Downloaded the NY 1099-G form and found the amount matching with the New York State Inflation Refund Check I received in 2025. Does it mean the amount is taxable for Federal? Am I supposed to file it under Other 1099-G Income in the 1099-MISC section?

[DoninGA]

Delete 

[DoninGA]

Disregard prior post.  The Inflation refund is taxable on federal tax return but not state.

To enter a Form 1099-MISC that is not for self-employment -

Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to Other Common Income
On Form 1099-MISC, click the start or update button 

On the screen Did you get a 1099-MISC?, click on Yes
On the screen Let's get the info from your 1099-MISC, enter the amount received in box 3 and continue
On the screen Describe the reason for this 1099-MISC, enter a reason and Continue
On the screen Does one of these uncommon situations apply? - Select None of these apply and continue
On the screen Did the (reason) involve work that's like (your name) main job - Select No and continue
On the screen How often did (your name) get income for (reason) - Select 2025 and continue
On the screen Did the (reason) involve an intent to earn money? - Select No and continue

The amount entered from the Form 1099-MISC will be entered on Schedule 1 Line 8z
The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8

[wangml320]

dlonyc clearly stated that 1099-G form was downloaded and entering that info as 1099-MISC seems to be incorrect. I am in the same issue except when I enter under Other Common Income then select State and Local tax Refund, entering the tax year 2025 getting error from TT "Enter a tax year before 2025 - If this refund is from last year's taxes, enter 2024. It seems currently there might be a bug and not allowing me to enter 2025 as the tax year.

[KrisD15]

Technically the New York State Inflation Refund Check is NOT a refund of property tax. It is similar to an Earned Income Credit in so far as it is based on the Taxpayer's income, in this case their 2023 income.

It is based on the Taxpayer's income for tax Year 2023 regardless of whether they itemized or used the standard deduction.

It is not taxable on the state return, but is taxable on your federal return.

There is no good place to enter this 1099-G in the TurboTax program since entering it as "other income" for the Federal return would require you to subtract that amount of other income from your New York return. 

This is the first year New York has issued a payment like this.

I suggest the 1099-G for the New York State Inflation Refund Check be entered as a New York State refund in the TurboTax program.

Select the "Tax return year" on the "Tell us about the refund you received in 2025" as TAX YEAR 2023

Enter zero for "Payments and Withholding"

Enter the amount that you received and is reported on that 1099-G

Select NO for the "Let's check if your 2023 New York refund is taxable" screen 

Once the NO radio button is selected a drop-down opens and you can enter the taxable amount which is the full amount reported on that 1099-G. 

If you also receive a 1099-G for a 2024 state refund, that can be entered separately from this 1099-G.  You will attribute the "rebate" check to tax year 2023 and the State refund to tax year 2024. 

A lot of the answers you give in the program are answers to make the program put this income where it needs to be, they are not answers that are transmitted to the IRS. 

The amount of the New York State Inflation Refund Check will be reported on Schedule 1. 

The total on Schedule 1 is carried forward to Form 1040 line 8.  

Here is a link explaining the New York State Inflation Refund Check

Here is a link explaining the federal taxability of the check 

@dlonyc 

@wangml320 

[user17701539135]

Instructions for IT-201 says the following below. Does this information change what you mentioned above?

And, following your instructions above, which did work, how would that transfer over to the Federal section so that it can be taxed federally?

New York subtractions

Line 25: Taxable refunds, credits, or offsets of state and local income taxes

If you received an inflation refund check from the Tax Department and included the check amount in the calculation of federal adjusted gross income reported on line 19, then enter that amount on line 25.

https://www.tax.ny.gov/forms/current-forms/it/it201i.htm