2025 online form 1099-G from NYS for the inflation refund received, unable to enter in 2025 TurboTax Deluxe desktop version

[wangml320]

2025 1099-G, box 1=2025, box 2=$300, this is for the inflation refund check issued in September 2025.

I try to enter 2025 from box 1 to Tax return year under 1099-misc and other common income, state and local tax refunds on form 1099-G, getting "Enter a tax year before 2025, If this refund is from last  year's taxes, enter 2024". The 2024 info was already populated from 2024 return when I imported. Did I enter the 1099-G info to the wrong place or there is a bug in TT. This inflation refund is not a normal income tax refund. Please advise on what to do.

[AmyC]

The 1099-G should be entered under Other Common Income then select State and Local tax Refund. Enter the entire form.

The $300 part may not be taxable.

Follow these steps to determine if taxable:

1. look at your 2023 tax return (the one NY used to compute your rebate check).
2. did you itemize federal and state taxes?
   • No, it is not taxable and does not need to be entered
   • Yes, it might taxable.
     •  if you deducted NY state and local tax paid in full on 2023, the inflation refund is taxable.
     • if you were unable to deduct the full amount, since it was capped at $10,000, it is not taxable.

The program may ask you about 2023 to verify the taxable portion.

[wangml320]

I am in the right place and trying to entered all the info from the New York State 2025 1099-G form but TurboxTax 2025 Deluxe desktop software will not allow me to enter "2025" from box 1 as the Tax retrun year. The messae from TT "Enter a tax year before 2025 - If this refund is from last year's taxes, enter 2024". I did not itemized in 2024 return so this $300 is probably not taxable but if I am unable to enter it, IRS might still give me issues. I think TurboTax needs to fix this bug or I am unable to enter this $300.

[AmyC]

It is from your 2023 tax return so select 2023.

[ez10977]

@AmyC 

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.​

[AmyC]

Generally a state issues a refund for taxes overpaid the prior year is a correct statement. However, the inflation refund is based on the 2023 return. You have confused state refund with inflation refund.

@ez10977 

[ez10977]

@AmyC 

To clarify, the reporting requirement is based on the 2023 return to identify which individuals met the gross income test. However, since this is not considered an overpayment from 2023, it does not affect those who itemized their deductions on their 2023 returns.

For the 2025 tax year, only individuals who itemize deductions and claim a tax deduction on Schedule A must report this rebate as "Other Income" on IRS Schedule 1.

To account for this, you may either:

1. Reduce that income on form IT-225 under addition/subtraction code S-217.

2. Reduce the NYS income taxes paid on Schedule A by the rebate amount, which would eliminate the need for adjustments on form IT-201.

[wangml320]

Appreciate all the help. I just need to know how to enter my New York State 2025 1099-G on 2025 TurboTax Deluxe Windows Desktop Version with Box 1=2025 and Box 2=$300. When I first enter the info under local and state refund 1099-G section on TT, upon entering 2025 as the tax year, TT will not allow me to do so. Per AmyC, I changed the year to 2023 and that got me through. If you guys still think this is not correct, please advise.

[ez10977]

@wangml320 

I would enter it on Schedule 1 line 8z with a write in 1099-G, or will reduce the taxes paid entered on schedule A.

[wangml320]

ez10977, your reply just confuses things even further for me. If you are not using my data and give step by step instructions in relates to TurboTax software, I will not be able to follow. So far, AmyC instructions comes very close where I came follow 95% but I still don't get why entering 2023 as the year instead of 2025 as it shows from Box 1. If this amount after entering on TT will not show up on any forms or schedules, it's like not entering at all.

[KrisD15]

You are entering that it was BASED on 2023, not that you RECIEVED it in 2025. 

You only report the income you RECEIVED in 2025 on your 2025 Federal Return. 

You enter that it was FOR 2023, because

1. The inflation Rebate is based on your 2023 income

2. If you have a state refund for tax year 2024, you can enter that 1099-G without it being added to the Infraction Rebate amount. 

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