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Newsweek
3 days ago
- Business
- Newsweek
New York's Inflation Refund Checks: Everything You Need To Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. New Yorkers could be getting a refund worth hundreds of dollars from the state later this year. Why It Matters Governor Kathy Hochul first proposed paying New Yorkers back on excess sales tax revenue in late 2024. Now, the idea has come to fruition as part of her 2026 State Budget, with the governor confirming the plans for Inflation Refund Checks on May 14. It means checks of up to $400 will be on the way for some 8.6 million people later this year. What To Know You are eligible for an inflation refund check for tax year 2023 if you filed Form IT-201 (the New York State Resident Income Tax Return), reported income within the qualifying thresholds, and were not claimed as a dependent on another taxpayer's return. Stock image/file photo: Four $100 bills. Stock image/file photo: Four $100 bills. GETTY How much you get can get depends on how much your income is. Joint filers with income up to $150,000 will receive the most available - a $400 check. Those with income over $150,000 but no greater than $300,000 will receive a $300 check. Single filers with income up to $75,000 will receive a $200 check, while those with income over $75,000 but no greater than $150,000 will receive a $150 check. There are no age restrictions, and eligible filers do not need to take any action to get their money. If you filed a return, meet the income requirements, and were not claimed as a dependent, you will automatically receive a refund check. According to the governor's official website, some 8.6 million New York State residents could benefit from the refund. In New York City, there are an estimated 3.65 million people who are eligible, 1.3 million in Long Island, and 900,000 in the Hudson Valley. What People Are Saying Hochul said in May: "Starting in October, over 8 million New Yorkers will get an inflation refund because it's simple — this is your money and we're putting it back in your pockets. I'll never stop fighting to help your family address the rising cost of living — and that's why I also delivered on my promise to cut taxes for the middle class, expand the child tax credit and ensure free school meals for every student." Charles Lindsey, associate professor in the School of Management at the University at Buffalo, SUNY, told Newsweek: "Hopefully, consumers will either use it to buy necessary, essential, non-discretionary items and/or to pay down their credit card debt, loans, and other bills or financial obligations. If this is the case, then it can be a win-win such that it can alleviate some financial pressure for consumers while at the same time not putting much additional inflationary pressure on the economy in the form of upward pressure on prices." What Happens Next Checks will be sent in mid-October 2025, with the New York State Department of Tax and Finance saying they will be mailed "over a multiple week period" due to the large volume of refunds, meaning some will arrive in November.
Newsweek
14-05-2025
- Business
- Newsweek
8 Million Americans to Get Checks Up to $400: Here's When
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. New York Governor Kathy Hochul, a Democrat, announced on Wednesday that inflation refund checks would start being mailed out in October. Why It Matters Americans have dealt with high inflation rates over the past few years amid the recovery from the COVID-19 pandemic, which caused a global economic slowdown. In New York, inflation has added to an already high cost of living. Inflation peaked in June 2022, with a 9.1 percent rate, and has steadily fallen ever since. Still, prices have not returned to pre-pandemic levels. Americans are also facing growing concerns about the recession amid President Donald Trump's tariffs. Hochul announced earlier this year that the state would be sending out direct payments to New Yorkers of up to $400 to help them deal with rising costs of living. What to Know Payments will be sent out in October and November, Hochul's office said in a press release. "This is your money and we're putting it back in your pockets," Hochul said during the announcement. "I'll never stop fighting to help your family address the rising cost of living — and that's why I also delivered on my promise to cut taxes for the middle class, expand the child tax credit and ensure free school meals for every student." New York Governor Kathy Hochul, a Democrat, rides the subway on March 21, 2025 in New York City. New York Governor Kathy Hochul, a Democrat, rides the subway on March 21, 2025 in New York City. NDZ/Star Max/GC Images via Getty Images New Yorkers will automatically receive the checks if they're eligible and there is no need to apply for it. The refund amounts are determined based on tax filing status and income. Joint filers with incomes up to $150,000 will receive a $400 check, while those earning between $150,000 and $300,000 will receive $300. Single filers with incomes up to $75,000 will receive $200, and those earning between $75,000 and $150,000 will receive $150. Eligibility is based on 2023 tax filings. Residents must have filed a New York State income tax return (Form IT-201), met the income criteria, and not been claimed as a dependent. Donald Dutkowsky, professor emeritus of economics at Syracuse University, told Newsweek the payment may be "more symbolic rather than impactful to New Yorkers." "The payment won't erase large credit card debt or student loan debt carried by so many struggling households," he said. "But obviously a refund of this type will be beneficial. It can help a household cover a lingering or delinquent bill help it with its groceries for a short period of time." Charles Lindsey, associate professor in the School of Management at the University at Buffalo, SUNY, told Newsweek the payment "can definitely take some of the pressure off of consumers in the short-run." "Hopefully, consumers will either use it to buy necessary, essential, non-discretionary items and/or to pay down their credit card debt, loans, and other bills or financial obligations," he said. "If this is the case, then it can be a win-win such that it can alleviate some financial pressure for consumers while at the same time not putting much additional inflationary pressure on the economy in the form of upward pressure on prices." When announcing the payments last week, Hochul said inflation, in addition to increasing consumer prices, has also "driven sharp increases in the State's collection of sales tax" that "belongs to hardworking New York families and should be returned to their pockets as an Inflation Refund." It will impact 8.2 million households across New York, according to Hochul's office. Georgia Governor Brian Kemp, a Republican, announced last month that residents of his state will also be eligible for a payment of up to $500. Those payments are also based on 2023 filing status. What People Are Saying Bronx Borough President Vanessa L. Gibson said in a statement: "This initiative is a clear example of what responsive, people-centered leadership looks like, and I applaud the Governor for putting money back into the pockets of those who need it most." Assembly Speaker Carl Heastie, a Democrat, said in the statement: "These checks will put money back into the pockets of New Yorkers, allowing them to save or spend in a way that makes sense for them." What Happens Next The state will begin mailing out checks in October, and deliveries will continue through November, according to Hochul's office. Delivery will not follow a regional or zip code-based schedule, meaning neighbors may receive checks on different dates. Filers do not need to do anything to receive the check if they qualify.
