NYS Inflation refund checks to IRS

Forum|Forum|3 months ago
February 28, 2026
3 replies
9 views

Does anyone has any guidance on how to enter the $200 dollars issued by NYS to the IRS? I do not itemize my deductions so what will happen if I failed to enter. I don't see any guidance from TurboTax on how to do it.

Thanks

Best answer by MaryK4

STEP BY STEP – NY INFLATION REFUND CHECK IN TURBOTAX (1099-G)

Open your return in TurboTax.
Go to Federal.
Go to Wages & Income.
Scroll to State and Local Tax Refunds (1099-G) and click Start or Edit.
When asked about the refund you received in 2025, enter:
Tax return year: 2023
Payments and withholding: 0
Refund amount: enter full amount for MFJ or ONLY YOUR SHARE if half of the total amount on the 1099-G
Continue.
You will see the question: “Does either apply to your 2023 New York return?”
Even though you took the standard deduction, select: NO (Select NO because the NY inflation refund is not a normal tax refund, and choosing NO forces TurboTax to include it in federal income while subtracting it from New York tax, which is exactly what NY requires.)
TurboTax will then ask: “Tell us the taxable amount of your refund” Enter the SAME AMOUNT you entered in step 5

For federal confirmation, open your 1040- Look at Line 8z (Other income)-You should see your half (or all) of the refund included there.

If Schedule 1 line 8z includes it AND IT-201 line 25 subtracts it, everything is correct.

MaryK4Answer

Level 15

STEP BY STEP – NY INFLATION REFUND CHECK IN TURBOTAX (1099-G)

Open your return in TurboTax.
Go to Federal.
Go to Wages & Income.
Scroll to State and Local Tax Refunds (1099-G) and click Start or Edit.
When asked about the refund you received in 2025, enter:
Tax return year: 2023
Payments and withholding: 0
Refund amount: enter full amount for MFJ or ONLY YOUR SHARE if half of the total amount on the 1099-G
Continue.
You will see the question: “Does either apply to your 2023 New York return?”
Even though you took the standard deduction, select: NO (Select NO because the NY inflation refund is not a normal tax refund, and choosing NO forces TurboTax to include it in federal income while subtracting it from New York tax, which is exactly what NY requires.)
TurboTax will then ask: “Tell us the taxable amount of your refund” Enter the SAME AMOUNT you entered in step 5

For federal confirmation, open your 1040- Look at Line 8z (Other income)-You should see your half (or all) of the refund included there.

If Schedule 1 line 8z includes it AND IT-201 line 25 subtracts it, everything is correct.

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TanLxyz

Level 2

I enter the NYS Inflation Refund as suggested by going to the State/Local Tax Refunds on Form 1099-G with update clicked. I then click on the “Add more refunds” and proceed to enter the information for this NYS Inflation Refund with a “NO” response to taking the standard deduction on my 2003 NY return even though that is not true. At the end, that amount is taxable and reflected in my 2025 Form 1040 line 8 as additional income from Schedule 1 line 10. However in schedule 1, this amount is shown on line 1 as taxable refund not on line 8z other income as indicated to confirm. Also how do I show on my return that this amount is the NYS Inflation Refund and not some other taxable refund? Am I entering this correctly or am I misinterpreting how to input this? Please provide a clearer line by line input instructions for this NYS Inflation Refund? Not clear where you get the “Add more income” from the State/Local Tax Refunds section!!!

DianeW777

Level 15

Please review the steps again below and be sure you follow them carefully.

If you did not have any other 1099-G forms, then you may not see the 'Add more income' selection. This solution has been successful. If you do need to remove any zero entries (besides the ones indicated in the instruction) be sure to use the 'Delete' key to remove any unnecessary entries.

The following steps should help with the answers when entering the New York State (NYS) inflation refund check. By using the steps below it will be subtracted from your NYS income and taxed to federal as required.

STEP BY STEP – NY INFLATION REFUND CHECK IN TURBOTAX (1099-G)

Open your return in TurboTax > Select Federal > Wages & Income > Other Common Income >
'Refunds Received for State/Local Tax Returns' > Add or Revisit
At 'Did you get a state or local tax refund in 2025?' click YES OR on the Summary screen select Add more refunds
When asked about the refund you received in 2025, enter the following:
- State: New York
- Tax return year: 2023
- Payments and withholding: 0 (be sure to enter the zero)
- Refund amount: enter full amount you received or ONLY YOUR SHARE (half if MFS)
- Continue.
On the screen 'Let's check if your 2023 New York refund is taxable' >'Does either apply to your 2023 New York return?'
Even though you took the standard deduction, select: NO (this is not a regular state refund-- Note: TurboTax will include it as taxable on your federal return while subtracting it from NYS correctly.)
'Tell us the taxable amount of your refund' Enter the dollar amount of the refund > Continue
When the federal return is complete, go through your state return, then you can preview each return.

If you would like to preview your form you can use the steps below. (Form 1040, Line 8z-Other Income).

IT-201 will show the subtraction from NYS income.

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

Select Tax Tools
On the drop-down select Tools
On the pop-up menu titled “Tools Center”, select View Tax Summary
On the left sidebar, select Preview my 1040

For TurboTax Desktop, change to 'Forms' and review the forms.

@TanLxyz

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User126986

Level 2

The problem is that once I entered $0 for total withholding and payments, an error message appeared and siad it needs to be fixed in order to file the federal Return.

AmyC

Level 15

Since the program does not like the zero, change it to blank. The program has preferences between zero and blank in different areas and with different programs and updates.

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user17724695251

Level 2

On my return, when the field is blank, it is rose-colored and the red "not done" flag is raised in the 'Forms in my return' column.

I tried putting numbers in the "Total payments and withholding" box. It accepts 2500 (normal flesh background color) but turned rose-colored when I entered 2400 (as it does with blank).