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 you qualify for the payment, you do not need to take any action.
Will I receive an inflation refund check?
You are eligible for a refund check if your 2023 New York state return meets the following requirements:
- You 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.
What are the qualifying thresholds and how much is the refund?
The qualifying thresholds are shown below in the middle column. Based on your 2023 New York AGI and filing status, you can find your inflation refund check amount in the last column below.
How and when will I receive my payment?
New York will begin mailing refund checks to eligible taxpayers by the end of September 2025. No application is required. Checks are mailed automatically to the address on the most recently filed NY tax return. You may receive your check sooner or later than your neighbors, as mailings are not based on zip code or region. New York cannot provide a specific delivery schedule, and states that their Contact Center representatives will not have additional information on the status of checks.
How do I report/claim this on my return?
Your check may be taxable federally, depending on your 2023 tax filing:
-
Took standard deduction in 2023?
✅ Not taxable federally - Do not report on return
✅ Not taxable in New York- Do not report on return -
Itemized deductions AND claimed state income taxes in 2023?
⚠️ Taxable federally- Report the 1099-G on the return. Include information for the
✅ Not taxable in New York
To report the taxable portion of the NY Inflation Refund Check, go to:
Federal Section → Income → Less Common Income → Other Income → Other Income.
Enter the taxable amount there.
The taxpayer will need to calculate the taxable portion separately by using the State & Local Income Tax Refund Worksheet from the 2025 Form 1040 Instructions, but substitute their 2023 state tax information when completing it, since the refund is treated as a 2023 state tax refund
Additional Information
- Address Updates: If a taxpayer has moved since filing their 2024 return, they can update their address via their Online Services Account.
- Outstanding Debts: Inflation refund checks will not be offset for debts owed to NYS or other agencies.
- New York Department of Taxation and Finance