New York Inflation Refund Checks
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New York's 2025-2026 budget allows for inflation reduction checks. These one-time payments will be sent out to New Yorkers who paid increased sales tax due to inflation. If the taxpayer qualifies for the payment, they do not need to take any action, the state will send the refund.
Taxpayers are eligible for a refund check if their 2023 New York state return meets the following requirements:
- They filed a 2023 Form IT-201, New York State Resident Income Tax Return;
- reported income within the qualifying thresholds (below); and
- were not claimed as a dependent on another taxpayer’s return.
- Must have been a full-year New York resident in 2023.
Note: Part-year residents and those who did not file a 2023 NY resident return are not eligible.
New York State Inflation refund qualifying thresholds
Qualifying thresholds are shown below in the middle column. Based on the 2023 New York AGI and filing status, the inflation refund check amount in the last column below.
When to report the New York State Inflation Refund
This maybe taxable federally, depending on the 2023 tax filing information:
-
Did the taxpayer take a standard deduction in 2023?
Not taxable federally - Do not report on return
Not taxable in New York- Do not report on return -
Did the taxpayer itemized deductions AND claimed state income taxes in 2023?
Taxable federally- Report the 1099-G on the return
Not taxable in New York. - Do not report on return
- Income
- State & Local Refunds (1099-G, box 2)
The Tax Processors Plus Desktop program will automatically subtract this from the New York State income.
Additional Information: