Clarification about Inflation Refund Check for New York State

[Finns2015]

I live in New York State and have all of my documents needed to file taxes. I received the Inflation Refund Check on September 2025.

I am confused on how to file this or if I should not. It was said that if you didn't itemize any items for Standard Deductions for 2023 and just did the Standard Deduction, you didn't have to file the Inflation Refund Check. I also saw it was to be filed in the Federal Return on other discussions. I just did the Standard Deduction in 2023. Customer service at the Department of Finance and Taxation even said it wasn't clear on how to file it.

The letter with the check said to keep it with your taxes. New York State wasn't clear on how to file this or if it should be filed at all. I also heard of a 1099-G file you received but I never got it when I logged on.

What should be done about this? Any help would be appreciated. Thank you.

[maglib]

  New York State inflation refund checks are generally NOT  TAXABLE for federal NOR NYS income tax purposes, as they are considered relief payments rather than income.  Based on historical Federal guidance it should not be income.  Issue is the Federal government stopped issuing revenue guidance bulletins so none exist for this specific Inflation reduction payment and many are saying then it is a refundable NYS tax received in 2025 and as a 1099 was issued, they are reporting it.   If you want to be conservative and enter it as a NYS tax refund check for a prior year, which possibly then be taxable if you itemized deductions in 2023.  It is 100% NOT taxable to NYS and entering it in as a state refund would not report it on NYS.

I'm sorry for the UPDATED response due to no IRS bulletin.   Just a note, we did not report it as income and I know many others did not.

Another argument is it was inflation relief of sales taxes which also would only be income if they were itemized.

@Finns2015

[Finns2015]

Thank you maglib! I appreciate your answer.

[maglib]

@Finns2015  UPDATE:  edited original.  Further information as a discussion ensued.  The IRS stopped issuing revenue bulletins so many are saying since IRS did not declare it as non-taxable that it should be reported as  in face it is a  state tax refund....  Which would mean it only would possibly be taxable if you itemized deductions.  If you want to be conservative enter it as a state refund check and if you never itemized, it will not be taxable.   I want you to be aware that other TT employees will say it is taxable and why there is so much confusion around it.  It is NOT taxable to NYS, all agree to this and if you input it as part of state tax refund, it will not report it there.  I'm so sorry for the confusion.  This is one of those things you can take either side but, as a 1099 was issued others prefer to lean toward reporting it.