News Summary
New York plans to issue one-time inflation refund checks of up to $400 to over 8.2 million tax filers this fall. Governed by a recent budget agreement, the distribution is aimed at easing financial burdens associated with rising living costs, costing the state roughly $2 billion. Eligible individuals will receive checks based on their adjusted gross income, with automatic distribution managed by the Department of Taxation and Finance starting in October. Amidst economic challenges and criticism from some lawmakers, the initiative aims to support families facing increased expenses.
New York is set to distribute one-time “inflation refund” checks of up to $400 to over 8.2 million tax filers this fall, as part of a tentative budget agreement recently reached by Governor Kathy Hochul and state lawmakers. This initiative, aimed at alleviating the financial burden of rising living costs, is included in a proposed $254 billion budget that is expected to be voted on later this week.
The inflation refund checks are projected to cost the state about $2 billion and will be automatically sent to qualifying individuals based on their state adjusted gross income (AGI) reported in their 2023 tax returns. Those eligible include:
- Individuals with an AGI of $150,000 or less.
- Joint filers with an AGI of $300,000 or less.
Specific amounts that qualified individuals will receive are as follows:
- Individuals earning $75,000 or less will receive $200.
- Individuals earning between $75,000.01 and $150,000 will receive $150.
- Joint filers with an AGI of less than $150,000 will receive $400.
- Joint filers with an AGI between $150,000.01 and $300,000 will receive $300.
Those earning above these thresholds or who are claimed as dependents are not eligible for the checks. The New York Department of Taxation and Finance will manage the distribution, sending checks automatically without requiring applications from recipients. The checks are slated to begin arriving in October 2025, continuing through November, and will be sent to the most recent addresses on record from the 2023 tax filings.
Governor Hochul has made it clear that this financial assistance program is intended to support families facing increased costs of living while also returning excess tax revenue to taxpayers. Alongside the inflation refund initiative, the budget proposal also includes funding to provide free school meals for approximately 2.7 million students and tax cuts benefiting over 75% of tax filers in New York.
Despite these plans, some lawmakers have expressed criticism of the refunds, suggesting they may be perceived as a political maneuver rather than a genuine policy effort to support residents. The suggested budget also designates funding for various initiatives, including child care support, infrastructure projects, and an uptick in the state’s child tax credit, aimed at fostering long-term financial stability for families across New York.
The measures included in this budget are reflective of ongoing economic challenges faced by many residents, as inflation and cost of living concerns persist. Lawmakers are aware that the support provided through these checks will likely have a significant impact on household budgets, especially for low- to middle-income families who have been disproportionately affected by rising costs.
As New York prepares for the rollout of these refund checks, tax filers should ensure their income information is up to date with the state in order to facilitate the efficient delivery of these funds.
Deeper Dive: News & Info About This Topic
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- Google Search: Kathy Hochul
