New York Governor Hochu and the State Council have reached a preliminary agreement on an “inflation refund” plan, which is expected to provide a direct subsidy of up to $400 to millions of eligible residents this fall.
According to the Division of the Budget, approximately 8.2 million taxpayers are eligible to receive the refund, and the entire refund plan is expected to cost the state government about $2 billion. This measure aims to assist the public in coping with ongoing inflation and the high cost of living throughout the state.
Under the current plan, taxpayers who meet the following conditions will automatically receive a refund check: they must have filed their New York State income tax return for the year 2023; individual filers must have an Adjusted Gross Income (AGI) of less than $150,000; joint filers must have an AGI of less than $300,000; and individuals who are dependents of others do not qualify.
The amount of the check varies based on income: individuals with annual incomes below $75,000 will receive $200; individuals with incomes between $75,000 and $150,000 will receive $150; joint filers with AGIs below $150,000 will receive $400; joint filers with AGIs between $150,000 and $300,000 will receive $300.
Since many taxpayers have filed for extensions for the 2024 tax year, the current year’s data is incomplete, so the authorities will rely on the 2023 tax filing information.
Taxpayers do not need to apply or submit additional documents, as the State Tax and Finance Department will automatically send out refund checks based on the 2023 tax filing information.
An exact distribution date has not been announced yet, but the tax department expects the checks to be sent out this fall.