Retirement brings plenty of decisions: when to stop working, how to spend your time and what your monthly income will look like. Taxes can feel like one more thing to untangle.

Your income may now arrive from several places instead of one paycheck. Each source can have different rules, and the federal and New York answers may differ. Start by naming the sources. You don’t need to understand every tax form before asking for help.

Your retirement income isn’t all treated alike

A pension, a traditional IRA withdrawal and Social Security may all land in the same checking account. That doesn’t make them the same for taxes.

Pension and annuity payments can be fully or partly taxable federally. Contributions you already paid tax on can affect the taxable portion. Keep the information from your plan rather than assuming the whole deposit is taxable. IRS pension guidance

Traditional IRA distributions are generally taxable, while Roth IRA distributions can be tax-free when the qualification requirements are met. The word “Roth” alone doesn’t settle every withdrawal question. Traditional IRAs · Roth IRAs

Bring the Forms 1099-R you receive and mention any rollover or account transfer. That context helps us understand what happened, rather than guessing from a bank deposit.

Social Security needs a look at your other income

If Social Security is your only income, your benefits may not be taxable federally. Other income can change that result. The IRS calculation considers your filing status, other income and a portion of your benefits. IRS Social Security guidance

For example, someone collecting benefits while still working part time may have a different result from someone living only on benefits. A larger retirement-account withdrawal may also change the picture.

Keep your SSA-1099 with the rest of your tax documents. We can review the household’s full income instead of looking at Social Security in isolation.

New York has its own retirement rules

For New York residents, Social Security benefits included in federal income are generally subtracted when calculating New York income. Certain government pensions may also qualify for an exclusion. Other qualifying pension and annuity income may be eligible for an exclusion of up to $20,000 per person, subject to age and other requirements. New York guidance for seniors

So a payment that is taxable on your federal return may be treated differently on your state return. Tell us the pension’s source and whether you moved during the year. Those details matter more than simply calling something “retirement income.”

There is also a temporary deduction for eligible seniors

For tax years 2025 through 2028, eligible people age 65 or older may qualify for an additional federal deduction of up to $6,000 per person. Income limits and other requirements apply. Married taxpayers must file jointly to claim it. This deduction does not make all Social Security benefits tax-free. IRS senior deduction

It is one item to review alongside the rest of the return, rather than a reason to assume no tax will be due.

Bring these items to your first retirement tax conversation

  • Pension and retirement-account Forms 1099-R.
  • Your Social Security statement, if you receive benefits.
  • Forms for wages, interest and investment income.
  • Last year’s return and any tax payment records.
  • A note about rollovers, a move or a planned large withdrawal.

If you are retiring midway through the year, mention that too. Your first retirement return may include both work income and retirement income.

For clients in Buffalo and Western New York, we can help explain how those pieces fit together. Request a Free Consult before a major withdrawal or your first retirement filing. Bring the information you have and the question on your mind.

You don’t have to figure this out alone

You don’t have to calculate retirement taxes or figure out deductions on your own. At Ziggy’s Tax Advantage, we handle the numbers and carefully review the credits and deductions you qualify for. We help you claim every dollar you’re entitled to, so you can enjoy your next chapter with less stress and worry.