New York State is set to issue checks to more than 8 million residents to offset the increased sales tax they've paid thanks to inflation.
The one-time payments, billed as "inflation refund" checks, range from $150 to $400, depending on your filing status and your adjusted gross income for the 2023 tax year.
To qualify, you must have filed a 2023 residential state tax return in New York, earned less than $150,000 (or $300,000 for married couples filing jointly), and not be claimed as a dependent on another taxpayer's return.
| Tax status in 2023 | Refund (based on 2023 income) |
|---|---|
| Single or married filing separately | $200 per person for those who earned $75,000 or less OR $150 per person for those who earned $75,000 to $150,000 |
| Married filing jointly | $400 per household for those who earned $150,000 or less OR $300 per household for those who earned $150,000 to $300,000 |
| Head of household | $200 per household for those who earned $75,000 or less OR $150 per household for those who earned $75,000 to $300,000 |
| Qualifying surviving spouse | $400 per household for those who earned $150,000 or less OR $200 per household for those who earned $150,000 to $300,000 |
You don't need to fill out any forms, though: The funds will be automatically mailed to the address associated with your most recently filed tax return.
If you moved since filing your 2024 return (or you haven't filed yet), you can update your information on the New York State Department of Taxation and Finance website.
According to the department, checks will be sent over several weeks, starting at the end of September.
The mailings are not based on ZIP code or region, so "you may receive your check sooner or later than your neighbors," the agency said in a statement. "We cannot provide a specific delivery schedule and our contact center representatives will not have additional information on the status of your check."
What money moves would we make with $400? We're glad you asked.
Pay down high-interest debts
The first thing to do with any extra money is to pay off high-interest debts, like credit card bills, which can quickly gobble up any windfall.
If you have $2,000 on a card with a 20% interest rate, for example, but only make minimum monthly payments of $53.33, it would take you more than 15 years to pay it off — including nearly $725 in interest.
If you put the $400 inflation refund check toward that balance, though, you'd shave off two years and over $200 in interest.
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Deposit the money in a high-yield savings account
If debt is not an issue, we'd put the money in an account where it can grow, like a high-yield savings account. While returns aren't as high as they used to be, Varo is still offering 3.75% APY on amounts up to $5,000.
Varo Savings Account
Annual Percentage Yield (APY)
Start earning 1.00% APY, then qualify to earn 3.75% APY on your balance up to $5,000.00 by receiving direct deposit(s) totaling $1,000 or more; and end the month with a positive balance in all your Varo accounts. Balances above $5,000 earn 1.00% APY.
Minimum balance
$0.01 to earn interest
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Yes
Offer ATM card?
Yes, if have a Varo Bank Account
Terms apply.
Splurge on a credit card with great rewards
If you're getting the $400 check and like to travel, the Capital One Venture X Rewards credit card has a $395 annual fee but is loaded with unique features for globetrotters, like $300 in statement credits each year for bookings made via Capital One Travel and a 10,000-mile bonus on each account anniversary.
You also receive a credit for Global Entry or TSA PreCheck, as well as access to Capital One Lounges, exclusive experiences through Capital One Entertainment and VIP treatment at five-star hotels booked through The Premier Collection.
The Capital One Venture X Rewards Credit Card is a premium credit card with a myriad of benefits and a lower annual fee than other high-end cards with similar features.
Highlights
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Top rated mobile app
Balance transfer fee
$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Foreign transaction fees
$0
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