New York Stimulus Payment: Some banks refusing to accept $400 inflation refund checks through mobile apps

$400  New York Stimulus Payment: Many New Yorkers are having trouble with their $400 inflation refund checks. These checks are part of a state program meant to help people deal with rising living costs. But some banks are not allowing mobile deposits for these payments, making things confusing for many residents.

The checks are being sent automatically by the New York State Department of Taxation and Finance. People who filed taxes for 2023 do not need to apply or give any personal details to get the money. State officials have said that the checks are real and safe to deposit.

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“It has sent and is sending paper checks and whatever your bank’s policy is for deposit should be followed for those,” said Susan Pedo, Director of Public Information at the department.

Different banks are following different rules. KeyBank has said it accepts the inflation refund checks through its mobile banking app. People can just take a picture of the check and deposit it in the app like they do for normal payments.

Chase Bank, however, has stricter rules. Chase said it will not take these checks through mobile deposits or in-person teller transactions. Customers must go to a Chase branch or ATM to deposit their checks. The bank said this rule is to keep customers safe. A Chase spokesperson explained that the restriction is “to protect its customers’ security,” because programs like this have been used in scams before.

State warns people about scams

As checks are being sent out, officials are warning everyone to watch out for fraud. Scammers are pretending to be from the Tax Department to trick people into giving personal or banking information. The department told residents to report any strange calls, texts, or emails through its website. They also reminded people that the real Tax Department will never ask for personal or account details to give refunds.

“Scammers pretending to be the Tax Department are calling, mailing and texting taxpayers about these refund checks,” said Pedo. “We do not request any additional information or any personal information to receive your check. We are sending them directly to you.”

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Who can get the refund?

This refund comes from a $2 billion plan created by Governor Kathy Hochul as part of the 2025–2026 state budget. The goal is to help around eight million New Yorkers struggling with higher expenses. Checks started going out on September 26 and will continue through October and November. The payments are between $150 and $400, based on income and 2023 tax filing status.

To qualify, people must have filed Form IT-201, the New York State Resident Income Tax Return, and must not be claimed as dependents on another person’s tax return.

If someone loses their check or never receives it, they can ask for a new one. They need to fill out two forms  DTF-32 (Notification to Owner of an Uncashed Check) and DTF-36 (Application for an Uncashed Check). These forms are on the Department of Taxation and Finance website or can be requested by calling 518-457-5181.