NYS 1099-G TurboTax Payment Type

[Benbonnett]

There are four choices for "payment type" for the NYS 1099-G inflation refund check received in 2025.  None are applicable for type of government payment: (1) business or farm tax refund  (2) agricultural program payment  (3) federal disaster payment  (4)  market gain on CCC loans.  None of these are applicable.  What to do?

[ReneV4]

To input your NYS 1099-G inflation refund check in TurboTax, you will need to go to a different section. 

1. Go to Wages & Income and click the Add more income box
2. In the Add more income screen, click the down arrow to the right of Other Common Income (Tax refunds, 1099-G...)
3. Select Refunds Received for State/Local Tax Returns
4. Answer the next question by selecting the Yes, I did and Continue
5. Input the information requested in the, "Tell us about the refund you received in 2025" section, then Continue

[Benbonnett]

I had followed that path but when I got there, per my original post, I had to choose among four different reasons for the 1099-G, none of which fit the payment.  It wasn't a tax refund it was an "inflation" payment from New York State.

[TeaTax23]

@ReneV4 

I'm having similar issues using TT Deluxe Online trying to input my 2025 NY 1099-G for the Inflation Refund Check.

As of the time of this post...

If I go through " Refunds Received for State/Local Tax Returns", it will not allow me to enter 2025 as the year.

If I go through "Other 1099-G Income", I am presented with the same 4 options as the original poster, none of which are correct.

The other options for 1099-G relate to unemployment and paid family leave.

It's not clear to me what pathway to use to enter the information for the NY Inflation Refund Check.  Supposedly an update was recently released to deal with the NY Inflation Refund Checks, but I have not seen any new options or guidance on how to actually do it.

[DianeW777]

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.

Do not enter it as Other Income directly or it will not be reflected correctly on both the federal and NYS return.

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

1. Open your return in TurboTax > Select Federal > Wages & Income > Other Common Income >
2. 'Refunds Received for State/Local Tax Returns' > Add or Revisit
3. At 'Did you get a state or local tax refund in 2025?' click YES OR on the Summary screen select Add more refunds
4. 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.
5. On the screen 'Let's check if your 2023 New York refund is taxable' >'Does either apply to your 2023 New York return?'
6. 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.) 
7. 'Tell us the taxable amount of your refund' Enter the dollar amount of the refund > Continue
8. 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.)

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

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

@TeaTax23 

@Benbonnett