As part of efforts to help residents cope with the economic impact of inflation, New York State launched the Inflation Reduction Check program, offering payouts of up to $400 for certain taxpayers. This initiative aims to reimburse individuals who overpaid sales tax during the surge in prices over the past few years. While many New Yorkers have already received their checks, not everyone is eligible, particularly some Social Security recipients and those who did not file a state tax return. Here’s a detailed look at who qualifies for the check, and how to navigate the requirements to receive this financial relief.
Eligibility Requirements for the Inflation Reduction Check
New York’s inflation reduction checks were primarily designed to help individuals who may have struggled with rising costs. However, there are specific eligibility criteria that residents must meet to qualify for the payout. First and foremost, applicants must have filed a 2023 state tax return. This requirement ensures that the state has a record of the individual’s income and eligibility for the program’s income thresholds.
The payouts range from $150 to $400, depending on income and filing status. A married couple or a qualifying surviving spouse who makes up to $150,000 could receive the maximum amount of $400, while individuals filing as heads of household or single filers with incomes between $75,000 and $150,000 might be eligible for $150. This structure ensures that those who need the relief most will benefit, but it also excludes some individuals, particularly those who are not required to file taxes.
For those who rely solely on Social Security or Supplemental Security Income (SSI), the situation becomes more complex. These individuals often do not file taxes because their income is not taxable. According to Newsday, Social Security benefits are not taxed by the state of New York, and if individuals do not have other taxable income, they are not required to file a state tax return.
Why Social Security and SSI Recipients May Miss Out
A significant portion of the New York population who may miss out on the inflation reduction check are those who receive Social Security or SSI. Since these benefits are generally not taxable in New York, many beneficiaries are exempt from filing taxes. However, the state’s check program requires a filed tax return to determine eligibility. As Carl Breedlove, principal tax research analyst with the Tax Institute at H&R Block, explains,
“So if all they got was Social Security benefits, then they likely wouldn’t have to file a New York return, barring some other special circumstance.”
This issue creates a dilemma for those individuals who may need the financial relief but don’t meet the filing criteria. For them, retroactive filing may be an option, though it’s not always straightforward. Many Social Security recipients, particularly those who do not have other sources of income, might never have considered filing taxes. In such cases, even if they are entitled to the inflation reduction check, they would need to file a 2023 tax return to claim it.
The Role of Retroactive Filing: A Potential Solution
While most people would think of filing a tax return only as a yearly obligation, retroactive filing can be an effective way for those who missed the initial deadline to still benefit from programs like the inflation reduction check. New York State allows taxpayers up to three years after the original due date to file an amended return, and this can apply to the current year’s inflation reduction checks.
“State tax law,” the department said, “allows individuals and joint filers up to 3 years after the tax return is due to file an amended tax return.”
This flexibility provides a window for those who may have missed the initial filing window, allowing them to still claim the relief they are entitled to. For Social Security recipients or others who were not initially aware of this program, retroactively filing could be their chance to receive the check.
However, retroactive filing does come with its own set of challenges. If an individual did not originally file their tax return, they may not know how to navigate the filing process. In such cases, some might seek the help of a tax professional, though this may not always be cost-effective. As Lisa Rispoli, a CPA, mentions,
“If they have to pay an accountant to do it, it’s not going to be worth it.”
How Can Low-Income Individuals File for Free?
For low-income New Yorkers who are not required to file taxes but wish to claim their inflation reduction check, there are free resources available. Programs like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free assistance to those who qualify. These services are designed to help people who typically do not file tax returns, such as low-income individuals, the elderly, and disabled persons.
Furthermore, New York’s Department of Taxation and Finance encourages people to file returns even if they are not legally obligated to do so. As the department said in an email to Newsday, “Even if you are of low or fixed income and are not legally required to file a tax return, there is nothing that prohibits an individual from filing a tax return to claim various credits and benefits.”
This advice serves as a reminder that filing a return could potentially unlock various benefits for those who may not have considered it. Whether claiming the inflation reduction check or other credits, filing a tax return can often lead to valuable financial relief.
