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Yes.
The 1099-G for the New York State Inflation Refund Check can be entered as a New York State refund in the TurboTax program.
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
Thanks, the only question I have is the part about putting $0 for "payments and withholding". The TT instructions say to enter the amount from your 2024 taxes. Does that not apply here because it's not considered a refund from 2024? btw in my case it didn't matter when I zeroed it out, the refund does not seem to be taxable in my case.
No, it does not apply here because it's not a refund or your state tax from your 2024 tax return. It is a special inflation adjustment that was paid to some New York State (NYS) residents for a 2023 tax year.
The full amount should be taxable on your federal return following the steps outlined. Be sure to select 'No' when asked to see if it's taxable.
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