Tax Tip #251

NY tax law creates a one-time inflation refund personal income tax credit for the 2025 tax year for taxpayers who were full-year residents in 2023, had income in that year below a certain threshold, and were not claimed as a dependent by another taxpayer in that year. 

Taxpayers who filed 2023 resident tax returns as married filing jointly or qualifying surviving spouse will receive a credit of:

• $300 if their NY adjusted gross income (AGI) was more than $150,000 but less than $300,000
• $400 if their NY AGI was $150,000 or less. 

Taxpayers who filed 2023 resident tax returns as single, married filing separately, or head of household will receive a credit of:

• $150 if their NY AGI was more than $75,000 but less than $150,000
• $200 if their NY AGI was $75,000 or less. 

If the credit is included in gross income for federal income tax purposes, it’s not subject to NYS or local income tax.