topic How to enter your NYS Inflation Check <<>> in Get your taxes done using TurboTax

How to enter your NYS Inflation Check <<>>

user17701539135 — Sun, 08 Feb 2026 04:12:16 GMT

It took me weeks to finally figure this out! Once you enter your numbers, go to Tax Tools > Tools > View your 1040. The Refund check will be there and the amount will be transfered to all correct areas for federal!

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

Open your return in TurboTax.
Go to Federal.
Go to Wages & Income.
Depending on where you're at click:
a. '+ Add more income' and then/or
b. 'Refunds Received for State/Local Tax Returns'
c. Click 'Add' or 'Revisit'
At 'Did you get a state or local tax refund in 2025?' click YES
When asked about the refund you received in 2025, enter:
State: New York
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

Why do we select NO?

We selected 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.

8. TurboTax will then ask:
“Tell us the taxable amount of your refund”

9. Enter the dollar amount of the refund. Click Continue.

10. Continue through the rest of the Federal section.

11. Now go to State and complete your New York return as normal.

12. For federal confirmation, open your 1040.

13. Look at Line 8z (Other income).
14. You should see your half (or all) of the refund included there.

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

KEY POINTS TO REMEMBER

The check is based on 2023 income but taxed federally in the year received.
TurboTax explanations about 2024 are generic and can be ignored.
Do not split any other way.
Do not enter it as Other Income directly.

To confirm:

Where it shows up on the federal 1040

On the 2025 Form 1040, the inflation refund shows up as “Other income.”

Look at:

Schedule 1 (Form 1040)
➡ Part I – Additional Income
➡You'll see your refund amount in Schedule 1, line 10
➡ Form 1040, line 8 (via total income)

To really confirm:

1. Look at your Federal and State returns BEFORE you do all this, and then once youre done. Your FEDERAL will go down by the amount of your tax bracket.

This one is for the history books!!! Share this with as many people as you can : )

Re: How to enter your NYS Inflation Check <<>>

v8899 — Tue, 10 Feb 2026 12:56:48 GMT

Thanks. This workaround works, but 99.9% of taxpayers will not do this because it requires you to answer incorrectly to questions regarding the standard deduction in 2023.

TurboTax really needs to release another update to make this straightforward for people to enter.

Re: How to enter your NYS Inflation Check <<>>

MonikaK1 — Tue, 10 Feb 2026 16:13:16 GMT

Here's another option we've shared:

Because the special New York Inflation Refund is not a regular tax refund but a special payment that is taxable at the Federal level, you can report it instead in Other Reportable Income. In TurboTax Online:

From the left menu, go to Federal and select the first tab, Wages & Income
Add more income by scrolling down to the last option, Less Common Income, and Show more
Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
Choose the last option, Other reportable income and Start and Yes
Enter the applicable description and amount and Continue

If you need to subtract an item of income from your New York return that was included in your Federal return income, you can enter that adjustment in TurboTax Online at the screen in your New York return labeled "Changes to Federal Income".

Look under Other New York Adjustments to Federal Income, and select Start next to Other changes (adjustments) to your federal income to make the subtraction entry.

@user17701539135

@v8899

Re: How to enter your NYS Inflation Check <<>>

user17707668045 — Wed, 11 Feb 2026 00:31:09 GMT

I agree. I saw something about a new release coming out on February 12th? Also, lots of people complaining about that their New York State tax was rejected because of all this?

Re: How to enter your NYS Inflation Check <<>>

v8899 — Wed, 11 Feb 2026 00:57:15 GMT

Might be a good idea to wait to file a few more weeks, in case more guidance gets released. In the past years IRS issued guidance for these types of relief checks.

Re: How to enter your NYS Inflation Check <<>>

KrisD15 — Wed, 11 Feb 2026 01:04:26 GMT

Of course you can wait, but since the "refund" is not based on any tax, it seems very unlikely that the IRS will change their stance on the income being taxable on the federal return.

The 1099-G for the New York State Inflation Refund Check can be entered as a New York State refund in the TurboTax program.

