New York Inflation Refund Checks: Two-Step Claim Process Starts This November

The U.S. Internal Revenue Service (IRS) has announced a series of significant changes to tax refunds for the 2026 filing year. With a focus on providing greater financial relief, the new rules introduce enhanced credits and adjustments to existing ones.

These changes are expected to benefit millions of taxpayers, particularly those in low- and middle-income brackets, as well as families with children. Here’s what you need to know about how the 2026 tax refund changes could impact your return.

New York Inflation Refund Checks

Key Change	Impact	Expected Benefit
Expanded Child Tax Credit	Increase in credit amounts and extended eligibility	Larger refunds for families with children
Earned Income Tax Credit (EITC)	Expanded eligibility and increased credit amounts	More support for low-income workers
Refundable Child and Dependent Care Credit	Increased coverage for daycare costs	Larger refunds for families with childcare expenses
Standard Deduction Increase	Higher deduction threshold for taxpayers	Reduced taxable income, higher refunds
Green Investment Tax Credits	New credits for energy-efficient home upgrades	Additional tax savings for sustainable investments

Expanded Child Tax Credit (CTC)

The Child Tax Credit (CTC) has been a critical financial tool for American families. Under the new provisions for 2026, the credit will be available in its enhanced form, similar to the temporary increases made during the COVID-19 pandemic. The enhanced CTC provides up to $3,600 per child under age 6 and $3,000 per child aged 6-17.

Unlike the previous version, the CTC in 2026 will remain fully refundable, which means that even taxpayers with little to no tax liability could still receive the full amount as a refund. This change is particularly impactful for lower-income households.

Eligibility: Families with children will qualify for the full credit if their income falls below a certain threshold. For example, married couples filing jointly can earn up to $150,000 and still receive the full credit, while single parents can earn up to $112,500.

Earned Income Tax Credit (EITC) Expansion

The Earned Income Tax Credit (EITC), which benefits low- to moderate-income workers, will undergo significant changes in 2026. These changes include both increased credit amounts and expanded eligibility, especially for workers without children.

The maximum amount for families with children will increase, but more notably, childless workers—who were previously excluded from receiving substantial benefits—will see their credit rise as well.

Why it matters: The Center on Budget and Policy Priorities (CBPP) estimates that over 5 million more people could qualify for the expanded EITC under the new rules, providing much-needed relief for individuals working in lower-wage jobs.

Eligibility: To qualify for the expanded EITC, workers must meet income limits, which vary based on filing status and the number of children. For example, the maximum credit for a family with three or more children could reach $6,000.

Refundable Child and Dependent Care Credit

The Child and Dependent Care Credit helps working parents cover childcare expenses. In 2026, the credit will be more generous, with higher maximum reimbursements and a broader range of eligible expenses, including after-school programs and daycare for children under 13.

For families with two or more children, the maximum allowable credit could rise to $8,000. This means that more parents will be able to claim a significant portion of their childcare expenses as a refund.

Eligibility: To qualify for the full credit, the taxpayer must have income below a certain threshold. Married couples earning under $150,000 and single parents earning under $112,500 will be eligible for the full reimbursement.

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New York’s first-ever Inflation Refund is here! Checks of up to $400 are going out to millions of New York families. See if you’re eligible: https://t.co/Aj2khUrFYc pic.twitter.com/CfSORAz4y4

— NYS Workers' Comp (@NYSWorkersComp) September 26, 2025

Increased Standard Deduction

The IRS also announced an increase in the standard deduction for 2026, which will likely result in tax relief for many Americans. This adjustment is part of an ongoing effort to keep up with inflation, and it is expected to reduce the taxable income of millions of taxpayers.

For instance, the standard deduction for married couples filing jointly is set to rise to $29,000 in 2026, and for single filers, it will increase to $15,000.

Why it matters: The increase in the standard deduction means that more people will be able to reduce their taxable income without the need to itemize their deductions. This simplification could lead to larger refunds for many taxpayers.

Green Investment Tax Credits

The 2026 tax code will introduce additional credits to encourage green energy investments. Taxpayers who invest in renewable energy systems, such as solar panels, or purchase electric vehicles, will be eligible for new tax credits.

For example, homeowners who install energy-efficient windows or upgrade their HVAC systems could receive up to 30% of their eligible expenses as a tax credit. The same applies to those purchasing electric vehicles, with credits reaching up to $7,500.

Why it matters: These credits incentivize eco-friendly upgrades, while also reducing out-of-pocket expenses for taxpayers. According to the Department of Energy, these investments can help reduce long-term energy costs for consumers, making it a win-win for both the environment and the taxpayer’s wallet.

Potential Challenges and Considerations

• Complexity in Claiming Credits: The expansion of eligibility for credits like the EITC and Child Tax Credit could introduce complexity for some filers. Taxpayers must ensure they meet the specific criteria and provide the necessary documentation to qualify for these credits.
• Filing Process: With new credits and eligibility changes, the IRS may face challenges in updating its filing systems. Taxpayers should be prepared for potential delays in processing, especially if they are claiming multiple credits.
• Green Investment Credits: While these credits offer financial incentives, they are also subject to eligibility restrictions. For example, the electric vehicle tax credit may not apply to every model, depending on the manufacturer’s tax status.

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Comparison to Previous Tax Years

Compared to recent years, the 2026 tax changes are particularly notable in their scope and breadth. In previous tax years, many of the credits were temporary, such as the 2021 Child Tax Credit enhancements. The fact that these credits will now be permanent, or extended with fewer limitations, marks a significant shift in U.S. tax policy.

For instance, the Child Tax Credit was reduced in 2022 from its enhanced 2021 levels. However, the 2026 provisions will restore and potentially increase those levels, allowing more families to benefit.

Similarly, the Earned Income Tax Credit has been gradually expanded in recent years, and its further expansion will bring financial relief to even more working individuals.

IRS Preparedness and Filing Resources

As the IRS prepares for the 2026 filing season, it has pledged to update its online resources to help taxpayers navigate these new changes. The agency will likely release step-by-step guides on eligibility and filing procedures, especially regarding the new green investment credits and expanded tax benefits.

For those unsure about how to file under the new rules, the IRS’s Free File program and Volunteer Income Tax Assistance (VITA) services will be available. Taxpayers are encouraged to review IRS resources as early as possible to ensure a smooth filing process.

Expert Advice for 2026 Filers

Tax professionals advise that taxpayers should start preparing for the 2026 filing season by gathering documentation related to child care, income, and any potential green investments made in 2025. Proper documentation will be crucial in ensuring eligibility for the new credits.

“Taxpayers should also be proactive about keeping receipts and records, particularly for new credits like the green energy incentives,” says Catherine Bennett, a senior tax advisor at H&R Block.

FAQ About New York Inflation Refund Checks