New York State Inflation Reduction check 2025

Forum|Forum|4 months ago
January 24, 2026
1 reply
4 views

How do I process (Turbo Tax 1040) the $400 we received from the New York State Inflation Reduction program in the fall of 2025?

xmasbaby0

Level 15

You do not need to enter that as taxable income into your 2025 return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Taxi_NerdAuthor

Level 2

Focusing on the 1040. NYS issued a 1099-Q to all recipients. The 1099-Q matters. Where do we go from there? Not sure that it is simply not taxable.

PatriciaV

Level 15

The conservative treatment would be to include Form 1099-Q on your federal return. 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.

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