Over 8M New Yorkers to Receive First-ever Inflation Refund Cheques of up to $400 Starting Sept. End

The New York Department of Taxation and Finance recently announced that it will start mailing inflation refund cheques to over 8 million New Yorkers at the end of September. The department expects to complete the disbursement of this one-time payment over multiple weeks. The refunds range from $150 (£111) to $400 (£296) and depend on your tax filing status.

You could receive your cheque 'sooner or later than your neighbours,' as the payments are not based on zip codes or regions, according to the agency.

The program, announced in May, is expected to provide New York State residents with financial relief amid high inflation. '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,' Governor Kathy Hochul had stated earlier this year.

There are no age restrictions and no need to sign up or apply for these cheques as they will be automatically sent to eligible residents. Eligibility is based on tax filing details from the 2023 tax year, for which the deadline was 15th April, 2024. You qualify if you filed Form IT-201 as a state resident, reported income within the qualifying thresholds, and were not claimed as a dependent on another taxpayer's return.

Joint tax filers with a 2023 New York adjusted gross income of up to $150,000 (£111,018) will receive $400 cheques, while couples earning over $150,000 but no more than $300,000 (£222,037) will receive $300 (£222) cheques.

Single tax filers who earned up to $75,000 (£55,509) in 2023 will receive $200, while those who earned over $75,000 and up to $150,000 will receive $150 cheques. The same thresholds and refund amounts apply to married people who are filing separately.

Qualifying surviving spouses who earned up to $150,000 will also receive $400 cheques and $300 for those above $150,000 and up to $300,000 in earnings.

The agency clarified that the cheques will only be sent by mail and will not be directly deposited into bank accounts, even if you received tax refunds electronically. In case you have moved since filing your 2024 tax return, you can easily update your address with the department using your individual online services account. You can create one here if not already.

According to the Tax Foundation's Jared Walczak, the rebate cheques are possible because higher prices led to higher sales taxes, meaning New York state generated more revenue than it otherwise would have. 'This rebate check is a response to that,' said Walczak.

He added that it is not unusual for state, local and federal governments to provide specialised rebates and stimulus checks to taxpayers.

As of now, New York appears to be the only state that has recently announced inflation-related rebate payments. 'It doesn't appear as if any are looking at New York right now and choosing to follow,' Walczak said.

Sen. Josh Hawley proposed the American Workers Rebate Act in July, which is designed to send tariff rebate cheques to households. The bill plans to provide at least $600 (£444) per adult and dependent child, or $2,400 (£1,776) for a family of four. The bill is yet to pass, but has been referred to the Committee on Finance.