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The conservative treatment would be to include Form 1099-Q on your federal return under Wages & Income >> Miscellaneous Income >> Other Reportable Income. If it's not taxable, the IRS may adjust your tax refund accordingly.
Several news outlets reported that the inflation refund check is not considered taxable by New York State, but it is by the federal government. The New York Times article (which requires a subscription to read) is the most notable found by searching the internet. The New York State Department of Taxation FAQ article is silent on the taxation issue, so you may wish to contact them directly.
Where do I get Form 1099-Q?
It is not reportable on the Federal return if you took the standard deduction in 2023.
@Davefeld The state of New York would send the 1099-G that reports the inflation reduction check to you. As mentioned above, you don't need to include this in income if you took the standard deduction in 2023. You can just keep it for your records. If you did itemize, you can report this as "Other Income" in the year received.
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