Starting in September 2025, New York State is mailing inflation refund checks to 8.2 million households to provide economic relief for increased sales taxes due to inflation.
To qualify for an inflation refund check, you must have filled out Form IT-201, the New York State Resident Income Tax Return, for the tax year 2023. Note that this means you must have been a full-year New York resident in 2023. Additionally, you cannot have been claimed as a dependent on another taxpayer’s return in 2023, and your income must have been qualifying according to the following:
Source: https://www.tax.ny.gov/pit/inflation-refund-checks.htm
Checks begin getting mailed to qualifying New Yorkers in late September 2025, and it will take many weeks, likely until November 2025, for the checks to be delivered to everyone who qualifies. Mailings are not based on region nor zip code. Below is what an inflation refund check will look like, so check your mailbox for a letter like this:
Source: https://www.tax.ny.gov/pit/inflation-refund-checks.htm
Why These Refunds Matter for Estate Planning
Even a small state refund can play a meaningful role in your estate planning. Every dollar you receive is part of your overall estate and should be considered when reviewing your financial picture. For some, these funds may provide an opportunity to update or finalize important documents such as a will or trust, helping ensure assets are distributed according to your wishes. Others may use this unexpected income to begin or strengthen planning strategies that reduce the burden on loved ones in the future. Treating the refund as part of your broader estate allows you to integrate it into savings, debt reduction, or gifting strategies that support a smooth transfer of wealth.
Asset Protection and Medicaid Planning Considerations
If you are currently engaged in Medicaid or long term care planning, the way you handle your inflation refund check can have implications for eligibility. Because Medicaid qualification depends on strict financial resource limits, where and how you deposit new funds matters. In some cases, it may make sense to place the refund into an existing trust or keep it separate from personal accounts to avoid complications during Medicaid’s look-back period. Properly managing these funds is also an important part of overall asset protection, helping you preserve wealth while remaining compliant with Medicaid. Consulting with an estate planning attorney can help you use the funds in a way that protects your long term care strategy while ensuring compliance with state rules.
If you have any questions about your eligibility to receive an inflation refund check, please contact the Law Office of Inna Fershteyn at (718) 333 -2394.