Tax Day is here, and Staten Island residents are seeing significant savings as a result of the provisions we fought to secure.
An Op-Ed by Rep. Nicole Malliotakis. As published in the Staten Island Advance
Staten Island families are keeping more of their hard-earned money, with many seeing larger refunds back in their pockets. This is the result of House Republicans and President Trump delivering historic tax relief for working Americans, middle-class families, and seniors here on Staten Island and across the country.
Recent data from the IRS shows that 80% of tax refunds were issued in less than 21 days, with the average refund this year at $3,571— an increase of more than 10% — and total refunds now exceeding $202 billion. Additionally, the Working Families Tax Cuts 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 and secures 7.2 million American jobs.
One of the biggest reasons New York families are seeing 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 are able to deduct up to $25,000 per year, with the deduction phasing out for higher earners providing an average $1,300 tax cut. Workers who earn overtime are able to deduct a portion of that income, up to $12,500 annually ($25,000 for joint filers) delivering an average $1,400 tax cut. It is our hope that Gov. Hochul and the state legislature match these benefits at the state level so these workers can receive double the benefit.
Additionally, the standard deduction has been increased 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 ($400,000 if filing jointly). Finally, we expanded 529 education savings accounts to provide supports 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 on Staten Island and across America. That’s real relief—and it’s exactly what our families deserve.