Publication date: October 19, 2026

What it is

The IRS has begun issuing automatic refunds to some families who claimed the Adoption Tax Credit and carried forward unused credit from earlier years. This update may matter if you adopted a child and filed a 2025 federal tax return.

What the IRS says

In an October 16, 2026 announcement, the IRS said that for tax year 2025 only, adoption tax credit carryforwards from tax years 2020 through 2024 can increase the refundable portion of the 2025 Adoption Tax Credit, subject to a limit of $5,000 per qualifying child. The IRS said it has begun issuing refunds to more than 50,000 taxpayers and expects most eligible taxpayers’ refund processing to be complete by the end of 2026.

The IRS says affected accounts will generally be adjusted automatically, so eligible taxpayers generally do not need to file an amended return. The IRS will send a notice, generally within 30 days of the adjustment. People who filed under an extension or have certain account issues may be reviewed later in 2026 after the return is processed or the issue is resolved.

What this may mean for you

If you had unused Adoption Tax Credit from 2020 through 2024 and filed a 2025 return, you may be eligible for an automatic adjustment. Eligibility and the amount depend on your tax account and qualifying circumstances. The announcement does not mean every family who adopted will receive a refund.

What to do now

Review any IRS notice carefully, compare it with your 2025 return, and keep the notice with your tax records. You can also check your IRS online account for notices and account information. If you filed under an extension or your account has an issue, the IRS says your case may be reviewed later in 2026. Do not file an amended return solely because of this announcement without first reviewing your facts.

Official source

IRS: Automatic refunds for Adoption Tax Credit carryforward claims

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