How do you claim the NYS Inflation Tax credit on federal return

[DoninGA]

New York's inflation refund checks (up to $400) are generally not taxable federally or by New York State because they are considered a government assistance payment for specific relief, not a refund of prior-year taxes

[princkbk]

So we don't report it on our Federal form? One answer said to put it under 1099-MISC but that form is asking for the federal ID number which I don't have. Thank you.

[DaveF1006]

Yes, the NYS Inflation Credit (inflation refund check) is potentially taxable at the federal level. While New York State doesn’t tax this payment, you may need to report it on your 2025 federal return. 

The IRS follows the Tax Benefit Rule.

1. If you took the Standard Deduction in 2023: The check isn’t taxable, and you don’t need to include it on your federal return.
2. If you itemized deductions in 2023: Part of the check may be taxable if you claimed state income taxes on last year’s Schedule A.

 NYS considers this a return of your 2023 state income taxes.  It needs to be reported as a refund of your 2023 state income taxes. To report it properly:

1. In TurboTax, go to Federal > Wages & Income.
2. Scroll down to Other Common Income.
3. Select Refunds Received for State/Local Tax Returns (1099-G).
4. Even if you didn't receive a physical 1099-G in the mail, you enter it here. New York considers these "inflation checks" to be an overpayment/refund of your 2023 taxes.
5. When prompted for the "Payer," you can simply enter "New York State" or "NYS Dept of Taxation."
6. If it asks for an EIN, use 14-6013200 as this is the official NYS Taxation EIN number.

Remember, if you received the standard deduction in 2023, this is not reported on your federal return.

[robs462]

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.

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...

[aplatner]

Wake up turbotax!  At this point - since we're paying Intuit - it would be nice if they bothered to read this thread and give a final answer since there are competing answers. 

[Karis_F]

The NYS Inflation Credit (inflation refund check) is potentially taxable on your 2025 federal tax return if you itemized deductions on your 2023 federal tax return. 

See the answer provided by DaveF1006 in this thread for details on how to enter the credit amount received in TurboTax to determine if it is taxable on your 2025 federal tax return.