From what I can find online, the NYS inflation refund checks appear to be taxable at the federal level, for everyone. Per the NY.gov site, link below, the refund was based on your income and filing status, not whether you itemized deductions. Per several articles online, two links below, the state could have structured the refund program differently to potentially avoid federal taxation, but they didn't do so for whatever reasons. I may be mistaken, but that's how I'm interpreting it.
https://www.tax.ny.gov/pit/inflation-refund-checks.htm
https://www.syracuse.com/politics/2025/10/ny-inflation-refund-checks-are-taxable-what-you-need-to-kn...
https://www.wxxinews.org/new-york-public-news-network/2025-10-01/you-should-report-gov-kathy-hochuls...
