topic How should I enter/report the New York State Inflation Check that was sent out in 2025? Not seeing any where to enter this? in State tax filing

How should I enter/report the New York State Inflation Check that was sent out in 2025? Not seeing any where to enter this?

dianacabreja — Wed, 18 Feb 2026 00:57:48 GMT

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

TomK2023 — Wed, 18 Feb 2026 02:05:20 GMT

You can enter your New York State Inflation Check by following the directions below.

Please see TurboTax Expert KrisD's original answer to a similar question posted below here.

"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 should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

dianacabreja — Wed, 18 Feb 2026 02:37:27 GMT

Thank you for this reply. I did not however receive a 1099-G. Unless this is considered the portion of the paper check that was labeled to not discard and save for tax purposes?

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

MinhT1 — Wed, 18 Feb 2026 12:14:02 GMT

The NY inflation refund checks are not exactly a refund of your NY income taxes.

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

See this NY Revenue document.

Your NY inflation refund check is taxable at the Federal level.

You need to report this income as Other Reportable Income.

In TurboTax Online, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income
Navigate to the list of Income categories
Locate the Less Common Income section and click on the arrow on the right
Click Start next to Miscellaneous Income, 1099-A, 1099-C at the bottom
On the next page, click Start next to Other Reportable Income.

This payment is not taxable at the NY state level.

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

lwkaufman — Mon, 23 Mar 2026 16:47:01 GMT

Did everything you said and still get an error report for having "0" in the "Total Payments and Withholding". So now what do I do?

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

MonikaK1 — Mon, 23 Mar 2026 19:15:47 GMT

There was more than one explanation shared in this thread and I am not sure what you tried. Here's another explanation of the steps for both the Federal return (to report the income) and for the New York return (to subtract the income there).

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

Then, to subtract an item of income from your New York return that was included in your Federal return income (because it's not taxable for New York), you can enter that subtraction 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.

You should not have a zero in total payments and withholding unless you entered a zero in a field where that will cause an error, such as may occur if you entered the payment in the state tax refund section. The "Total of all your payments and withholding" field in the state refund interview includes amounts from your W-2 (Box 17), estimated tax payments, and any extension payments from the prior tax year. This is why we are recommending that the special New York Inflation Refund NOT be entered as a tax refund.

@lwkaufman

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

kooolerking — Mon, 23 Mar 2026 21:35:40 GMT

Entering the NY State Inflation stimulus check under "Misc Income" on the Federal side is straight-forward, however, on the NY State side, you said,

"Then, to subtract an item of income from your New York return that was included in your Federal return income (because it's not taxable for New York), you can enter that subtraction 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."

However, in that "Other Subtractions" section for NY State, TT 2025 Premier desktop only lists a handful of very specific categories for entry, and none of them come close to matching the description for the NY State Inflation stimulus check. So, how and where is this amount entered so that the return is not rejected by NY? Shouldn't there at least be an "other" category added to cover this? Thanks.

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

MonikaK1 — Tue, 24 Mar 2026 00:52:26 GMT

When you go through the questions in the New York return in TurboTax. you will get to a section "Other changes (adjustments) to your federal income".

If you go through that section, you will eventually get to a screen titled "Enter any other subtractions" with a list of items from which to choose (different versions of TurboTax may have the screens organized differently). One of the items on that list is "Taxable refunds (not included in line 4 of IT-201/IT-203)". You can enter the New York Inflation Refund amount you received and reported on the Federal return in the Federal column, and enter "0" in the New York column. This will allow TurboTax to subtract the amount from the New York return.

@kooolerking

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

kooolerking — Tue, 24 Mar 2026 11:01:01 GMT

OK, for choosing the category for entering this NY State subtraction, you said;

"One of the items on that list is "Taxable refunds (not included in line 4 of IT-201/IT-203)"."

I did see that listed among the various options to choose from, however, this NY State stimulus payment is NOT technically defined as a tax refund, as well as, you had also previously advised the following;

"... we are recommending that the special New York Inflation Refund NOT be entered as a tax refund."

So, this appears to be a contradiction ... is it? What happens if a tax return filled-out as you have suggested is not accepted by NY State, then what?

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

RobertB4444 — Tue, 24 Mar 2026 20:06:24 GMT

It IS a tax refund - a sales tax refund. It is NOT an income tax refund. Theses are different categories but the end result is the same and you should select that option from the drop down in order to make sure to remove it from your New York income tax return.

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

Sikkasill — Mon, 06 Apr 2026 22:37:13 GMT

What are the steps I need to take if I have already filed my taxes?? New York State is filed/"ready to mail" status, and the Federal I was in the process of amending to try and add this inflation check but I have been increasingly confused on what the RIGHT WAY of doing this is...

Re: How should I enter/report the New York State Inflation Check that was sent out in 2025? Not s...

AmyC — Mon, 06 Apr 2026 23:26:03 GMT

100% correct is NY does not tax the inflation check.

The IRS has not issued guidance so nobody knows if it is federally taxable. We tend to err on the side of caution, better to pay a few dollars and be wrong than to willfully not include income. However, once the IRS decides, you will either amend your return or deal with the IRS then. Most of us think it is less hassle to include it. It is your tax form and you get to choose. There is no right way at this time for the federal.