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New York’s Inflation Refund Checks Arrive as State Warns of Scams, Federal Tax Bite

State officials confirm the rebates are taxable at the federal level, requiring reporting on next year's returns.

Overview

  • Checks began going out in late September and will be delivered in batches through October and November via USPS, with no online tracking available.
  • About 8.2 million households will automatically receive $150–$400 based on 2023 IT-201 filings, income thresholds and not being claimed as a dependent.
  • Officials say the payments are subject to federal income tax, so recipients must report them on their 2025 federal returns because no withholding applies.
  • Residents are being warned about phishing texts, emails, calls and mailers seeking bank or personal data, and agencies say they never contact taxpayers to solicit such information.
  • The $2 billion program, funded by higher sales-tax receipts, is proceeding during the federal shutdown as USPS says mail service remains in operation.