Good news from New York: economic relief for millions of citizens

New York State has approved a budget package for fiscal year 2025–2026. In this case, it includes the delivery of checks of up to $400 to more than 8 million families. This payment aims to offset part of the negative impact of inflation on the local economy, using the excess revenue from sales taxes.

Additionally, Governor Kathy Hochul has emphasized that these checks do not require an application. They are sent automatically by mail based on the 2023 state tax return (form IT‑201).

Who will benefit from this New York rebate program

First, individuals must have filed the New York State tax return (IT‑201) in 2023. This process must have been completed before April 15, 2025. Meanwhile, individuals must have been residents of the state during 2023, and the taxpayer also can't be claimed as a dependent on another return.

As for the procedures, no additional steps or enrollment in Social Security programs are required. By meeting these requirements, the check is received by mail at the declared tax address. The checks will be delivered automatically between October and November 2025, with no need for a staggered mailing campaign by zip codes.

Although this assistance doesn't come directly from Social Security, it has an effect equivalent to that achieved by many social programs. Funds collected from sales taxes are allocated, a state mechanism with a direct impact on purchasing power.

This is the amount New York State will refund

The amount of the rebate varies according to adjusted income and marital status. For single individuals or heads of household earning up to $75,000, the check will be $200. If they earn between $75,001 and $150,000, it will be $150.

Meanwhile, for individuals filing jointly and earning up to $150,000, $400 will be refunded. If they earn between $150,001 and $300,000, they will receive $300. In cases of separate filing, the same format as for single individuals will apply.

The measure approved by New York will ease spending on basic needs such as food, housing, and transportation, benefiting middle- and low-income households. Additionally, it complements other initiatives such as tax cuts, increased child tax credit, and free school meals.