Income
Other Common Income
State and Local Tax Refunds on Form 1099-G START or UPDATE
Select the "Tax return year" on the "Tell us about the refund you received in 2025" as TAX YEAR 2023
Enter zero for "Payments and Withholding"
Enter the amount that you received which is reported on that 1099-G
Select NO for the "Let's check if your 2023 New York refund is taxable" screen
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

Re: How to enter your NYS Inflation Check <<>>

v8899 — Wed, 11 Feb 2026 01:40:34 GMT

I don’t think it’s so clear cut. See this discussion for example:

https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=35598

Anyway I don’t mind paying tax on the $400, it’s really not that much. I just hope TurboTax makes an update to handle this properly so people are not guessing.

Re: How to enter your NYS Inflation Check <<>>

user17707668045 — Wed, 11 Feb 2026 03:16:31 GMT

I think everyone is missing the point. I don't want to do all this and get stuck when NY rejects my return. I spoke to someone from Turbo Tax and they didn't have a clue how to do this properly. I called the IRS and they said its a NY problem. I called NYS and the said to manually update lines 19 and 25. You'll have to call Turbo Tax or the IRS about Federal. Everyone keeps passing the buck. The NY guy even said try HR Block software. There are differences between the desktop version and the web-based version. Supposedly, something was "fixed" on the web-based version on Feb 5th? Has ANYONE successfully entered their NY State Tax Relief as a second 1099-G and able to have it flow through properly and be accepted by NY using the DESKTOP version??

Re: How to enter your NYS Inflation Check <<>>

kooolerking — Wed, 11 Feb 2026 20:25:38 GMT

I am not comfortable trying to fake-out TurboTax with the suggested work-around as I think it may trigger audit or error problems down the road. The "Inflation Refund" payment was received in the 2025 Tax year, regardless of the tax year figures NY State used to calculate it.

The specific issue is that as of the current update, TurboTax 2025 limits 1099-G entries to categories not fitting the NY State "Inflation Refund" payment which is NOT any of the following;

unemployment
a state or local tax refund
a grant
a business / farm refund
an Agricultural payment
etc.

At this point, without "fudging" on the TT software entries, there seems to be no way to correctly enter this 1099-G amount to have it taxed on the Federal but not on the State for the tax year 2025.

When is Intuit expected to be updating TT 2025 to fix this hole in the software?

Re: How to enter your NYS Inflation Check <<>>

MonikaK1 — Wed, 11 Feb 2026 20:33:53 GMT

It often happens that a state will issue a payment to help taxpayers that is not taxable to that state, but taxable on the Federal return. These change from year to year and may even change during the filing season. For 2025, the special New York taxpayer assistance payment is nontaxable to New York but taxable on the Federal return.

From the left menu, go to Federal and select the first tab, Wages & Income
Add more income by scrolling down to the last option, Less Common Income, and Show more
Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
Choose the last option, Other reportable income and Start and Yes
Enter the applicable description and amount and Continue

Look under Other New York Adjustments to Federal Income, and select Start next to Other changes (adjustments) to your federal income to make the subtraction entry.

@kooolerking

Re: How to enter your NYS Inflation Check <<>>

kooolerking — Wed, 11 Feb 2026 20:58:43 GMT

Thanks for the reply, however, that method does not work very well as it initially gets taxed for both the Federal and NY State. Then, manually "fixing" the NY State portion as an adjustment in the NY State filing is a rather awkward work-around. Additionally, such a manual entry loses the detail of the NY State issued 1099-G and adds a lot of manual work that could lead to error or trigger an audit.

Why not simply add an "Other 1099-G" category that allows the flexibility to enter the various 1099-G box values, as well as, check boxes for the various situations such as "not taxable for State / local" , etc. and apply it automatically to the Federal and State forms? Such an approach should be flexible enough to address the year-by-year and state-by-state changes and variations that you mention.

Re: How to enter your NYS Inflation Check <<>>

shmeyers1 — Fri, 13 Feb 2026 17:12:12 GMT

Thanks for your research and step by step input directions for posting the New York State Inflation Adjustment check for federal and NY purposes. Much appreciated.

Re: How to enter your NYS Inflation Check <<>>

gafuller123 — Fri, 13 Feb 2026 19:30:37 GMT

I called Turbo Tax today and was told if you didn’t itemize this year or in 2023, and took the standard deduction, you don’t need to add the inflation check anywhere. He said you only need to list it if you itemize. I wish they’d release official information on this.

