ALBANY, NY - MAY 21: Gov.
Kathy Hochul holds a press conference at Common Roots Outpost to announce MIG, a national consultant group, will guide public engagement cess for spending $200 million in downtown Albany on Wednesday, May 21, 2025, in Albany, N.Y.
(Lori Van Buren/Albany Times Union via Getty Images)Albany Times Union/hearst Newspapers | Hearst Newspapers | Getty ImagesThe New York Department of Taxation and Finance will soon send the state's "first-ever inflation refund" checks.New York Governor Kathy Hochul first announced the gram in May.
The one-time payment aims to vide financial relief from higher sales taxes due to inflation, according to the release.More than 8 million New Yorkers will receive refunds, according to the state.
Payments will be mailed starting at the end of September.More from Personal Finance:'No tax on tips' offers financial planning opportunities, experts sayDOJ sues Rhode Island over student loan forgiveness gramSocial Security, other federal benefits to phase out paper checksEligibility is based on filing details from tax year 2023.
Those who qualify filed Form IT-201 as a state resident, have reported income within the qualifying thresholds and were not claimed as a dependent on another person's return.The refund payments range from $150 to $400 — the exact amount paid will depend on the taxpayer's filing and their adjusted gross income for that year.There's no need to apply or for the payment.
The refund checks will be mailed directly to eligible New Yorkers over several weeks.You may receive your check "sooner or later than your neighbors," as the payments are not based on zip codes or regions, according to the agency.Why New York is sending rebate checksThe rebate checks are possible because higher prices led to higher sales taxes, according to Jared Walczak, vice president of state jects at the Tax Foundation.
The state of New York generated more revenue than it otherwise would have, he said."This rebate check is a response to that," said Walczak.However, it's not unusual to see state, local and federal governments vide specialized rebate and stimulus checks to taxpayers, he said.Earlier this year, Sen.
Josh Hawley, R-Mo., posed the American Workers Rebate Act in July, which aims to send tariff rebate checks to households.
The bill aims to vide "at least" $600 per adult and dependent child, or $2,400 for a family of four. The legislation has not passed yet.
As of late July, it has been referred to the Committee on Finance.For now, New York seems to be the only state that has recently announced inflation-related rebate payments, said Walczak."It doesn't appear as if any [states] are looking at New York right now and choosing to ," he said.'A smart move for your future'If you do qualify for a stimulus check, it's smart to use the additional cash wisely.
"The first priority is shoring up the basics," said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in New York City.
watch now1:5501:55Student loan default collection restartingStudent LoansFor instance, use the cash to "beef up" your emergency fund so you're prepared for unexpected expenses, said Boneparth, a member of the CNBC Financial Advisor Council.
If you have high-interest debt, such as an outstanding credit card balance, consider using the refund to pay down the debt that's "eating away at your budget," he said.
But if you have those fundamental steps taken care of, the cash "could be a smart move for your future," Boneparth said.