Stimulus payments are one of the most convenient and accessible ways for both state and federal governments to help citizens cover imminent expenses during times of low economic downturn. During the Covid-19 pandemic, stimulus payments played an important role in helping citizens across the US help cover the unexpected inflation increase and sudden job loss, with unemployment reaching record highs since the Great Depression. Now, this state is continuing to send out payments to eligible individuals in order to continue to help fight the impact of inflation.
Stimulus payments help cope with rising costs of living
During the COVID-19 pandemic, the federal government released three rounds of stimulus payments, known as Economic Impact Payments (EIP), to assist individuals with the increased financial demands of the pandemic. Not only did many homes lose their primary source of income due to both major job losses and fatalities from the virus, but inflation skyrocketed, putting immense financial strain on individuals.
While inflation rates have returned back to pre-Covid-19 levels and have been generally stable, many are still struggling to cope with the current cost of living. Housing is a particular concern, with both rental and property prices continuing to rise. In New York State, the cost of living is notoriously expensive. The state constantly ranks above the average cost of living compared to the rest of the country, with some sources suggesting that New York state can be as much as 78% more expensive to live in than anywhere else.
This state is sending a $400 payment for inflation
To address to cost-of-living crisis in New York, Governor Kathy Hochul announced that over 8 million New Yorkers will be receiving a one-time $400 payment to help ease imminent costs due to inflation. While the payment does not solve the problem in the long term, the payment is expected to provide some immediate financial relief to families.
“Starting in October, over 8 million New Yorkers will get an inflation refund because it’s simple — this is your money and we’re putting it back in your pockets. I’ll never stop fighting to help your family address the rising cost of living — and that’s why I also delivered on my promise to cut taxes for the middle class, expand the child tax credit and ensure free school meals for every student.”
According to the New York Department of Taxation and Finance, payments will begin to be sent out by mid-October and will continue to be sent out into November. To be eligible to receive the payment, you must meet the following criteria:
- Filed Form IT-201, New York State Resident Income Tax Return.
- Reported income within the qualifying thresholds below.
- Were not claimed as a dependent on another taxpayer’s return.
New York continues to improve the lives of citizens
To receive the full $400, you must be a married couple filing jointly and earn a combined income of less than $150,000. If you are an individual filer earning less than $75,000, you will receive $200, while if you earn between $75,000 and $150,000, you will receive a $150 payment. On top of the inflation checks, the new budget for the state is set to include other incentives for citizens to help make the state a more affordable place to live in.
Individuals earning less than $215,400 will experience a 0.1% decrease in income tax for the 2026 filing season and free school breakfast and lunch plans are expected to be implemented across the state. Hochul’s budget also includes an expansion of the Child Tax Credit, where eligible families can receive a $1,000 credit for children younger than 4 years old and a $500 credit for children ages 4-16. The state will also be sending out new BABY stimulus payments for eligible families who have recently welcomed a newborn.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up-to-date and obtain information for your decision-making.
