Inflation Refund Checks from New York
A provision in the recently-enacted New York State budget for the 2025 to 2026 fiscal year provides that the state will be sending one-time inflation refund checks to certain individual taxpayers.
To be eligible for a check, the taxpayer must have filed a resident income tax return (Form IT-201) for the 2023 tax year, and must have been a full-year resident during 2023. In addition, the taxpayer cannot have been claimed as a dependent on another taxpayer’s return, and the taxpayer’s income must be below the applicable threshold.
Taxpayers who are married filing joint will receive a $400 check if their 2023 New York adjusted gross income was $150,000 or less, or they will receive a $300 check if their 2023 New York adjusted gross income was $300,000 or less. If income exceeded $300,000, New York will send no check.
Taxpayers who are single, married filing separate or heads of household will receive a $200 check if their 2023 New York adjusted gross income was $75,000 or less, or they will receive a $150 check if their 2023 New York adjusted gross income was $150,000 or less. If income exceeded $150,000, New York will send no check.
Checks are scheduled to be mailed in mid-October 2025. New York will not use direct deposit to make these payments, even if taxpayers provided bank account information for refunds or payments on their 2023 returns.
November 1, 2025 Update: Our original post on June 17, 2025 indicated checks are not included in gross income when received. However, since the checks are treated as a refund of New York State tax, they may be taxable for federal income tax purposes, if a taxpayer itemizes his or her deductions for federal purposes.
There are different interpretations of which year to consider when determining if the taxpayer itemized for federal purposes and how to report the New York check, if the recipient itemizes deductions for federal purposes. (The checks are not taxable for New York State or local income tax purposes.) We will discuss these differing interpretations in our upcoming seminars in December and January.
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