NYS Inflation refund checks to IRS

[CzarSosa]

Does anyone has any guidance on how to enter the $200 dollars issued by NYS to the IRS?   I do not itemize my deductions so what will happen if I failed to enter.  I don't see any guidance from TurboTax on how to do it.

Thanks

CS

[MaryK4 · Accepted solution]

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

1. Open your return in TurboTax.
2. Go to Federal.
3. Go to Wages & Income.
4. Scroll to State and Local Tax Refunds (1099-G) and click Start or Edit.
5. When asked about the refund you received in 2025, enter:
   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
6. Continue.
7. You will see the question: “Does either apply to your 2023 New York return?”
   Even though you took the standard deduction, select: NO (Select 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” Enter the SAME AMOUNT you entered in step 5 

For federal confirmation, open your 1040- Look at Line 8z (Other income)-You should see your half (or all) of the refund included there.

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

[User126986]

The problem is that once I entered $0 for total withholding and payments, an error message appeared and siad it needs to be fixed in order to file the federal Return.

[user17724695251]

Open "St Refund Wks".  Add your NY2023 Total Payments and Withholding amount. It was zero on the 2025 form. 

[AmyC]

Since the program does not like the zero, change it to blank. The program has preferences between zero and blank in different areas and with different programs and updates.

[user17724695251]

On my return, when the field is blank, it is rose-colored and the red "not done" flag is raised in the 'Forms in my return' column. 

I tried putting numbers in the "Total payments and withholding" box. It accepts 2500 (normal flesh background color) but turned rose-colored when I entered 2400 (as it does with blank). 

[user17723964462]

I also got this error in Turbotax when status checking my NYS return after entering 0 for "Payments and Withholding".

Check this Entry
State Tax Refund Worksheet. Payments and withholding must exceed sum of individual payments. It looks like the total amount you entered from your 2023 NY tax return is less than the individual payments you made that year (estimated tax, extension payment, or payment when you filed your return). It should be higher than, or at least equal to your payments. Take a look at those numbers and update your total payments and withholding for your 2023 NY tax return. If you need to change one of the other payments, go back to the Tax Payments area to make updates.

Payments and withholding 0

Referencing this 

https://ttlc.intuit.com/community/retirement/discussion/re-i-ve-received-a-1099-g-in-the-mail-and-tu... 

It says:

"You need to look on your state tax return and enter the state and local tax paid in. That will be the total of tax withheld and any additional estimated tax you may have paid toward your previous year state tax filing."

In my case I looked at my 2023 NYS IT-201 return and pulled the number on line 76 Total payments.

Instead of using 0, I substituted this new number (which is >0)  I pulled from my 2023 NYS IT-201 form line 76 for Payments and withholding.

I no longer get the error when using Turbotax to CHECK my 2025 NYS return.  

We shouldn't have to guess our way around this issue!