I received a 1099-G for an "Inflation Refund." Box 1 says for the tax year 2025. However, TurboTax will not accept 2025 as the tax year. Where should this be added?

[DoninGA]

If this is from New York state, the inflation reduction income you received is not reported on a federal or state tax return.

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[Rates Payer]

I just called the New York tax department and they said the "New York Inflation Refund" is tied to the 2023 tax returns. So it seems like we should put 2023 in the box for the tax year. I guess

[DoninGA]

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@Rates Payer wrote:

I just called the New York tax department and they said the "New York Inflation Refund" is tied to the 2023 tax returns. So it seems like we should put 2023 in the box for the tax year. I guess

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As previously stated, the Inflation Refund is not reported on a federal or state tax return.

Federal Tax: The NY inflation refund is typically treated as a "payment for a specific purpose" and is not included in your federal taxable income.
New York State Tax: For New York personal income tax purposes, these payments are also generally not considered taxable income.

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[princkbk]

I just did my taxes - this did not get reported on federal but there was a spot on NY tax that asked for amount of refund, but it did not affect the result.

[v8899]

I'm not sure this is correct. See below:

https://gothamist.com/news/you-should-report-gov-hochuls-inflation-refund-checks-on-your-taxes

"State officials confirmed to Gothamist that the checks, which will start arriving this week, are subject to federal income tax. Federal charges won’t be deducted from the face value of the rebate checks, so it will be up to New Yorkers to report the rebates on their 2025 income tax returns when they’re filed next year."

[robs462]

I agree with @v8899 .   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.

@princkbk 

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...

[ez10977]

NYS issued 1099-G forms to individuals who received the 2025 rebate check, but the year indicated on the 1099-G is 2025.

To clarify, generally, if you receive a 2025 1099-G from any state with a 2024 year on it, this implies it is taxable if you itemized your deductions in 2024. This is because you would have gained a federal tax benefit in 2024 from the taxes paid to that particular state, and therefore, if refunded, you must recapture that deduction at the IRS level and report it as income in 2025. The same principle applies if you received a 2025 1099-G with a 2023 year on it; its taxability depends on whether you itemized your deductions in 2023.

However, this situation is different. The rebate check was not a refund for taxes paid in 2023; instead, it was a general refund distributed to all families meeting specific income limitations. Therefore, what NYS is indicating with this 1099-G form is that if you itemize your deductions in 2025—for instance, claiming $10,000 in NYS income taxes paid and $12,000 n property taxes paid—you will need to report this rebate check as other income to the IRS. Failure to do so would result in a duplicate gain for you.

Consequently, there is no need to review your 2023 tax records to determine if you itemized. ​This rebate is exclusively taxable for individuals who itemize their deductions in 2025.​