i received a inflation reduction check from new york state in 2025.do i have to put it on my return if yes how.

[MinhT1]

Your NY inflation refund check is taxable at the Federal level.

You need to report this income as Other Reportable Income.

In TurboTax Online, open your return and follow these steps:

1. Click on Federal in the left-hand column, then on Wages and Income
2. Navigate to the list of Income categories
3. Locate the Less Common Income section and click on the arrow on the right
4. Click Start next to Miscellaneous Income, 1099-A, 1099-C at the bottom
5. On the next page, click Start next to Other Reportable Income.

This payment is not taxable at the NY state level.

[dlonyc]

I tried to report the inflation refund check to Other 1099-G Income under the 1099-MISC and Other Common Income section.  However, I have to provide what type of payment did I received as options below:

* Taxable grant

* Agricultural program payment

* Market gain on CCC loans

* Reemployment trade adjustment assistance (RTAA) payment

* Business of farm tax refund

However, the inflation refund check does not fit into any of those options.  Can anyone help here?

[Edxl145]

If you look at the answer just before your question, you will find that is how to do it. At least according to that individual. I tried it and it worked. Turbotax does have the place later where you can make sure it is excluded from New York State income so it is not taxable in New York. Click on "Credits and Other Taxes".  The first item on the next screen is "Inflation Refund Check". Click on that to enter the amount of your check. That is how it is excluded from you New York taxable income. 

[luick]

How do you take it off the NY taxes so you don't get taxed on it?

[KrisD15]

Exactly,

You can't enter it as "other Income" or 1099-MISC since it will then be taxed on your state return. 

Please only enter it this way:

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

• Income
  Other Common Income
  State and Local Tax Refunds on Form 1099-G   START or UPDATE

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 which 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 tax refund, that can be entered separately from this 1099-G.  You will attribute the "inflation refund" check to tax year 2023 and the State refund (if you received one) to tax year 2024.

This is the first year New York has issued a payment like this.
There is no one dedicated screen to enter this 1099-G in the TurboTax program.

Technically the New York State Inflation Refund Check is NOT a refund of 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, 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.

Some answers you give the program are answers to make the program put the numbers where they need to go, 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
 

[Edxl145]

Until yesterday, TurboTax had the mechanism I previously described in place  to do eliminate it from New York taxes until New York rejected my filing. TurboTax told me they had an error that they fixed. They didn't. They just removed the mechanism which resulted in the reduction amount being subject to NY tax. Since my federal return was already accepted, the only thing I could do as a workaround was to remove the amount in question from my federal income and then file the state return again. As of this writing, I'm still waiting to see if the State accepted it. Even if it does, I am concerned that a difference between the Federal AGI on the IT-201 and the 1040 could flag an alert, even though th bottom line result is correct.

[aleanbh]

Does anyone have an alternate way to report this, since the previous method was removed by Turbo Tax?

[MarilynG1]

In the Income section, scroll down to Miscellaneous Income, 1099-A, etc.  On the next page, scroll down to Other Reportable Income and enter Description/Amount.

Then, in the NY interview, enter it as a Subtraction from Income on Form 225.  

The result on IT-201 shows the income on Line 16, and the subtraction on Line 31.

@aleanbh 

[mikesyr]

My turbotax deluxe does not have a line of inflation refund check.  The first line is Property Tax Relief for Star Credit.  So anyone know how to subtract the Inflation Refund Check?

[DoninGA]

@mikesyr The New York Inflation Reduction check you received is not reported on a New York state income tax return.

[mikesyr]

Cmon TurboTax get your act together and give us the definitive answer. I don't itemize deductions. I have not found a solution on subtracting the amount from my NY state taxes. Jeez!

[DoninGA]

@mikesyr

• How to Report: The payment is considered income on federal taxes. It should be included in federal adjusted gross income (AGI).
• NY Tax Return: As the check is based on 2023 tax data, it is not considered taxable income on the 2025 New York State tax return, as it is a refund of state taxes already paid.

[MonikaK1]

If you need to subtract an item of income from your New York return that was included in your Federal return income, you can enter that adjustment in TurboTax Online at the screen in your New York return labeled "Changes to Federal Income". 

Look under Other New York Adjustments to Federal Income, and select Start next to Other changes (adjustments) to your federal income to make the subtraction entry.

@mikesyr 

[mikesyr]

This is how I finally settled this using TurboTax deluxe desktop edition.

I followed MinhT1’s instructions and then as a final step, I entered the check amount into ‘Other Reportable Income.’ I labeled it as a New York inflation refund check.  
Then I followed MonikaK1’s to ‘Other Reportable Income.’ I then went to the ‘Enter Any Other Subtractions’ page. Near the bottom, I put the subtraction amount into the ‘Taxable refunds (not included in line 4 of IT-201/IT-203)’ box.