax Services

The updated standard deduction is a win for simplicity and savings, but every taxpayer’s situation is unique. With over 25 years of experience in public accounting and tax preparation, Gregg Jaffe Tax Services helps individuals and businesses across Plainview and Long Island understand how new tax laws like the OBBBA affect their bottom line.

Gregg provides personalized tax preparation, planning, and bookkeeping support to ensure you get every deduction and credit you’re entitled to.

Phone: 516-770-5305

Contact Form: Get in Touch

Frequently Asked Questions

What is the main benefit of the standard deduction?

It simplifies filing and instantly reduces your taxable income without having to track itemized expenses.

Can I still itemize if I want to?

Yes. Taxpayers can always choose the greater of the two options—standard or itemized—depending on which saves more.

Will the standard deduction change again next year?

Most likely. The OBBBA ties the deduction to inflation, so annual increases are expected to continue in future tax years.