Re: How to enter your NYS Inflation Check <<>>

BrooklynJeff — Fri, 13 Feb 2026 22:43:03 GMT

Thanks. I would certainly like to have that in writing!

That would certainly makes sense if this is a tax refund and i did not previously take a deduction against it. What business is it of Uncle Sam if NY wants to charge me less tax?

But what do I know ...

Re: How to enter your NYS Inflation Check <<>>

KrisD15 — Fri, 13 Feb 2026 23:04:41 GMT

The issue is that the "Inflation Refund" is not refunding you tax, it's based on your 2023 income, but not on your tax, and not on any tax that you paid or claimed on any previous tax returns.

In my opinion it needs to be claimed regardless of whether you took the Standard Deduction or Itemized.

"The 1099-G for the New York State Inflation Refund Check can be entered as a New York State refund in the TurboTax program.

Income
Other Common Income
State and Local Tax Refunds on Form 1099-G START or UPDATE
Select the "Tax return year" on the "Tell us about the refund you received in 2025" as TAX YEAR 2023
Enter zero for "Payments and Withholding"

Enter the amount that you received which is reported on that 1099-G

Select NO for the "Let's check if your 2023 New York refund is taxable" screen

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.

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.

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

Re: How to enter your NYS Inflation Check <<>>

BrooklynJeff — Fri, 13 Feb 2026 23:42:10 GMT

Thanks for the great info.

Not meaning to argue, but I'm just having a hard time getting over the semantics here - Is it a refund or not?

According to the NY Tax site https://www.tax.ny.gov/pit/inflation-refund-checks.htm

"The 2025–2026 New York State budget provides for the state’s first-ever inflation refund checks.

These one-time payments provide relief to New Yorkers who have paid increased sales taxes due to inflation"

So NY decided to charge us less sales tax. So they gave some of it back. How does that entitle uncle Sam to dip his hand into our pockets.

Maybe NY botched it by issuing a 1099 ?

Re: How to enter your NYS Inflation Check <<>>

DaveF1006 — Sat, 14 Feb 2026 00:24:53 GMT

It depends. New York called it a “refund,” but the IRS calls this a stimulus payment.. What matters is what the payment‌ represents under federal tax law.

And here’s the key: This NY “inflation refund check” is not a refund of sales tax you personally paid. It’s a state benefit payment, and that’s why the IRS can treat it as taxable.

The IRS only excludes state payments from income when they are:

1. A refund of tax you actually paid, AND

2. You claimed that tax as a deduction on your federal return

The New York inflation check doesn't represent either of these. This is a stimulus check. and stimulus‑type payments are taxable unless Congress says otherwise. Congress didn’t exempt this.

Re: How to enter your NYS Inflation Check <<>>

user17701539135 — Sat, 14 Feb 2026 15:57:55 GMT

This is not correct

@gafuller123

Re: How to enter your NYS Inflation Check <<>>

minike — Tue, 17 Feb 2026 19:44:13 GMT

Thank you for figuring it out. On the form, TurboTax filed in the 2024 payment but it requested the 2023. Once entered, it added it in and the NY form subtracted it. Thanks.

Re: How to enter your NYS Inflation Check <<>>

BrooklynJeff — Fri, 20 Feb 2026 21:33:18 GMT

Followed the steps outlined in this thread STEP BY STEP – NY INFLATION REFUND CHECK IN TURBOTAX (1099-G), and was able to get the (mostly) expected results.

My $200 refund is included in the Fed taxes (1040 line8 ) and subtracted from NYS (IT-201 line 25)

BUT here's a good one for you - while my NY tax did not increase, my fed tax increased by $107 !!

Since I'm in a modest 22% bracket I'm quite surprised that they're grabbing over 50%

I think i did everything right and the high number is coming from an increase in the taxable amount of my social security. So instead an income increase of $200, it is now $390 (looking at line 15)

Any thoughts? (other than saying "Congrats NYS - you gave more to uncle Sam than to me")

topic How to enter your NYS Inflation Check <<< I figured it out! >>> in Get your taxes done using TurboTax

How to enter your NYS Inflation Check <<< I figured it out! >>>

To confirm:

Where it shows up on the federal 1040

Look at:

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

1. A refund of tax you actually paid, AND

2. You claimed that tax as a deduction on your federal return

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>

Re: How to enter your NYS Inflation Check <<< I figured it out! >>>